The news explained
With $26 billion in unfunded liabilities and inadequate benefits for workers, it is undeniable that…
On Jan. 5, 2025, President Biden signed the Social Security Fairness Act, that eliminated the Windfall…
There are at least 21 state and local public pension funds that could be affected by the recently approved…
A key feature of teacher pension plans is that they offer guaranteed income for life. But unless the…
In 2023, U.S. public pension funds remain fragile. According to Equable Institute’s State of Pensions 2023…
Most state and local workers in the United States receive retirement benefits, usually in the form of a…
In the U.S., public pension vesting periods vary widely by state. There are many reasons why states might…
A 403b plan is a form supplemental savings available to teachers in the U.S. How much income do you need in…
A key feature of defined benefit pension plans is that they offer guaranteed income for life. But unless the…
Guaranteed lifetime income is one of the best things that come with having a pension plan. But pensions…
A key feature of teacher pension plans is that they offer guaranteed income for life. But unless the…
California state and local government agencies offer a range of different defined benefit pension…
Teacher retirement systems in 2022 are Fragile. There are 63 retirement systems offering benefits to…
Defined benefit plans are a common way to provide retirement income. The most typical defined benefit plan is…
Retirees with a pension from state or local governments were made a promise: guaranteed income for the rest…
In the first half of 2022, U.S. public pension funds have weathered a bear market, geopolitical conflict, and…
There are lots of factors that new, prospective K–12 teachers have to consider when entering the education…
The Windfall Elimination Provision, or WEP, reduces but does not eliminate some worker’s Social Security…
Like the Windfall Elimination Provision, the Government Pension Offset reduces Social Security benefits.…
Article
June 8, 2022
Who Is Most Likely to Have Their Social Security Benefits Reduced by the Windfall Elimination Provision?
The largest group affected by the Windfall Elimination Provision, or WEP, is state and local government…
Article
June 6, 2022
New Report: Will You Be Affected by the Windfall Elimination Provision and/or Government Pension Offset?
With the new Windfall Elimination Provision and Government Pension Offset, public employees, like teachers,…
Kentucky has made changes to retirement plan provisions for its Teachers’ Retirement System (KTRS), as…
Alabama has made changes to retirement plan provisions for its Teachers’ Retirement System (ALTRS), as…
Florida has made changes to retirement plan provisions for the Florida Retirement System (FRS) Investment…
U.S. public pension funding in 2021 experienced strong investment returns in the most recent fiscal…
Statewide national Pension benefit trends look different than they did at the beginning of the century, or…
When evaluating their individual retirement plan in the Retirement Security Report, public workers should…
Milwaukee’s apathy toward the management of its retirement system—specifically regarding its —has…
Ben & Jerry’s decision not to sell their ice cream in Israeli-occupied West Bank and east Jerusalem…
Every state manages its pension funds for state workers a little differently. States also vary in how much…
U.S statewide pension funds entered the COVID-19 recession profoundly weaker than they were…
A guaranteed return plan builds retirement income for participants by creating notionally personal accounts…
In a hybrid retirement plan, your employer provides access to two compatible benefit structures at the same…
In a defined contribution plan, also known as a cash balance plan, you and your employer each contribute a…
Equable Perspectives
April 17, 2020
Equable Institute Warns of COVID-19 Impact on Public Pension Funds for The Hill
Today, The Hill featured an op-ed written by Equable Institute‘s Executive Director Anthony Randazzo on…
The impacts of Covid-19 won’t be known for quite some time, but already we’re seeing the pandemic…
There is no silver bullet to solve America’s hidden education funding cuts. State and local leaders in…
For years, the country’s public pension plans have faced a yawning gap between what they owe and what they…
Download The Full Report | Hidden Education Funding Cuts: Methodology The Hidden Education Funding Cuts…
Paying $3 million to reduce pension liability is among spending recommendations that follow higher than…
The Florida Retirement System (FRS) offers employees the option of two retirement plans. The Investment Plan…
Your pension is your monthly slice of the pie for life – and Funded Status is the recipe for making sure…
Article
February 4, 2020
Gov. Beshear’s Budget Plan Would Mean Tens of Millions Less Than Expected for KY Retirement Systems
Gov. Andy Beshear’s budget plan would result in Kentucky Retirement Systems getting tens of millions of…
Figuring out how to manage a public pension system is hard, complicated work. Pension board trustees have to…
The Ohio Public Employees’ Retirement System (OPERS) voted last week to cut health care benefits provided…
Your pension is your monthly slice of the pie for life – and Funded Status is the recipe for making sure…
The “” is the single most important assumption that pension systems make to ensure they have enough…
The “” is the single most important assumption that pension systems make to ensure they have enough…
Your pension is your monthly slice of the pie for life – and Funded Status is the recipe for making sure…
State and local governments have made promises to people who work for them. These public servants have been…
Most state pension funds are not at risk of running out of money in the next few decades, which is a good…
Public pension plans often have higher education pensions that are better for employees in public K-12…
Not long after Los Angeles’ teachers returned to work after a six-day strike last month, more than 5,000…
The American ideal of a happy, secure retirement is under threat as the economy changes and the financial…
Consider two hypothetical teachers with nearly identical resumes: Ms. Early is 65 years old, and she taught…
Most public workers in America are enrolled in a pension plan. For those who work a full career in education,…
Have you ever wondered how pension contributions work? If you’re a public employee, you make monthly…
Millions of state agency workers, municipal employees, and police and firefighters across the country do not…
More than a million teachers across the country do not participate in Social Security. There are 11 states…
Low interest rate impact on pensions is two fold. While low interest rates help states borrow money to…
American state and local pensions have less than 73% of the assets they need to fund future obligations to…
Teaching in Michigan is about to become a lot more attractive. Recently enacted legislation will improve…
If you only make the minimum payment on your credit card for 13 of the past 15 months, your debt would climb…
Every day, an estimated 10,000 Americans baby boomers retire – and unfortunately many of them will spend…
Funded status measures the dollars a pension fund has received and invested, compared to the pension payments…
Everyone has their favorite moment of realizing the effects of inflation. Just five cents for a bottle of…
Fitch Ratings released a report last week evaluating the asset allocations of the largest public sector…
Article
August 19, 2019
The Growing Costs of Arizona’s State Retirement System are Crowding Out Teacher Pay and Education Finances
The Arizona State Retirement System (ASRS) provides retirement income for nearly 150,000 former teachers,…
For America’s states and local governments to function properly and thrive — that is, to provide…
Myth: More public employees are needed to ensure pension debt gets paid off. Fact: Pension debt is not solved…
Article
August 19, 2019
Pension Myths & Facts: Pension Benefit Value Calculation Is Not Affected by the Assumed Rate of Return
Myth: The assumed rate of return determines the value of your benefits. Fact: The calculation of your pension…
Public pension plan management is often referred to as pension governance. How states manage – or…
It is important that state and local governments pay at least 100% of their (ADC) each year. The ADC is based…
It is important that public sector pension funds receive adequate contributions each year in order to…
What are Unfunded Liabilities for Pension Plans? Pension plans are designed to collect contributions from…
Normal cost is the contribution necessary, when added to investment income, to pay for benefits earned each…
Assumed rate of return is the single most important assumption that pension systems make to ensure they have…
How does a state, or the fund administering pension benefits, make sure it will be able to pay promised…
If you’re like most public workers, you probably have to work five to seven years before you can qualify…
Pension benefits are typically a fixed monthly payment in retirement that is guaranteed for life. Some…
Equable Highlight
What is the assumed rate of return?
The assumed rate of return is the single most important assumption that pension systems make to ensure they have enough funding to pay promised benefits.
Understanding pension systems
Modules
Articles in this module
1. How Pension Benefits Are Calculated
2. How Does Vesting Work?
3. Understanding The Pension Funding Formula
4. What is the Assumed Rate of Return?
5. What is Normal Cost?
6. Unfunded Liabilities (aka Pension Debt)
7. What are Actuarially Determined Contributions?
8. Paying the Pension Bill
9. Funded Status
10. Pension Fund Governance
11. Pension Myths: The Assumed Rate of Return Does Not Determine the Value of Benefits
12. Pension Myths: The Funded Status of Pension Plans Does Not Depend on More Public Employees
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