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CalPERS’ private equity fees under the microscope
Investments in private equity often have high fees associated with them, with the promise of providing higher returns. CA Assembly Bill 2833 seeks to require that pension plans acquire a more detailed accounting of fees charged by private equity firms before investing in them. Read more: http://www.latimes.com/business/la-fi-pe-disclosure-20160706-snap-story.html
Public employees paying more into U.S. pensions, uptrend seen extending
Public pension employee contributions are on the rise nationwide in an effort to stem increasing employer pension costs. Investment returns are hard to predict, and regulatory constraints make it difficult to reduce benefits, so one of the few remaining ways to combat increasing employer costs is to increase employee contributions. Read more: http://www.reuters.com/article/us-usa-pensions-idUSKCN0ZF2FF
States aim to fill pension gaps with “auto IRAs”
Several states are considering creating automatic IRAs to help bridge the gap for employees without an employer-sponsored retirement plan. Although many of these people could open IRAs on their own, the statistics show that very few do. Participation would likely be much higher in systems that require opting out, rather than opting in. Read more: http://www.cbsnews.com/news/states-aim-to-fill-pension-gaps-with-auto-iras/
Calpers Names Marcie Frost CEO
Calpers Names Marcie Frost CEO. “The nation’s largest pension system, CalPERS manages a pension fund of $301 billion. The Sacramento-based system has 2,870 employees and a budget of $1.7 billion to serve 1.7 million members in its retirement system.” Read more: http://www.bizjournals.com/sacramento/news/2016/07/15/calpers-hires-washington-state-pension-executive.html
America isn’t saving enough for retirement. Can that be fixed before it’s too late?
Several factors are contributing to retirement uncertainty for many Americans, including the political climate surrounding Social Security’s precarious financial position, the exchange of defined benefit plans for opt-in 401(k) style plans, and longer lifespans. Read more: http://www.latimes.com/business/la-fi-retirement-savings-plans-20160627-snap-story.html