Public pensions

The nation's fourth-largest city will have new officials at the helm of its government and finances for the first time in eight years.

West Virginia reduced its pension debt burden by 90% from 2000 to 2021, according to a recent report from the Pew Charitable Trust.

Recommendations from an actuary on the city's police and fire pensions come amid a rising unfunded liability and uncertainty over the use of pension bonds.

Funds invested into risky private equity and real estate could flow into bonds

The total unfunded pension liability for all 50 states is expected to be $1.3 trillion for fiscal 2023, according to a Reason Foundation analysis.

The city, which issued POBs in 2005, is awaiting recommendations from an actuary on how to deal with a $3 billion unfunded liability in its public safety fund.

The Attorney General's office found the firm complies with a 2021 state law banning contracts with companies that "discriminate" against the firearm industry.

The rating agency cited the Illinois county's accumulated reserves, as well as required pension contributions for the move.

For the three-month period ending June 30, the fund's investments returned about 3.08%.

Treasurer Dale Folwell said the law protects retirees' money from being used for what he called Wall Street's "wacktivist" agenda.

"Recent months have been trying for investors," said State Comptroller Thomas DiNapoli, "and there is no doubt that challenges lie ahead, with concerns over a recession and potential interest rate increases, but the state pension fund is well-positioned to weather these storms."

While all four of Chicago's weakly funded pension funds hit a milestone by posting modest increases in their funded ratios in 2021, they lost ground in 2022 due to investment losses driving up the city's pension burden to $35.4 billion

Government says it is unsure how it will be able to make debt and pension payments.

The Police and Fire Retirement System lacks authority to shift to a 20-year amortization of unfunded legacy liabilities from the 30-year term laid out in the city's bankruptcy exit plan, according to a judge's ruling that eases one fiscal pressure point for the city.

The task force expects to "form sub-groups to address specific pension issues and dedicated revenue as part of a comprehensive and balanced approach."

The fiscal 2024 budget proposal leans on federal funds, better-than-expected tax collections, and a drawdown on reserves to bankroll a wide array of capital work and a boost to state employee salaries.

Houston is one of the largest U.S. cities to set up a trust to help fund non-pension retiree benefits such as healthcare.

The report provides the first step in assessing what level of benefit enhancement is needed before further state action is taken on Tier 2 pension benefits.

"It's a quiet revolution," said Reason Foundation's Robert Poole.

To date, 332 of the 357 funds have transferred approximately $9.1 billion in assets to the consolidated fund, with most holdouts participating in the lawsuit.