| New investment strategy works only if teachers benefit
Eager to boost income so that it can boost teachers' monthly pension checks, the board of the Teacher Retirement System of Texas has decided to plunge into riskier investments with the potential for higher profits, as well as greater losses. Financial experts say the move makes sense and actually reduces the overall risk of loss to the $109 billion fund. We hope the bet pays off. We also hope that it won't give the Legislature one more excuse not to do more to help retired teachers, whose pension checks average about $1,800 per month. .
Do's and dont's of risk management leading up to retirement
We know that the world is different to what it was in our parents' day, but how many of us realise how much has changed in the last five or 10 years? In dozens of countries, massive transfers of risk have occurred from institutions to individuals. Governments and employers have reduced their social security and defined benefit retirement provision, passing the responsibility to individuals. The same is true in South Africa, where the shift from defined benefit to defined contribution has been more rapid than in most countries. Managing one's retirement saving is an attractive proposition to many, but far more difficult than people realise, particularly as one approaches the key moment in the saving cycle - the conversion of savings to income. Many retirement funds provide a generic investment approach that should suit all members - well, at least to some extent.
County proposes employee pay bump
Berry Gordy and Janie Bradford once wrote "The best things in life are free, But you can keep 'em for the birds and bees, Now give me money." Utah County employees might agree. The Utah County Commission began working on a proposal to give county employees a 12 percent pay bump, in an effort to keep them. The discussion, though only in its preliminary stages, would allow county employees flexibility in how they are compensated. Under the proposal, they could take their retirement plans -- 401a or 457 -- and shift that money into direct compensation. 401a plans are retirement plans very similar to 401k plans; however, they are for certain government or public school employees. Similarly, 457 plans deal with governmental employee retirement. The proposed policy would also add several new pay grade steps in the system.
Senate committee: corrupt politicians should forfeit retirement
RALEIGH, N.C. (AP) -- A bill moving through the General Assembly would make elected officials forfeit their retirement pay if they're convicted of corruption or election fraud charges. A Senate committee today reported favorably on the measure, which lists a series of felonies that could cost lawmakers their pensions. The bill was inspired by the scandal surrounding former House Speaker Jim Black, who resigned his seat in February and entered pleas to federal and state corruption charges. The pending bill wouldn't affect Black's case, or that of his associate, Representative Michael Decker, who admitted accepting bribes. Because it's unconstitutional to change the rules retroactively, the committee modified the bill to make it apply to any offenses committed after July First of this year. The measure will now go for a vote in the full Senate.
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