The market's dramatic selloff was difficult and uncomfortable but merely "choppy seas" for the long-term investor, the CIO of CalSTRS said.» Read More
For far too long, states and municipalities spent above their means, creating massive structural budget deficits.
It is well known that America’s public pension funds are in serious trouble. A study by the Center for Retirement Research at Boston College recently estimated the funding gap at state and local pension funds is nearly $700 billion, or roughly 80 percent of current liabilities. Compare that to 1999, when state pension funding stood at 102 percent.
The small city of Central Falls, R.I., appears to be headed for a rare municipal bankruptcy filing, and state officials are rushing to keep its woes from overwhelming the struggling state, the New York Times reports.
The major issue facing states and municipalities is the unsustainability of their defined benefit public pension plans. States and local governments made promises to public employees that upon retirement they would receive defined payments for the rest of their lives.
America’s public sector has not produced many pleasant financial surprises this year. This week, however, one emerged: John Liu, New York City Comptroller, announced that in the year to June 30, the City’s pension fund produced returns of more than 20 percent, raising total assets to $119 billion, according to the FT.
Now is the time to play it safe, Joe Dear, CIO of the largest United States public pension fund, the California Public Employees Retirement System, told CNBC Thursday.
The mail gets delivered in rain or snow but it might not include pension checks for postal workers. According to a June 22, 2011 press release from the United States Postal Service, it intends to suspend what it owes to its pension plan as a way to “conserve cash and preserve liquidity.” By doing so, it frees up $800 million in cash for the current fiscal year.
CNBC's Gary Kaminsky looks at weakenss in European financial stocks; and insight on taking a long term approach to investing, with Joe Dear, CalPERS CIO.
The nation’s space agency has budgeted more than half a billion dollars to cover retirement funds due to thousands of workers at a long-term shuttle contractor.
Public pension funds managing the retirement and health care benefits of teachers and firemen are pouring money into hedge funds, as much as doubling the money they allocate to the industry, in a desperate attempt to bridge the funding gap in their plans.
Indonesia's rupiah is on a roll and high frequency traders are on the prowl. Time for your FX Fix.
There's no doubt that states and municipalities have taken on more obligations than they can possibly pay. They can't afford the pensions, medical benefits and debt payments they've already promised to pay. When you add in the costs of basic services, such as education and policing, the situation is very obviously untenable.
Discussing how the nation's second-largest pension fund plans to boost its performance and investment opportunities, with Christopher Ailman, California State Teachers' Retirement System.
The fiscal challenges facing states is not new and the budget battles we saw in both Wisconsin and Ohio just showcases the problem. One of the biggest challenges states are facing when tackling their budget shortfalls is their pension deficits.
The basic accounting assumption that underlies pension fund valuations may be a huge gift to private equity funds.
Conventional wisdom and the laws and constitutions of many states have long held that the pensions being earned by current government workers are untouchable. But as the fiscal crisis has lingered, officials have begun to take a second look, to see whether there might be loopholes allowing them to cut the pension benefits of current employees. The New York Times reports.
Joe Dear, CalPERS CIO, shares his money mantras with "Squawk Box."
A wise old fund manager once told me "never trust a man or woman under the age of thirty to manage your money; they ain't seen nothing yet."
In Wisconsin, new pension cost estimates are expected to show that contribution levels are too meager and more money will be needed from public workers, the NYT reports.
More Americans are seeing public servants as public enemies in some ways. It's a case of pension envy.