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Bailout Suggests It’s Time to Rethink Multiemployer Pensions
President Biden announced last Thursday that the government would give $36 billion to bail out the multiemployer Teamsters Central States Pension Fund. It is…
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Comments on Department of Labor Pension ESG Rule
At the end of last year, the Department of Labor (DOL) published a notice of proposed rulemaking seeking to rewrite rules on pension fund…
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Can Pensions Be Saved from Political Mismanagement?
The Department of Labor is currently working on a new rule that would give pension fund managers greater leeway in considering non-financial criteria when…
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Blog
Bailout Suggests It’s Time to Rethink Multiemployer Pensions
President Biden announced last Thursday that the government would give $36 billion to bail out the multiemployer Teamsters Central States Pension Fund. It is…
Blog
Comments on Department of Labor Pension ESG Rule
At the end of last year, the Department of Labor (DOL) published a notice of proposed rulemaking seeking to rewrite rules on pension fund…
Blog
Can Pensions Be Saved from Political Mismanagement?
The Department of Labor is currently working on a new rule that would give pension fund managers greater leeway in considering non-financial criteria when…
Blog
A Note on Politicized Investment Policy
Two weeks ago, the U.S. Department of Labor (DOL) announced a change in its pension rules. DOL announced that it intends to incorporate political…
Blog
Cheers to Department of Labor for Protecting Retiree Investments
At the end of last month the Department of Labor published a new notice of proposed rulemaking on the investment choices that private pension fund…
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How Accounting Reform Can Help Address Public Pension Underfunding
By deferring compensation, in the form of pensions, and pushing those costs well into the future, politicians can gain favor with government employee unions, which…
Blog
Underfunded Public Pensions Put Future Taxpayers on the Hook
One of the most well-known and enduring lessons of public choice economics is the dynamic of concentrated benefits and diffuse costs. Well-organized groups have both…
Blog
California Supreme Court Upholds Pension Reform, Punts on ‘California Rule’
On Monday, March 4, the California Supreme Court, in a unanimous decision, upheld a major provision in the state’s 2012 pension reform legislation, but punted…
Blog
Pension Obligation Bonds No Panacea for State Budget Liabilities
Illinois has a new governor and Chicago will soon have a new mayor—and the same old underfunded public pensions. Inheriting a predecessor’s debts is never…
Blog
Warren Buffett Warns about Unfunded Public Pension Liabilities—Again
Would you invest in a state with large unfunded pension liabilities? Warren Buffett likely wouldn’t. In a long interview with CNBC this week, the famed…
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Real-World Effects of Pension Debt
Debates over public pension finance often have an abstract quality, taking place outside most people’s immediate concerns. Yet, the real-world effects can be quite tangible.
Blog
Wishful Thinking Is No Way to Address Public Pension Shortfalls
More state revenue but less money for public services? That’s the situation in which states with large unfunded pension obligations can find themselves if they…
Blog
Could Janus Ruling Open the Door to Pension Reform?
This week, the U.S. Supreme Court heard oral argument in case Janus v. AFSCME, which could significantly impact unions representing government employees. A ruling in…
Blog
In Illinois, Public Pension Funding Cannot Keep up with Pension Benefits’ Growth
Public pension shortfalls result from too little money being paid into the pension funds. Or so government employee unions and their political allies would have…
Blog
End of ‘California Rule’ Can Open Path for Pension Reform
Ending the 'California Rule' won’t mean that pension reform will become easy—union opposition will remain as fierce as today—but it’s a needed start.
Blog
The Dangerous Posturing of New York’s Fossil Fuel Pension Divestment
New Yorkers should be wary of Mayor Bill de Blasio's decision to divest fossil fuel energy stocks from the city's public employee pension plan.
Blog
Pension Bailout Bill Would Put Taxpayers on the Hook for Billions
Policymakers can help underfunded pension plans meet their payout obligations without bailouts.
Blog
Pension Liabilities Bite in the Present, Too
Politicians should close underfunded public employee pension funds to new enrollees and offer new hires other options, such as defined contribution or hybrid plans.
Blog
Missouri’s $5 Billion State Pension Underfunding Shows Results of Faulty Accounting
Government pension managers should calculate the state contribution using a more realistic rate-of-return estimate.
Blog
RealClear Radio Hour: Political Disasters in Science and Economics
This week on RealClear Radio Hour, Marc Edwards and Dan Liljenquist recount politically induced disasters from the perversion of science to the pension crisis.
Blog
Unfunded Public Pension Obligations Grow to $5.6 Trillion
State public pension plans are underfunded by nearly $5.6 trillion nationwide, according to a new American Legislative Exchange Council (ALEC) study.
Blog
Air Traffic Control Reform Opponents Still Miss the Big Picture, Repeat Errors
Air traffic control is in dire need of reform and modernization, and there is a great plan in the House FAA bill to do just…
Blog
PBGC’s Perverse Incentives Undermine Multiemployer Pensions
For years, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures private sector defined benefit (DB) pension plans, has been severely underfunded below…
Blog
Illinois Pension Reform that Can Pass State Supreme Court Muster
When you’re in a hole, stop digging. That seems like such a simple concept that it shouldn’t need stating, but in the area of public…
Blog
Illinois’ Narrow Road to Pension Reform
On March 24, the Illinois Supreme Court struck down a Chicago pension reform bill that sought to address the city’s considerable pension shortfall. In…
Fox News
Don’t let Team Obama ‘protect’ your retirement account they way it has ‘protected’ your health care
Taking a victory lap as the Supreme Court vindicated ObamaCare, the Obama administration is busy preparing to apply the paternalistic precepts of the health care…
Blog
“I’ll Gladly Pay Future Generations for my Pension Check Today”
“I’ll gladly pay you Tuesday for a hamburger today” was the trademark utterance of J. Wellington Wimpy, the mooching character from the old Popeye cartoons.
Blog
CalPERS: It Came from Sacramento
“Heads I win; tails you lose.” That essentially sums up the relationship the California Public Employee Retirement System (CalPERS) has long enjoyed vis-à-vis the Golden…
Blog
Moody’s $2 Trillion Public Pension Shortfall Estimate Highlights Need for Better Pension Accounting Practices
In a new report, Moody’s estimates the nation’s largest pension funds face a $2 trillion taken together. That’s a lot of money. But as significant…
Blog
CalPERS Abandons “Hail Mary” Investment Strategy – About Time
CalPERS knows when to fold ‘em. The California Public Employee Retirement System, the nation’s largest public pension fund (and one of the world’s largest), announced…
Watchdog Wire
Report: Governments Mask Pension Debt, May Put Taxpayers At Risk
The Competitive Enterprise Institute's report, "Understanding Public Pension Debt" was featured by Nevada's Watchdog Wire: A new report once again sheds light…
Free Beacon
Report: Government Accounting Hides Debt
Article by Bill McMorris Your state may not be as fiscally solvent as politicians have led you to believe, according to a new…
Blog
Obama Claim Spurious; Labor Unions Furious; New Ranking Curious
Coauthored with Alex Bolt. President Barack Obama spuriously claimed, "These so-called right-to-work [RTW] laws, they don't have anything to do with economics," when he futilely…
Study
An Interstate Analysis of Right to Work Laws
There is compelling evidence suggesting a substantial, significant, and positive relationship between economic growth in a state and the presence of a right to work laws. This paper…
The National Review
How the High Costs of Public-Sector Pensions Affect States’ Economic Growth
Today my colleagues and I on the labor team at the Competitive Enterprise Institute released the first installment in CEI’s new three-part series ”The High…
Pensions and Investments
Public Policy Group Calls For Risk-Free Public Pension Discount Rate
State governments could provide a clearer picture of public pension debt as it relates to state budgets by using a low-risk discount rate, said a…
Blog
CEI Ranks States’ Pension Debt and Analyzes the Consequences
Today, the Competitive Enterprise Institute released the first installment of CEI’s new three-part series, The High Cost of Big Labor, which looks at the economic…
Study
Understanding Public Pension Debt
Today, many states face budget crunches due to massive pension debts that have accumulated over the past two decades, often in the billions of dollars. State…