May 2020
Texas Public Pension News
The staff of the Texas Pension Review Board is developing new guidelines that would require systems and their sponsors to move more quickly to identify actuarial problems and then develop Funding Soundness Restoration Plans to correct them. 


During a May 7 meeting, the actuarial committee of the Board asked staff to develop the new guidelines as well as suggest tighter legislative triggers requiring Funding Soundness Restoration Plans, or FSRPs. Both changes may wind up as recommendations to the 2021 Texas Legislature. 

www.texpers.blogspot.com
Texas' stay-at-home order expired April 30, and although not everything is back open for business, office buildings are allowed to reopen on May 18, according to the next set of reopening dates released by Gov. Greg Abbott's office.

www.texpers.blogspot.com
Membership Magazine
Due to stay-at-home orders, TEXPERS' membership magazine was not printed and mailed this quarter. However, an expanded and digital-only edition was created for our members. If you missed our newest edition in your email box, here it is.

Click here or on the magazine cover at left to access your digital flipbook.
TEXPERS thought leaders offer insight on the US credit market
In response to extreme market volatility resulting from the COVID-19 pandemic, the Texas Association of Public Employee Retirement Systems hosted a conference call with top investment experts to provide its members with insight into the US Credit Market. 

The conference call, held free to our members who registered, occurred on April 16 and provided insight and an early indication of what will happen in the broader economy. TEXPERS invited investment experts to share their thoughts regarding possible opportunities and discuss the current state of the markets in US High Yield, Bank Loans, Convertible Bonds, Asset-Backed Securities, Direct Lending, and Distressed Debt. 

www.texpers.blogspot.com
Mark Your Calendar
TEXPERS' 31st Annual Conference is rescheduled for San Antonio, Texas!
Due to the pandemic, TEXPERS' Annual Conference is rescheduled for Aug. 16-18 at the Grand Hyatt Hotel in San Antonio, Texas.

The conference was previously set to be held this month in Galveston, Texas. Event registration will reopen in June. If you previously registered to attend the conference, your registration will automatically transfer to the San Antonio event. Click here to read why TEXPERS' board of directors decided to reschedule the conference.

Attending TEXPERS' conference is one of the best things you can do for your service to a public employee retirement plan as an administrators, trustee or investment manager. By attending sessions, listening to speakers, and talking with your peers, you'll have the opportunity to learn about industry trends, gain some new skills, and maike all kinds of new connections. Some of you may even register to attend pre-conference trustee training classes scheduled for Aug. 15 to fulfill some state-mandated minimum education requirements.

The Annual Conference replaces TEXPERS' Educational Forum, previously set for the same date and location.
Education, Research, and Studies
  Study documents beneficial ripple effects due to retirees’ spending their pension checks 
The economy grows by $1,372 for each $1,000 of pension fund assets. While it sounds small, the size of pension assets—$4.3 trillion in 2018—means that the impact of this growth is greatly magnified. Read more in the National Conference on Public Employee Retirement Systems's updated research paper, Unintended Consequences: How Scaling Back Public Pensions Puts Government Revenues at Risk .

www.ncpers.org
State and local governments lost nearly 1 million jobs in April: US Bureau of Labor Statistics
The U.S. Bureau of Labor Statistics reported that state and local governments lost an estimated 981,000 jobs in April 2020, a loss equivalent to approximately 5 percent of its February 2020 total, and with over 80 percent of the losses affecting local governments. 

www.nasra.org
Market decline worsens the outlook for
public plans: research brief
If markets remain at their current levels until June, most state and local pension plans will end fiscal year 2020 with negative annual investment returns, reduced asset values, lower funded ratios, and higher actuarial costs.

www.slge.org
U.S. Public Pension News
Public pension-fund losses set
record in first quarter
Public pension plans lost a median 13.2% in the three months ended March 31, according to Wilshire Trust Universe Comparison Service data released May 12, slightly more than in the fourth quarter of 2008. March’s stock market plummet led to the biggest one-quarter drop in the 40 years the firm has been tracking.

www.wsj.com

Note: Subscription may be required to access article.
April market rebound helps public pensions recover half of Q1 losses
Milliman Inc.'s latest analysis shows funding for public pensions in April rebounded significantly from the first quarter of 2020, with an aggregate 5.92% investment return for the month – welcome news after Q1's dismal -10.81% asset performance. 

www.khq.com
City of Denver retirees ordered to repay
$11 million in pension benefits
A CBS4 Investigation has learned that about 40 retirees from the city of Denver - widows, widowers and their beneficiaries - have been ordered to repay a total of $11 million in retirement benefits.

www.denver.cbslocal.com
Economic & Investment News
Texas has billions in its rainy day fund, but legislators say they won't use it until January
As  Texas’ economy reels  from a monthlong shutdown of commerce statewide,  unprecedented unemployment  and  falling oil prices , some Texans are calling on officials to tap into the state’s  Economic Stabilization Fund  that has billions of tax dollars officials have been saving for years.

www.texastribune.org
Extreme cuts in store for Texas budget
Scott Braddock, editor of Quorum Report, joined The Chad Hasty Show to discuss the latest state news, including the state of Texas' budget negotiations and what the legislature will be considering in the budget process. Click the link below to listen to the budget discussion, which starts around the 12:11 mark.

www.kfyo.com
Pension demands put local governments in
a jam, Moody's says
Moody’s is more downbeat than ever on local governments’ fiscal stability, which is weighed down by the pandemic, as pension demands and other fixed requirements expand while tax revenue shrinks.

So Moody’s Investors Service has changed its outlook for them this year to negative from stable. Cities and towns will see costs for debt and pension obligations gobbling up a larger share of their revenues, the ratings agency said in a report.


www.ai-cio.com
Aging & Retirement
Social Security recipients may be in for a
rude awakening later this year
Social Security beneficiaries might not receive much of a cost-of-living adjustment next year — and some say recipients might not get anything at all.

www.marketwatch.com
Coronavirus pandemic forces retirement savings to take backseat, study shows
As the coronavirus pandemic continues to send shockwaves through the U.S. financial world, a new study shows Americans are concentrating less on their retirement savings as other priorities take precedence.

www.foxbusiness.com
Among older adults, COVID-19 has highlighted vulnerabilities — but also some opportunities
Even the quickest scan of statistics related to the coronavirus pandemic makes it painfully obvious the disease has hit some communities and segments of the population much harder than others. And to an expert on aging and social policy such as Washington University’s Nancy Morrow-Howell, those troubling realities come as no surprise.

But as the crisis shines fresh light on longstanding disparities on a multitude of fronts, along with the everyday impacts of systemic racism and ageism, Morrow-Howell also has some hope for real improvement — particularly when it comes to a deeper understanding of older adults as the diverse individuals that they are.

www.news.stlpublicradio.org
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About Us 
The Texas Association of Public Employee Retirement Systems (TEXPERS) is a statewide voluntary nonprofit association that provides education and legislative advisory services to the trustees, administrators, professional service providers and employee groups that manage the retirement money of police, firefighters, municipal and district employees in cities across Texas.