Welcome to this week’s edition of This Week in Pensions! This is the news you need to know in the fight for a secure retirement.
Before you dive into our top stories from this week, check out stories of public employees helping their communities.
Here are the top stories from this week:
New Hampshire posts 27.1% return for fiscal year by Rob Kozlowski and Ohio Pension Systems Report Robust Returns for Fiscal 2021 by Michael Katz. These two articles in Pensions & Investments and Chief Investment Officer, respectively, discuss the good news for two different states this year. In New Hampshire, the New Hampshire Retirement System exceeded its benchmark of 25.4% for the 2021 fiscal year, and instead posted a 27.1% return. In Ohio, all six public retirement plans reported investment returns over 26%, with the Highway Patrol Retirement System (HPRS) reporting the highest return of 34.4%.
Older NJ voters support making huge yearly pension plan payments by David Matthau. This year, New Jersey Governor Phil Murphy chose to fully fund the pension system payment, which hadn’t been done in over two decades. Despite the sticker shock some pension opponents like to use to “prove” that pension plans are expensive and unsustainable, a Fairleigh Dickinson poll done in partnership with AARP shows that many older voters aren’t fooled by this rhetoric. According to the poll, “73% of New Jersey voters over the age of 50 say that the state should continue making these full pension payments.” The states that run into the most trouble with underfunded pension systems are the ones who choose to consistently pay only a portion of the actuarially required contribution, or ARC payment, every year. By choosing to fully fund their pension system, New Jersey is prioritizing public employees and honoring their lifelong contributions.
Be sure to check back next week for the latest news in the fight for a secure retirement!