Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 5th, 2015
Benefits & Administration
Judges Sue CalPERS over Pension Change
Six judges elected to California superior courts in 2012 claim in a lawsuit that putting them in a new pension plan effectively reduced their compensation, which violates the state constitution. The lawsuit states that the Public Employees Pension Reform Act was unfairly and retroactively applied to judges who were elected to the bench before the enactment of the law in 2013. The judges have sued the state, the state controller, the Judicial Council and the California Public Employees Retirement System (CalPERS), according to Courthouse News Service.Read more >
A year-end analysis from Towers Watson finds the aggregate pension funded status for Fortune 1000 companies fell to about 80% at the end of 2014, down 9% from a year earlier to give back much of the gains from 2013.Read more >
Time to Focus on Gen X Retirement Readiness
The oldest members of Generation X—those born between 1965 and 1980—are turning 50 in 2015. Few financial services companies acknowledge Generation X’s most troubling financial planning concerns, according to a study from Weber Shandwick, a communications strategist for financial services companies. The study, “Leveraging the Gen X Retirement Market: From Overlooked to Opportunity,” found that Gen X is an engaged group of workers and investors who are doing many things well. But, Brooke Worden, senior vice president of financial services at Weber Shandwick, tells PLANSPONSOR there is a significant problem that plan sponsors and advisers can help with.Read more >
The City of Cincinnati, along with retirees and various unions representing current employees, have reached a deal to fully fund the city’s pension system within 30 years. A statement from Cincinnati Mayor John Cranley’s office says recent estimates put the unfunded pension liability at roughly $862 million.Read more >
Industry Voices
Industry Voices: Mind the (Coverage) Gap
The first step towards solving a problem is admitting there is one, but it’s important to apply an objective perspective. A number of solutions have been proposed to address the issue of workers not covered by employer-sponsored retirement plans, and these proposals have a laudable goal—expanding participation in retirement saving. However, each potential solution starts with different assumptions about the characteristics and demographics of the uncovered worker population, which can lead to unintended consequences.Read more >