Houston Chronicle Publishes Op-ed on the Risk in 401(k)s

Conservatives' 401(k) push is big risk for public-sector employees

By Max Patterson

It used to be that being "conservative" meant being cautious about untested change, preferring tinkering instead of complete overhaul to institutions that developed over time to serve particular public needs.

If the current Texas Legislative session is any guide, that definition no longer applies to self-identified "conservatives" who seek to dismantle traditional retirement plans for police, firefighters and municipal employees. Their push toward 401(k) style plans is a radical approach with unproven benefit.

San Antonio Express News Publishes Op-ed by TEXPERS

The Moving Targets of Pension Fund Opponents

By Max Patterson, For the Express-News

April 30, 2017

Texas Sen. Paul Bettencourt wants the public to believe that statewide retirement systems are in trouble because of low investment returns and that the solution will cause taxpayers to foot the bill. The truth is statewide retirement systems and some local pension systems are underfunded because for years, the state and some cities did not fund the plans they approved.

A Texas Association of Public Employee Retirement Systems, or TEXPERS, survey showed that about 25 percent of our members did not receive their full actuarially required contribution in 2016. Public employers now see this is a problem, but some people still want to blame the investment market.

TEXPERS Salutes El Paso Firemen and Policemen's Pension Fund for 20-year Returns

TEXPERS recognized the El Paso Firemen and Policemen’s Pension Fund for maintaining its ranking as one of the best in Texas in the closely-watched measure of 20-year investment returns. The El Paso public safety employee pension system maintained an 8.21 percent average yearly performance over the past 20 years according to survey results in TEXPERS’ annual "Report on the Asset Allocation and Investment Performance of Texas Public Employee Retirement Systems" for the period ended September 30, 2016. TEXPERS Executive Director Max Patterson said, "The El Paso Firemen and Policemen’s Pension Fund has certainly excelled in enhancing the profitability of its members and city sponsor’s contributions. The pension fund’s focus on the long term has made it a trusted steward within El Paso, but it is truly an exemplary system for all of Texas." Tyler Grossman, executive director of the El Paso Firemen and Policemen's Pension Fund, said, “We take our fiduciary responsibility to the members of our Fund very seriously. One of our most important roles is investing our members’ money wisely. Our returns reflect our robust investment policy which requires balancing risk control and due diligence. This enables us to make sound decisions in the management of the Fund."

TEXPERS Legislative Update

5 THINGS YOU NEED TO KNOW ABOUT PENSION LEGISLATION

The State Affairs committee of the Texas Senate held a public hearing Monday, March 20, and discussed five pension bills. Here's a recap: 1. POLITICS VS. VOTER APPROVAL Senate Bill 151 authored by Sen. Paul Bettencourt, R-Dist. 7, is seeking to require funds to obtain voter approval before issuing pension obligation bonds. Some fear the bill would politicize pensions.  A representative with the Houston Police Officers Union testified before the committee and said if the pension obligation bonds were to be presented to voters and fail to gain support, it would be because of politics. The committee's chair, Joan Huffman, R-District 17, however, said she believes voters would support bonds if a case were made. TEXPERS confirmed its opposition to the bill.  The bill was voted out of committee and moves to the full Senate.

Will Americans see cuts to pension benefits?

Americans made it clear during the recent national election that they wanted to see a change in Washington, D.C. With a possible cut in pension benefits, many people feel they may not see that change. 

Read more.

TEXPERS renews accreditation for mandated trustee training program

The Texas Association of Public Employee Retirement Systems recently renewed as a Texas Pension Review Board’s Minimum Education and Training Program accredited sponsor of core content training  and continuing education for trustees and administrators.

The Pension Review Board is an independent state agency that oversees and reviews state and local government retirement systems and accredits training programs for trustees and administrators of public retirement systems. The PRB announced TEXPERS as a renewed accredited sponsor of core and continuing education activities Feb. 27.

The PRB mandates that a new trustee or administrator of a public pension system must take seven hours of training during their first year of service. Topic areas include fiduciary matters, governance, ethics, investments, actuarial matters, benefits administration, and risk management.

During a trustee or administrator’s subsequent years of service, they are required to take an additional four hours of continuing education every two years. Education includes these core content areas or non-core areas: compliance, legal and regulatory matters, pension accounting, custodial issues, plan administration, Texas Open Meetings Act, and Texas Public Information Act. 

TEXPERS developed its Basic Trustee Training class to fulfill the requirements of the PRB’s Minimum Education and Training Program, or MET. It is offered at least twice a year before TEXPERS’ conferences.

In addition to the basic training, the association periodically offers advanced trustee training to help them meet the PRB’s continuing education requirements. Click here to learn more.

Some say public officials serving time shouldn’t receive pensions

Texas government officials convicted on corruption charges are still eligible to collect public pensions, but not everyone thinks they should be able to benefit from their retirement. Sen. Van Taylor, R-Plano, authored Senate Bill 14 that includes a provision that would prohibit convicted criminal lawmakers from receiving their pension benefits.

Jackie Wang of The Texas Tribune found several “former elected officials with prior felony convictions who are potentially collecting retirement payouts.” In an email exchange with The Texas Tribune, Taylor said the idea that criminal politicians continue to receive government pensions while serving time is “appalling.”  

Some people are questioning if the bill itself is ethical, however. Is it fair to limit a person’s retirement benefits if the crime was not related to the government official’s duties? Although a person cannot collect Social Security while in prison, other retirement benefits of private citizens are not revoked if they are convicted of a crime.

And consider this: A veteran receiving retired military pay while in prison also is able to collect federal pensions, but with some exceptions, according to Miltary.com.  Veterans who are convicted of disloyalty to the United States such as espionage, treason, and sabotage can lose their benefits. In other words, the charges must be related to their service to be revoked.

Some say the same should be for government officials – only revoke benefits if criminal convictions are related to the public official’s office. What do you think?