Race for Better Rate of Return

In the last three years, the vast majority of states have either cut new worker’s pension benefits or required a longer term of service to reach the same benefit level all in an effort to reduce the money states will owe employees when they retire.

According to a Stateline.org article, some states and local governments are attempting to boost their pension outlook by trying to boost the investment return of their holdings by changing the management structure of public pension plans.

The article explains that 60% of public retirement trust funds comes from investment earnings so increasing earnings can increase a fund’s stability.

New York City is attempting to institute a new pension management plan, which needs approval by the state legislature before being put into action.