Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
The presentation makes a compelling argument for the Joint Select Committee on Deficit Reduction ("Super Committee") to "Go Big" rather than going small.
For more info, visit http://crfb.org/go-big.
Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
The presentation makes a compelling argument for the Joint Select Committee on Deficit Reduction ("Super Committee") to "Go Big" rather than going small.
For more info, visit http://crfb.org/go-big.
The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
The Greater Pittsburgh Nonprofit Partnership hosted its 2011 Semi-Annual Membership Meeting on June 22, 2011. Ron Kramer from Schneider Downs presented on the potential changes to charitable deductions. Members Laura Maines, Bernadette Turner, and Dave Coplan provided a PA budget update, an update on our three committees' work, and an introduction to our 2012 dues changes, respectively. Thanks to all, including our Chair, Colleen Fedor and President, Diana Bucco for leading the meeting.
On June 14, 2010, Health & Medicine Policy Research group (HMPRG) hosted a forum, “The State’s Fiscal Crisis: Changing Our Collective Response.” With over 70 attendees, the forum explored the impact of the State’s budget and recent cuts on health and human services in Illinois. Participants heard from panel speakers about how we might collectively respond to the crisis and ensure responsible and adequate funding for education, health, and human services in Illinois. Materials from the forum can be found on the HMPRG website (www.hmprg.org)
AEGON takes a closer look at one important reason for providing pensions – to incentivize employees to perform better and to raise employee commitment.
Lincolnshire Hospital that was taken offline for four days due to a ransomwar...David Sweigert
Misconfigured firewall blamed for hospital ransomware infection
Northern Lincolnshire and Goole NHS Foundation Trust blames "a misconfiguration of the firewall" for a cyberattack which resulted in 2,800 appointment cancellations.
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The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
The Greater Pittsburgh Nonprofit Partnership hosted its 2011 Semi-Annual Membership Meeting on June 22, 2011. Ron Kramer from Schneider Downs presented on the potential changes to charitable deductions. Members Laura Maines, Bernadette Turner, and Dave Coplan provided a PA budget update, an update on our three committees' work, and an introduction to our 2012 dues changes, respectively. Thanks to all, including our Chair, Colleen Fedor and President, Diana Bucco for leading the meeting.
On June 14, 2010, Health & Medicine Policy Research group (HMPRG) hosted a forum, “The State’s Fiscal Crisis: Changing Our Collective Response.” With over 70 attendees, the forum explored the impact of the State’s budget and recent cuts on health and human services in Illinois. Participants heard from panel speakers about how we might collectively respond to the crisis and ensure responsible and adequate funding for education, health, and human services in Illinois. Materials from the forum can be found on the HMPRG website (www.hmprg.org)
AEGON takes a closer look at one important reason for providing pensions – to incentivize employees to perform better and to raise employee commitment.
Lincolnshire Hospital that was taken offline for four days due to a ransomwar...David Sweigert
Misconfigured firewall blamed for hospital ransomware infection
Northern Lincolnshire and Goole NHS Foundation Trust blames "a misconfiguration of the firewall" for a cyberattack which resulted in 2,800 appointment cancellations.
Are you looking game development company for your next Casual Games i.e Puzzle,Endless Runner,Card,Arcade.
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En la presente diapositiva se presenta el Mapa conceptual sobre la GERENCIA DE PROYECTOS, la cual se presenta como una disciplina que organiza y administra recursos para alcanzar un fin
In case you missed it, here is the recap on how the Cook County Land Bank plans on using data and analytical tools to help acquire, manage and transfer properties.
The NFI are responsible for detecting misconduct or fraud across the private and public sector. They have recovered millions of pounds of fraudulent money. This presentation from the IDEA User Groups explains how to use IDEA to catch and prevent fraud.
This presentation will discuss about the payment terms available for Amaresa 2 properties.
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Social Security, Medicare and your RetirementBlain Bogar
This seminar will explain how Social Security and Medicare work, what is being done to ensure their survival, and how you can help clients and prospects plan for their retirement and medical care so that they do not have to rely heavily on either program.
Rollovers: the impact it can have on your retirementAndrew Leeman
While leaving your money in your former employer's plan may be an option, one way to gain more control of your assets is to consolidate your retirement funds into a single individual retirement account (IRA). Email me with any questions: aleeman@ft.newyorklife.com
2. 2
Meeting Agenda
• Resolution Number 313151
• Update on Springfield legislation Senate Bill 1673
• Richard Ingram, Executive Director – Illinois Teachers Retirement Fund
• Cash Balance Plans
• What are they?
• Current Plan Comparison
• Public Speakers
Bridget Gainer, Chair – Cook County Pension Committee
Cook County Commissioner – Tenth District
3. 3
Senate Bill 1673 (Amendment #5)
House Sponsor – Mike Madigan
Senate Sponsor – Kwame Raoul
• Two major components:
• Consideration:
• Tier I employees and Tier I retirees elect 1 of 2 options that will impact
benefit calculations and eligibility for retiree health insurance.
• Creation of the Cash Balance Plan
Bridget Gainer, Chair – Cook County Pension Committee
Cook County Commissioner – Tenth District
4. 4
SB 1673 Gives State Employees &
Retirees Two Options To Consider
Option 1 Option 2
Who Employees and Retirees Employees and Retirees
COLA 3% Simple; delayed COLA that 3% Compounded; no delay in
will begin the January 1st receiving
following the earliest of age 67
or the 5th anniversary of the
annuity start date
Health care Eligible to participate in their Not eligible to participate in
applicable retiree healthcare applicable retiree healthcare
plan. plans.
Pay Increases No changes Increases in pay to Tier 1
employees and Tier 1 retirees
who return to active service will
NOT increase the member’s
pensionable earnings.
Link to bill: http://www.ilga.gov/legislation/97/SB/09700SB1673ham005.htm
Bridget Gainer, Chair – Cook County Pension Committee
Cook County Commissioner – Tenth District
5. 5
Cash • Three types of contributions to
pension:
Balance • Employee contributes % of salary
• Pay Credit: Employer contributes % of an
individual’s salary into a notional account.
Plans
Illinois General Assembly via
• Employer contribution no longer tied to a multiplier or percent
of total payroll.
SB1673 included a cash • Interest credit. Employee’s notional account
balance plan.
receives a credit based on market yield. There is
• Employees first typically a floor: minimum amount, usually tied to
participating on or after
July 1, 2013 are
automatically enrolled in
30 year T-bonds and a ceiling: the minimum + a
the newly created Cash share in the upside if there are higher returns.
Balance Plan.
• Members, including Tier
1 employees who elect
• At Retirement:
Option 1, may elect to
make additional • Employee can purchase an annuity in the private
contributions into an market
optional Cash Balance
Plan at 2.0% of pay.
• Employee can take lump sum or opt to receive a
monthly annuity.
Bridget Gainer, Chair – Cook County Pension Committee
Cook County Commissioner – Tenth District
6. 6
Comparing Types of Pension Plans
Defined Benefit vs. Defined Contribution vs. Cash Balance
Defined Benefit Defined Contribution Cash Balance
• A defined benefit pension • Defined Contribution • A cash balance plan is a
plan guarantees an plans or 401k plans. The “hybrid” DB/DC plan. In a
employee a monthly employer and employee typical cash balance plan,
pension benefit annuity both contribute an a participant's account is
upon retirement until their established amount into credited three ways, the
death. Many defined the employee’s defined EE contribution, a "pay
benefit plans allow for the contribution plan. credit" (such as 5 percent
pension benefit to be of compensation from his
transferred to a surviving • The employee then works or her employer) and a
spouse or dependent, but with an investment guaranteed annual interest
this varies from plan to manager to invest his
plan. funds. When the employee • If investment returns were
retires he receives higher than assumed for a
• The retirees are paid by a whatever monies have specific period of time a
pension fund which accumulated in the plan. formula allows for
consists of money from Withdrawals are limited employee’s to receive an
the employer and only by tax provisions. increased investment
employee. The pension credit.
fund is generally invested
by an asset manager • Participant can decide to
whose main responsibility take annuity or lump sum
is investment and growth payout at retirement.
of the fund.
Bridget Gainer, Chair – Cook County Pension Committee
Cook County Commissioner – Tenth District
7. 7
Comparing Types of Pension Plans
Defined Benefit vs. Defined Contribution vs. Cash Balance
Defined Benefit Defined Cash Balance
Contribution
Employee Yes Yes Yes
Contributions
Employer Yes Yes Yes
Contributions
Retiree Yes (Cook Not usually (out TBD
Healthcare County) of pocket)
Provided
Who Carries Employer Employee Employee &
Investment Risk? Employer
Who Carries Employer Employee Employee
Longevity Risk?
Bridget Gainer, Chair – Cook County Pension Committee
Cook County Commissioner – Tenth District
8. 8
County (via OpenPensions.org) vs. State via SB1673 vs. City
Type of Plan Funded Changes Employee COLA Retirement Retiree
Status For? Contribution Age Healthcare
Goal
Cook County Maintains a 80% by Current 1% increase Changes Retirement Retiree
via defined benefit 2045 employees from a 3% age healthcare
OpenPensions plans and retirees *Based on the compounding increased 5 will be made
.org statutorily to 3% simple years to 65 permanent,
*Highlights required or ½ CPI over a 10 will continue
portability multiplier the year period, to be
County would Delay COLA starting in subsidized
pay an to earlier of 2013 (or 55 between
additional age 67 or 5 with 30 years 45% – 50%
$15mm years after of service)
retirement
City Maintains a Current 5% five year Freezing Increase 5 City has
defined benefit employees phase-in COLA for ten years to 67 committed to
plan and retirees Increase (1% a years. partner with
year) retirees on
*Highlights health care
portability provisions
State Maintains a 100% by Current No Change Changes No Change Employees and
SB 1673 defined benefit 2043 employees from a 3% Retirees will
Amendment #3 plans and retirees compounding choose
to 3% simple between
accepting a
Creates a cash or ½ CPI
reduced COLA
balance plan and staying in
Delay COLA the healthcare
to earlier of plan or keeping
age 67 or 5 the same
years after system, but not
retirement being eligible
*Creates over $5.2 billion dollars worth of savings for Cook County within 15 years and $65-$85 billion in savings for the State of Illinois by 2045 for healthcare.