Author: Mary Pat Campbell

Public Pension Roundup: Reform And Regression

Mary Pat Campbell

Link: https://www.forbes.com/sites/ebauer/2021/02/19/public-pension-roundup-reform-and–regression/

Excerpt:

Now, generally speaking, when an employer switches from a traditional pension to a defined contribution plan, this means a significant drop in plan benefits for employees. In Florida, that’s not the case — at least nominally not so: the employer contribution rate is the same for either type of plan, and varies only by employment class. (Of course, this doesn’t take into account any additional contributions needed to remedy funded status.) In addition, regular readers will know that I insist whenever the opportunity arises that state and local employees should participate in Social Security just as much as the rest of us do; as it happens, that is already the case for public employees in Florida. In addition, unlike the 8 year vesting of the traditional pension plan, the employer contributions to the defined contribution plan vest after only a year of service.

Author(s): Elizabeth Bauer

Publication Date: 19 February 2021

Publication Site: Forbes

DiNapoli: January Local Sales Tax Collections Down 5.9 Percent

Mary Pat Campbell

Link: https://www.osc.state.ny.us/press/releases/2021/02/dinapoli-january-local-sales-tax-collections-down-5-point-9-percent

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Excerpt:

Local government sales tax collections statewide were down 5.9 percent in January compared to the same time last year, State Comptroller Thomas P. DiNapoli announced today. Collections totaled $1.5 billion, down $95 million from January 2020.

The decline was less than the 8.4 percent drop in December and the double-digit declines in the earlier months of the pandemic (April-June).

“The COVID-19 pandemic continues to weigh heavily on New York’s local governments, even as vaccines are being distributed and infection rates are declining from all-time highs,” DiNapoli said. “Congress must pass a COVID relief bill that helps our local governments during this crisis. Majority Leader Schumer and the entire New York congressional delegation know how much our local communities are suffering and are working diligently to get them aid.”

Author(s): Thomas DiNapoli

Publication Date: 17 February 2021

Publication Site: Office of the New York State Comptroller

DiNapoli: State Tax Revenues $2 Billion Lower Than Last Fiscal Year

Mary Pat Campbell

Link: https://www.osc.state.ny.us/press/releases/2021/02/dinapoli-state-tax-revenues-2-billion-lower-last-fiscal-year

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Excerpt:

State tax receipts cumulatively through January of State Fiscal Year 2020-21 are nearly $2 billion lower than last year, according to the monthly State Cash Report released by New York State Comptroller Thomas P. DiNapoli. Overall, tax receipts are $1.7 billion higher than anticipated by the state Division of the Budget’s (DOB) January projections.

Tax receipts for the month of January totaled $11.4 billion. This is $550.5 million above last year and $1.7 billion above DOB’s latest projections.

Author(s): Thomas DiNapoli

Publication Date: 18 February 2021

Publication Site: Office of the New York State Comptroller

Truncating Bar Graphs Persistently Misleads Viewers

Mary Pat Campbell

Link: https://www.sciencedirect.com/science/article/abs/pii/S2211368120300978?dgcid=author

DOI link: https://doi.org/10.1016/j.jarmac.2020.10.002

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Abstract:

Data visualizations and graphs are increasingly common in both scientific and mass media settings. While graphs are useful tools for communicating patterns in data, they also have the potential to mislead viewers. In five studies, we provide empirical evidence that y-axis truncation leads viewers to perceive illustrated differences as larger (i.e., a truncation effect). This effect persisted after viewers were taught about the effects of y-axis truncation and was robust across participants, with 83.5% of participants across these 5 studies showing a truncation effect. We also found that individual differences in graph literacy failed to predict the size of individuals’ truncation effects. PhD students in both quantitative fields and the humanities were susceptible to the truncation effect, but quantitative PhD students were slightly more resistant when no warning about truncated axes was provided. We discuss the implications of these results for the underlying mechanisms and make practical recommendations for training critical consumers and creators of graphs.

Author(s): Brenda W. Yang, Camila Vargas Restrepo, Matthew L. Stanley, Elizabeth J. Marsha

Publication Date: 16 February 2021

Publication Site: Journal of Applied Research in Memory and Cognition

Lightfoot urges Pritzker to veto firefighters pension bill

Mary Pat Campbell

Link: https://chicago.suntimes.com/2021/2/18/22290071/chicago-firefighters-pension-bill-unfunded-liabilities-martwick-lightfoot-governor-pritzker-veto

Excerpt:

A bill that awaits Gov. J.B. Pritzker’s signature would boost pensions for about 2,200 active and retired firefighters, but Mayor Lori Lightfoot wants the governor to veto it. Sun-Times file photo

Mayor Lori Lightfoot is urging Gov. J.B. Pritzker to veto a bill boosting pensions for thousands of Chicago firefighters, arguing it would saddle beleaguered taxpayers with perpetual property tax increases and cripple a pension fund dangerously close to insolvency.

The bill, introduced by state Sen. Robert Martwick, D-Chicago, a Lightfoot political nemesis, passed in the waning hours of the lame duck session and awaits Pritzker’s signature or veto.

It removes the “birth date restriction” that prohibits roughly 2,200 active and retired firefighters born after Jan. 1, 1966 from receiving a 3% annual cost of living increase. Instead, they get half that amount, 1.5% — and it is not compounded.

Author(s): Fran Spielman

Publication Date: 18 February 2021

Publication Site: Chicago Sun-Times

When it comes to pensions, we have crises of leadership on more than one front

Mary Pat Campbell

Link: https://www.chicagobusiness.com/greg-hinz-politics/when-it-comes-pensions-we-have-crises-leadership-more-one-front

Excerpt:

I’m not saying solving Illinois’ pension mess will be easy. It won’t. But dead silence surely won’t solve it. Voters hired Pritzker to fix problems. On this huge problem, he’s been a sad failure.

Which leads to pension story No. 2: That’s the utter turmoil that seems to have overtaken one of the larger public retirement systems in the state, the $11 billion Chicago Teachers’ Pension Fund, which receives a nice chunk of Chicago homeowners’ property tax payments every six months.

When I last looked at the fund in October, its executive director and other key officials had just resigned, one commissioner had been censured by other board members, and board President Jeffery Blackwell was publicly complaining of an agency “culture of intimidation, intentional misinformation, discrimination, slander, misogyny, fear-mongering, blatant racism, sexism and retaliatory actions.” But interim Executive Director Mary Cavallaro said in a statement there was no reason to worry, and that “the fund is committed to ensuring financial stability, operational efficiencies and seamless service to members.”

Well, guess who now has resigned—with a blast? That would be Cavallaro. “I can no longer tolerate the chaos and toxicity of the boardroom, along with the vile disrespect and insults directed toward me, the leadership team and the hard-working staff of the fund by certain misinformed trustees,” she said in a letter to the board. “I have grave concerns about the ability of fund operations to sustain the continued loss of key staff members because of bad trustee behavior and poor board governance.”

Author(s): Greg Hinz

Publication Date: 18 February 2021

Publication Site: Crain’s Chicago Business

The pension front

Mary Pat Campbell

Link: https://capitolfax.com/2021/02/19/the-pension-front/

Excerpt:

There’s really nothing to strongly disagree with. The city has routinely moved the birth date restriction, but it’s been done in a way that the costs are not funded, which pushes the fund closer to insolvency. This bill would essentially take that routine practice, make it official and force the city to finally pay for it.

Author(s): Rich Miller

Publication Date: 19 February 2021

Publication Site: Capitol Fax

Retiree says state is offering inadequate settlement in LIUNA pension dispute

Mary Pat Campbell
Retiree says state is offering inadequate settlement in LIUNA pension dispute

Excerpt:

Since ABC6 first reported last month on discrepancies in pension payments to hundreds of union members in Rhode Island, a retired worker has come forward saying that if the state doesn’t pay him and others what they believe they are owed, there could be a lawsuit.

“They took a lot of money away from us,” the member, who wants to remain anonymous, told ABC6. He is a retired state worker with more than 30 years on the job. He says he’s missing 12 years of wages.

He says after months of back and forth with the Laborers’ International Union of North America (LIUNA) and the RI Department of Administration, a settlement was offered to members for 9 years of lost wages.

Author(s): Alana Cerrone

Publication Date: 19 February 2021

Publication Site: ABC 6 Rhode Island News

NY State Comptroller DiNapoli Statement on McDonald’s Agreement to Tie Executive Compensation to Diversity, Workforce Management

Mary Pat Campbell

Link: https://www.osc.state.ny.us/press/releases/2021/02/ny-state-comptroller-dinapoli-statement-mcdonalds-agreement-tie-executive-compensation-diversity?utm_source=weekly%20news&utm_medium=email&utm_term=municipal%20audit&utm_content=20210221&utm_campaign=fiscal%20oversight&section=body

Excerpt:

New York State Comptroller Thomas P. DiNapoli, trustee of the New York State Common Retirement Fund, released the following statement today in response to McDonald’s decision to disclose workforce diversity data and tie executive compensation to the company’s ability to foster inclusion and ensure improved human capital management. As a result of McDonald’s new policy, DiNapoli and the Fund are withdrawing their shareholder proposal that had asked the company to connect executive compensation to the company’s management of ESG and workforce issues. The Fund owned 1,674,102 shares in McDonald’s valued at $359,229,000 as of Dec. 31, 2020.

…..

“It’s my hope that other companies follow McDonald’s example, particularly those corporations where New York state’s pension fund has filed similar shareholder proposals seeking greater attention to, and respect for, their human capital. 

Author: Thomas DiNapoli

Publication Date: 18 February 2021

Publication Site: Office of the New York State Comptroller

Pa. Treasurer Joe Torsella tried to reform the state’s biggest pension funds. Then he lost his job.

Mary Pat Campbell

Link: https://www.inquirer.com/business/joe-torsella-treasurer-pa-pennsylvania-psers-pensions-teachers-lost-harrisburg-20210220.html

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Excerpt:

As treasurer, Torsella automatically got a board seat on Pennsylvania’s two massive pension plans, the $60 billion PSERS for public school employees and the $30 billion SERS for state workers. (The letters stand for the Public School Employees’ Retirement System and the State Employees’ Retirement System.)

Everything about them is supersized. Together, they serve more than 700,000 retired and working Pennsylvanians. Taxpayers pay $7 billion into the funds annually, up from near zero in the early 2000s, and five times what employees contribute. Despite that, the plans are hugely underfunded — collectively short $65 billion.

Their health is heavily dependent on their investments. Once on board, Torsella asked to see investment contracts and fee deals with outside money managers — and was told they were not public. It was as if they were somehow more confidential than a town paving contract or a sanitation worker’s salary.

Author(s): Joseph N. DiStefano

Publication Date: 19 February 2021

Publication Site: Philadelphia Inquirer

Spain Counts on Citizens to Buy Into Revolution for Pensions

Mary Pat Campbell

Link: https://finance.yahoo.com/news/spain-counts-citizens-buy-revolution-050000160.html

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Excerpt:

Spain is hoping to entice people to prepare for retirement with a voluntary saving plan as it tries to wean them off relying solely on state pensions.

The aim is to set up a fund run by private investment companies by the end of the year, offering Spaniards an affordable alternative to supplement their public pension. But unlike some other countries, the system will require workers to opt in rather than being automatically enrolled.

“We think there’s a group of middle- and low-income Spaniards who will be interested in a boost to their lifetime savings, which can complement their public pension,” Jose Luis Escriva, the social security minister for Spain’s Socialist-led government, said in an interview.

Author(s): Jeannette Neumann

Publication Date: 19 February 2021

Publication Site: Yahoo Finance

Boston Fed chief predicts strong economic recovery begins in 2nd half of 2021 if vaccine reaches enough people

Mary Pat Campbell
Boston Fed chief predicts strong economic recovery begins in 2nd half of 2021 if vaccine reaches enough people

Excerpt:

While the ongoing rollout of the COVID-19 vaccine is promising, federal and state policymakers, as well as business leaders, will have to act to reverse an economic decline that has exacerbated longstanding inequalities, the president of the Federal Reserve Bank of Boston warned Friday.

Speaking at Yale University’s Economic Development Synmposium, Eric S. Rosengren predicted the national and regional economies could see significant gains in the second half of 2021, provided the vaccine distribution is successful.

“The disparate economic outcomes for some individuals and groups during the pandemic have further exacerbated longstanding issues in our economy,” Rosengren said. “The uneven nature of this downturn has highlighted the need to rebuild the economy in a more inclusive way.”

Author(s): Keith Phaneuf

Publication Date: 19 February 2021

Publication Site: CT Mirror