Tag: reform

Chile’s Labor Minister Zaldívar resigns over pension reforms

Mary Pat Campbell

Link: https://en.mercopress.com/2021/04/08/chile-s-labor-minister-zaldivar-resigns-over-pension-reforms

Excerpt:

Chile’s Labor Minister María José Zaldívar submitted her resignation Wednesday to President Sebastián Piñera, who accepted it and announced he would appoint Deputy Patricio Melero to succeed her.

….

Zaldívar’s intentions to leave her job were no surprise as the pension reform failed to go her way. ”I highlight her tireless effort to carry out the reform of the pension system to improve the benefits of millions of current and future pensioners and lay the foundations for a fairer, more supportive pension system with better pensions,” said Piñera.

But Senate Speaker Adriana Muñoz of the opposing Party for Democracy (center left), expressed her dissatisfaction: “It seems complex to me to continue holding this debate with a government that changes our interlocutors every three months.”

Publication Date: 8 April 2021

Publication Site: MercoPress

Opponents vow to intensify campaign against proposed Florida pension revamp

Mary Pat Campbell

Link: https://www.thecentersquare.com/florida/opponents-vow-to-intensify-campaign-against-proposed-florida-pension-revamp/article_a37e3158-93d8-11eb-a8d7-7771f4ad8a68.html

Excerpt:

SB 84’s legislative analysis estimates the proposed change would save the state $8.3 million in the first year, increasing to $109.7 million annually after 30 years.

As of June 30, FRS held $164.3 billion in assets against $200.3 billion in liabilities, leaving $36 billion in unfunded liabilities, which means the FRS could cover 82 percent of its obligations if every member retired today.

Templin said an 80-percent threshold is the “gold standard” in pension viability and the FRS is “in very good shape.”

Which makes it attractive for manipulation, said AFSCME Florida Retiree Executive Board member Maxie Hicks.

Author(s): John Haughey

Publication Date: 2 April 2021

Publication Site: The Center Square

Multiemployer Pensions: Will the Recent Bailout Destroy Pensions (in the Long Run)?

Mary Pat Campbell

Link: https://marypatcampbell.substack.com/p/multiemployer-pensions-will-the-recent

Graphic:

Excerpt:

I think it unlikely that Congress, at least this Congress, will pass any MEP reforms. The bill allowing for MEP benefit cuts passed under Obama, during his second term – with a Republican House and a Democratic Senate.

There may eventually be MEP reforms, but with a big cash injection into Central States Teamsters, the reckoning day has been pushed off.

The real crisis was Central States Teamsters going under. It would have taken down the PBGC. The puny plans like Warehouse Employees Union Local No. 730 Pension Trust (total liability amount: $474,757,777) are drops in the bucket compared with Central States (total liability amount: $56,790,308,499).

Author(s): Mary Pat Campbell

Publication Date: 5 April 2021

Publication Site: STUMP at substack

Vermont teachers, state employees say they were ‘blindsided’ by proposed pension fund plan

Mary Pat Campbell
Vermont teachers, state employees say they were ‘blindsided’ by proposed pension fund plan

Excerpt:

 bill in the Vermont Legislature aimed at taking on a growing deficit in the state’s pension fund continues to face opposition from teachers and state employees.

At a public hearing on Monday, both groups said they feel blindsided by the bill, specifically the burden it would place on them to reduce the $5.8 billion shortfall in the pension system.

“If this is what it’s like to be a state employee, I’ll tell my kids and my grandkids don’t ever come and work for the state,” said Greg Machia. “I never thought in my 30 years I’d be talking about pensions.”

The legislation would have state employees and teachers pitching in more toward their pension plans, while increasing the age most workers would see retirement benefits.

Author(s): Devin Bates

Publication Date: 29 March 2021

Publication Site: myChamplainValley

Mark Crow: The time is now for meaningful Vermont pension reform

Mary Pat Campbell
Mark Crow: The time is now for meaningful Vermont pension reform

Excerpt:

What if you owed someone a substantial amount of money and were making annual payments each year to pay down the debt. However, every year, year after year, the amount you owe and the annual payments you must make increases — significantly.

Now, what if, at the same time, you owed someone a separate substantial amount of money but there was no schedule to pay it back. You were making some intermittent, smaller payments when the lender periodically asked for them, but there was no plan in place to pay off the entire debt. And, like the first debt, each year, the amount you owe increases — significantly.  

Meanwhile, you’ve got other essential expenses — car and house payments and maintenance, child care, food, clothing, medical care, etc. But, with those large debts continuing to increase, you are finding that you can’t afford to pay for some or all of these essential expenses. You could try to borrow money to pay for them but, because of those troublesome and ever-increasing debts, your credit score is low (and is at risk of being further lowered) and the only loan you can get, if you can even get a loan, will bear interest at a high rate.

Author(s): Mark Crow

Publication Date: 29 March 2021

Publication Site: VT Digger

Employees voice concerns over new state pension proposal

Mary Pat Campbell

Link: https://www.mynbc5.com/article/employees-voice-concerns-over-new-state-pension-proposal/35972945

Excerpt:

The proposed changes would make public employees work longer hours and contribute more money. When it was time to receive the pension, there would be less.

The proposed budget has $150 million for the pension program.

“We just have to take a look, do the best we can to protect those who are heavily invested,” Governor Phil Scott said on Friday. “We’ll come to some conclusion hopefully they come through but these are difficult times when the majority party is faced with this much pushback.”

This plan, brought forward by Democrats, is receiving heavy backlash from the teachers and police unions.

Author(s): Carolyn Sistrand

Publication Date: 30 March 2021

Publication Site: NBC 5

Vermont lawmakers seek pension reforms to stem funding shortfalls

Mary Pat Campbell

Link: https://www.pionline.com/pension-funds/vermont-lawmakers-seek-pension-reforms-stem-funding-shortfalls

Excerpt:

Vermont lawmakers are pushing a plan to reduce a widening shortfall in the state’s retirement systems by asking teachers and state employees to pay more into their pension plans and work more years.

During a March 24 meeting, the Vermont House Government Operations Committee proposed teachers base contribution rates be raised by 1.25% to 2.25% and that most state employees be increased by 1.1%, according to a proposal posted on the Vermont General Assembly website.

The proposal also bumps up the age at which most workers can qualify for retirement benefits, requiring them to reach full Social Security retirement age, which is currently 66 or 67. Some groups of teachers and state employees can now retire as early as 62 or with 30 years of service.

Author(s): Margarida Correia

Publication Date: 29 March 2021

Publication Site: Pensions & Investments

Kentucky Lawmakers Override Pension Bill Veto

Mary Pat Campbell

Link: https://www.ai-cio.com/news/kentucky-lawmakers-override-pension-bill-veto/

Excerpt:

The GOP-run Kentucky state legislature has overridden Democratic Gov. Andy Beshear’s veto of a pension reform bill that will place new teachers in a hybrid pension plan that incorporates aspects of a defined contribution (DC) and a defined benefit (DB) plan.

Under House Bill 258, new teachers are required to contribute more to their retirement plans than current teachers do, and they will have to work for 30 years instead of 27 to earn their maximum benefits. The new rules will become effective at the beginning of 2022.

The bill had been passed by large majority of both chambers of the legislature earlier this year, with the House passing it by a vote of 68 to 28 and the Senate passing it by a count of 63 to 34. Because the state’s Republicans have a supermajority in both the House and Senate, they didn’t have much difficulty in overriding the veto, which was one of 24 vetoes passed down by Beshear, a Democrat, that were overridden in one day.

Author(s): Michael Katz

Publication Date: 1 April 2021

Publication Site: ai-CIO

Legislators override veto of bill reforming pensions for future Kentucky teachers

Mary Pat Campbell

Link: https://www.wdrb.com/news/education/legislators-override-veto-of-bill-reforming-pensions-for-future-kentucky-teachers/article_7cce8d94-90e7-11eb-99ba-d74ac0b11b3d.html

Excerpt:

Kentucky lawmakers voted Monday to override Gov. Andy Beshear’s veto of a bill that would change future teachers’ pension benefits. 

The House and Senate, both with GOP supermajorities, voted to override Beshear’s veto of House Bill 258, which would create a “hybrid” pension tier blending defined benefit and contribution components for new Kentucky teachers hired starting in 2022. 

That means teachers hired starting next January would be required to pay more toward their retirement and work longer before they can earn full benefits.

Author(s): Associated Press

Publication Date: 29 March 2021

Publication Site: WDRB

Vermont lawmakers seek pension reforms to stem funding shortfalls

Mary Pat Campbell

Link: https://www.pionline.com/pension-funds/vermont-lawmakers-seek-pension-reforms-stem-funding-shortfalls

Excerpt:

Vermont lawmakers are pushing a plan to reduce a widening shortfall in the state’s retirement systems by asking teachers and state employees to pay more into their pension plans and work more years.

During a March 24 meeting, the Vermont House Government Operations Committee proposed teachers base contribution rates be raised by 1.25% to 2.25% and that most state employees be increased by 1.1%, according to a proposal posted on the Vermont General Assembly website.

The proposal also bumps up the age at which most workers can qualify for retirement benefits, requiring them to reach full Social Security retirement age, which is currently 66 or 67. Some groups of teachers and state employees can now retire as early as 62 or with 30 years of service.

In addition, employees will receive a lower overall benefit as it would be based on the average of their seven highest consecutive years of salary rather than the three highest as is now the case, according to the proposal.

Author(s): Margarida Correia

Publication Date: 29 March 2021

Publication Site: Pensions & Investments

Alicia Munnell: Biden’s Social Security Tax Hike Plan Falls Short

Mary Pat Campbell

Link: https://www.thinkadvisor.com/2021/03/19/alicia-munnell-bidens-social-security-plan-falls-short/

Excerpt:

THINKADVISOR: What’s your take on President Biden’s proposal for fixing Social Security?

ALICIA MUNNELL: A step in the right direction. Good ideas but incomplete. There’s nothing wrong with it. It’s just not complete. He wants to have a few benefit enhancements and to increase taxes for people earning over $400,000. But I don’t think his numbers close the full 75-year Social Security [system] shortfall.

Author(s): Jane Wollman Rusoff

Publication Date: 19 March 2021

Publication Site: Think Advisor

The hopeful news for Social Security buried in the $1.9 trillion bailout

Mary Pat Campbell

Link: https://www.msn.com/en-us/money/retirement/the-hopeful-news-for-social-security-buried-in-the-1-9-trillion-bailout/ar-BB1eht7e?ocid=BingNews

Excerpt:

Lawmakers have moved to include in the bill an unrelated $86 billion bailout for bankrupt union pension plans.

And once they’ve done that, it’s going to be even harder for them to argue that they shouldn’t bail out the stricken Social Security trust fund that is actually their responsibility. Social Security’s deficit: $16.8 trillion, or about $50,000 for every person in America.

On the other hand, if Congress tries to weasel out of fully funding Social Security in a few years’ time, this rescue of private sector union pensions is going to look like an outrage.

Author(s): Brett Arends

Publication Date: 6 March 2021

Publication Site: MSN Money