http://pensionfundrescue.com Fri, 18 Feb 2011 20:31:11 +0000 http://backend.userland.com/rss092 en Last year in April, I recommended to Illinois Senators that they propose a Bill to allow Article 3 & 4 Police and Fire funds to invest in corporate debt obligations.  The purpose is to significantly increase the interest income on pension fund fixed income investments.  Corporate debt obligations typically offer ... http://pensionfundrescue.com/corporate-debt-investments-for-illinois-pension-funds/  "Big Trouble in River City"...State and Municipal FinanceIn Meredith Willson's "The Music Man," Professor Harold Hill (Today's Meredith Whitney and Governor Chris Christie of NJ) steps off the train in River City, Iowa, and persuades the locals that their community is on the "road to the depths of degradation" (Today...Financial ... http://pensionfundrescue.com/pension-funds-in-deficit-big-trouble-in-river-city/ Pension Update: Predictions for the Future...Not Thru a Rose Colored Lens The economy and politics are at an important crossroads at this point in time.  There is no solid evidence of a sustainable economy recovery in place, and in November, the balance of political party power will shift from the election outcomes.  The ... http://pensionfundrescue.com/pension-update-predictions-for-the-future-not-thru-a-rose-colored-lens/ Here is a development that is long overdue.  Illinois police and fire pension funds are typically investing about 60% of fund assets into US government bonds and Agency debt, with the balance in common equities. Illinois public pension funds have an estimated $60 Billion in unfunded pension liabilities.  Pension payouts are ... http://pensionfundrescue.com/new-illinois-bill-would-allow-corporate-bonds-in-public-pension-funds/ The stock market has topped as US employment growth stalls.  There is little in catalyst for a quick US economic recovery this year or next.   Zero US short term interest rates are having virtually no effect at expanding bank lending to small and midsize businesses.  So, with the stock market played ... http://pensionfundrescue.com/illinois-pension-funds-need-higher-investment-income/ Since my Jan 2010 post,  I watch daily the articles streaming through the press of under funded public pension plans...massive under funding.  For Illinois, the under funding is in the range of  40 to 60% deficits, or $60 to $100 Billion in dollar amount.  The blame for this under funding is ... http://pensionfundrescue.com/illinois-pension-fund-meltdown-lets-increase-fund-returns-and-fix-it/ Under funded public pension funds across the US are seeing national attention.  Pension liability payouts for police, fire and municipal workers have been rising from earlier retirement ages, high annual pension pay outs from higher "jump off" employee salaries, COLAs, and extended benefit payout periods at 100% pensions to surviving spouses ... http://pensionfundrescue.com/use-high-dividend-stock-portfolios-to-cure-pension-fund-deficits/ Public Pension Funds Facing a Slow Growth Economy With the economy in recession, the Federal Reserve has lowered short term interest rates to Zero, which has lowered 5 year Treasuries to 2% interest return.  Further, the benchmark of common stock mutual funds, the S&P 500, has been “flat in performance for ... http://pensionfundrescue.com/public-pension-funds-facing-a-slow-growth-economy/ The State of Illinois is in a financial meltdown due to falling tax revenue collections, budget expenditure growth, and rising public pension fund deficit liabilities…How do we fix it? On Nov. 12 the Pew Center on the States, a venerable public issues think tank, pronounced Illinois as one of the nation’s ... http://pensionfundrescue.com/solving-illinois-public-pension-fund-deficits/ We watch and listen to the talking-heads on CNBC each day and see the confusing opinions going out to the public on the economy.  Investment strategists are generally feeling that this is a “Typical Recession” we are in, and the recovery should be “Typical”.  A Typical recovery from a recession takes, on ... http://pensionfundrescue.com/what%e2%80%99s-ahead-for-our-economy-and-public-pension-funds/