Resisting diversity could lead to termination

Link: https://www.pionline.com/esg/resisting-diversity-could-lead-termination

Excerpt:

Shannon M. O’Leary cited lack of diversity as a big part of the reason her foundation cut ties with three managers in the past year or so.
Foundations argue that scrutiny of investment consultants and money managers lagging on the diversity front will only move the needle so far. For firms failing to meet diversity goals set by foundations, the best recourse is to fire them and reallocate capital elsewhere, sources say.

Author(s): Danielle Walker

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

Tontines garnering a new wave of interest

Link: https://www.pionline.com/retirement-plans/tontines-garnering-new-wave-interest

Excerpt:

Strategies could help answer growing concerns about how to solve rising longevity risks

Dean McClelland said the OECD’s mention of tontines is a sign of growing acceptance.


Live longer could become the new retirement advice in coming years amid growing interest in tontines — investment pools where participants share longevity risks by distributing the assets of those who die as “mortality credits” to surviving participants.

Author(s): DOUGLAS APPELL

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

House panel to weigh multiemployer pension reform bill

Link: https://www.pionline.com/legislation/house-panel-weigh-multiemployer-pension-reform-bill

Excerpt:

Legislation to help struggling multiemployer pension funds is to be considered this week by a key House panel as part of a COVID-19 relief measure.

The House Ways and Means Committee is expected to start marking up a package of pandemic relief measures Wednesday, including one aimed at stabilizing pensions for more than 1 million participants in multiemployer plans approaching insolvency.

The pension section of the proposed Emergency Pension Plan Relief Act of 2021 is cited as the “Butch Lewis 4 Emergency Pension Plan Relief Act of 2021.”

It is based on a previously proposed multiemployer pension relief bill named for retiree Butch Lewis that called for a federal loan program for struggling plans and more resources for the Pension Benefit Guaranty Corp. to help troubled plans through partitions.

Author(s): Hazel Bradford

Publication Date: 9 February 2021

Publication Site: Pensions & Investments

Lawmakers vote to revamp Kentucky Teachers pension plan

Link: https://www.pionline.com/pension-funds/lawmakers-vote-revamp-kentucky-teachers-pension-plan

Excerpt:

The Kentucky House of Representatives voted to approve a bill that would move participants in the Kentucky Teachers’ Retirement System, Frankfort, to a hybrid plan.

The House voted 68-28 in favor of the bill, which creates a tier for teachers hired after Jan. 1, 2022.

Rep. C. Ed Massey sponsored the bill because the $21.6 billion pension fund “has a huge unfunded legacy,” he said in a telephone interview.

Author(s): ROB KOZLOWSKI

Publication Date: 8 February 2021

Publication Site: Pensions & Investments

CalPERS expecting to announce new CIO this quarter

Link: https://www.pionline.com/pension-funds/calpers-expecting-announce-new-cio-quarter

Excerpt:

Even as CalPERS officials were facing the dual challenges of managing investments and remote work during a pandemic, it was moving ahead with hiring a new CIO and expects to name one in the first quarter, a top official said.

Author: Arleen Jacobius

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

Investors ready for change as Democrats take control

Link: https://www.pionline.com/washington/investors-ready-change-democrats-take-control

Excerpt:

While the COVID-19 pandemic and its economic impact present the most pressing challenges, Democratic control of Congress and the White House could also spur action on issues ranging from climate change to scrutiny of private equity practices.

…..

Mr. Neal’s first bill introduced in the new 117th Congress addresses the multiemployer pension crisis that he said “has only worsened” in the COVID-19 economic downturn. A similar proposal was introduced by members of the House Education and Labor Committee, whose chairman, Robert C. “Bobby” Scott, D-Va., said the pandemic could cause as many as 180 more multiemployer plans to become insolvent, adding up to 300 plans facing failure. Both leaders are urging that the proposed Emergency Pension Plan Relief Act of 2021 be attached to a COVID-19 relief measure now before Congress.

…..

Potential legislation is expected to build on the panel’s climate action plan calling for clean energy tax credits and jobs initiatives, investments in water infrastructure and research into land and ocean climate solutions, among other ideas.

Author: Hazel Bradford

Publication Date: 25 January 2021

Publication Site: Pensions & Investments

New Mexico PERA executive director taking new position

Link: https://www.pionline.com/pension-funds/new-mexico-pera-executive-director-taking-new-position

Excerpt:

Wayne Propst, executive director of the $16.5 billion New Mexico Public Employees Retirement Association, Santa Fe, will be leaving on Feb. 12 to join the staff of New Mexico state Sen. George K. Munoz, Mr. Propst said in an email.

Author: Arleen Jacobius

Publication Date: 22 January 2021

Publication Site: Pensions & Investment