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    Entries in discount rate (2)

    Monday
    Oct102016

    Houston’s Plan to Cut Pension Costs in Half Overnight

    Mayor Sylvester Turner is garnering praise for his proposal's comprehensiveness and balance.
    BY  SEPTEMBER 29, 2016

    Earlier this month, Houston Mayor Sylvester Turner released his outline for fixing the city's underfunded pension system, an issue that earned the city a credit rating downgrade in March.

    Observers say the plan is the best effort yet at solving a problem that has eluded past city officials. If approved, the proposal would immediately cut Houston's unfunded liability by $3.5 billion -- or nearly in half -- while putting Houston on a path to pay off the rest of its pension debt over the next generation.

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    Wednesday
    Aug032016

    Public Pensions Facing Worst Returns Since Recession

    A volatile stock market over the past year has taken a toll on public pension assets.
    BY  AUGUST 3, 2016

    Public pension plans are reporting dismal investment returns this year, a development that will likely mean governments will have to pony up more money in the coming years.

    So far, no major pension plan has reported a preliminary annual investment return of more than 1.5 percent. That's thanks to a volatile stock market that's seen wild swings spurred mainly by political and economic events abroad. Some smaller plans, such as the New Mexico Educational Retirement Board, have reported earnings as high as 2.6 percent. Still for many, this year marked their worst earnings year since the Great Recession.

    The slim earnings for fiscal 2016, which ended June 30 for most plans, is well below the average earnings target of about 7.5 percent. It also marks the second year in a row that plans have missed the assumed rate of return: Most reported an investment gain between 2 percent and 4 percent in fiscal 2015.

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