Newsletters 2017

January 2017 INSIDE THIS ISSUE Majority of Public Pension Plans Have Made Recent Reforms How long do U.S. retirees live compared to peers in other countries? Public Pensions Put the Squeeze on Fees in 2016, Besting Mutual Funds SEC Scrutiny Of Public Pension Advisers A Top Priority Puerto Rico Catholic School Teachers Win Round in Pension Suit Impact of the Proposed IRS Mortality Tables and Strategies to Reduce its Effects Returns strong in 2016 despite scary beginning New Spectrem Group Report Analyzes Attitudes, Behaviors and Concerns of Recent and Long-Term Retirees in America PBGC STICKS ITS HEAD OUT OF THE WATER AND ISSUES RFI REGARDING HYBRID (TWO-POOL) MULTIEMPLOYER PENSION PLANS Small Companies Have a Big Retirement Problem

February 2017 INSIDE THIS ISSUE Hogan proposes 401(k)-style retirement savings plan for Md. state employees Despite risks, public pensions put faith in long-term returns Connecticut governor asks towns to contribute toward teacher pension costs Michigan governor eyes lower assumed investment rate for pensions Dallas Police and Fire Pension Backs Cutbacks to Avoid Collapse CFP Board, other fiduciary advocates prep for fight to save DoL rule Taking Phased Retirement Options to the Next Level Wilshire TUCS, Northern Trust report gains above 7% in 2016 for investment plan universes U.S. House puts brakes on Philly plans to aid small businesses with retirement savings PBGC Adds Credit Deterioration, Cash-Flow Decline to Early Warning Factors It Monitors

March 2017 INSIDE THIS ISSUE How Refinancing Debt Can Help Pensions Public Pensions and the Assets That Could Sustain Them How PSERS Pa. Teachers’ pension fund beat market indexes in 2016 CalPERS Forced to Declare Southern California Agency in Default of Pension Obligations Governor’s plan to shift pension funding gives pause to local officials FASB changes presentation of defined benefit costs Fed Rate Hike Isn’t Big News for Pension Plans, Yet Lump sum de-risking in 2017 Options for Social Security Cash Balance Challenge Defeated By Bank of America

April 2017 INSIDE THIS ISSUE As the Clock Ticks, Senate Stalls on State-Run Retirement Plans Scranton council hears pension board reps on reforms Deficit in Dallas: How One of the Fastest-Growing U.S. Cities Ended Up With Billions in Debt Retired police officers, firefighters face cuts; Health care benefits of pensions take a hit to aid long-term outlook Palm Beach adopts changes to general employees’ retirement benefits Is 70 the New 65? Why Are U.S. Households Claiming Social Security Later? IRS Extends Deadline to Adopt DC Pre-Approved Plan and Apply for Determination Letter Until May 1 Employee Retirement Readiness Tops Not-for-Profit Plan Sponsors’ Concerns; Survey finds more than half worry about employees running out of money in retirement; Employers may help improve retirement outcomes by adding guaranteed lifetime income options PENSIONERS MAY LIVE LONGER, RESEARCH FINDS

May 2017 INSIDE THIS ISSUE Older-worker rate highest since 1962 19 percent of Americans 65 and over still working U.S. life expectancy varies by more than 20 years from county to county Christie Vetoes Plan to Spin Off Police and Fire Pensions Closing a Pension Plan Increases Costs for Taxpayers Contributions to Public Pensions Experience Significant Gains in 2016 Impact of Mortality Change on U.S. Single Employer Pension Plan Funding United States: Department of Labor’s New Fiduciary Rule Will Go Into Effect June 9th Risk Mitigation & Early Warning Questions and Answers Kentucky retirees fighting to keep their pensions World’s Major Economies to Come up $400 Trillion Short on Retirement Savings

June 2017 INSIDE THIS ISSUE In Texas, Some Rare Good News About Cities With Pension Woes 4 Reasons Why Puerto Rico’s ‘Bankruptcy’ Process Matters to U.S. Residents Ohio Public Pensions Suffer Cuts Pennsylvania governor signs pension reform bill California’s boldest pension reform: five years in Fitch: Pension Impact Adjusted in U.S. Public Finance Criteria Retirement Assets Total $26.1 Trillion in First Quarter 2017 Thought Mortality Was Dead? Considerations for Pensions Given the IRS’s Delay in Implementing RP-2014 Justices side with religious hospitals in pension dispute Teamsters to Propose Fix for Pensions, but Will It Work?

July 2017 INSIDE THIS ISSUE States Get Creative on Pension Funding Maryland state pension fund to lower rate of return A FIRST LOOK AT ALTERNATIVE INVESTMENTS AND PUBLIC PENSIONS: Pension Plans Had a Great Year, But Retirees Likely Won’t Benefit From It No Change for Social Security Combined Trust Fund Reserves Depletion Year Says Board of Trustees: Disability Fund Improves by Five Years IRS Delay in Implementing New Mortality Tables Affects Pension Liability Valuation The Kline-Miller Multiemployer Pension Reform Act of 2014 Corporate Employers Flee Pensions With Gap Topping $375 Billion Phased Retirement Gets a Second Look Treasury Announces Steps to Wind Down my RA Program

August 2017 INSIDE THIS ISSUE Northern Trust Press Release Puerto Rico governor signs pension reform law U.S. Postal Service warns of $6.9B pension default Three Pension Funds Sue Major Banks in Stock Loan Case New Study Finds Public Employees Overwhelmingly Choose Pensions as Retirement Plan over Individual 401(k)-Type Accounts Pension Sponsors Would Reap Savings on Longevity Table Delay Employers cut contributions to retirements by a quarter; The biggest driver is the decline of traditional pensions replaced by stingier 401(k)-style plans LIMRA Secure Retirement Institute: First Half 2017 Annuity Sales Reach Lowest Level in 16 Years The American Working Conditions Survey Finds That More Than Half of Retirees Would Return to Work 600,000 state residents could join state retirement-savings plan

September 2017 INSIDE THIS ISSUE PENSION PANEL AGREES TO REVIEW PLAN’S DETAILS Public Pension Assets Employees, retirees may see pension cut; Largest public system in Ohio looks to improve finances.; COLUMBUS BUREAU Retirement Assets Total $26.6 Trillion in Second Quarter 2017 This Missouri City Just Switched to a Pension Plan sponsors ask for more analysis before mortality tables are updated Active Participant Reduction Reportable Events PBGC Premiums Driving DB Plan Sponsors to Fund, De-Risk Economic optimism and increasing sales may fuel growth in retirement benefits; Millennial business owners more focused on retirement plans Westinghouse tries to calm fears about its pension

October 2017 INSIDE THIS ISSUE Social Security Announces 2.0 Percent Benefit Increase for 2018 Americans Are Retiring Later, Dying Sooner and Sicker In-Between Ohio PERS proposes reducing retirees’ COLAs Virginia Retirement System pension plans lower unfunded liabilities by $1.1 billion The Nation’s Retirement System: A Comprehensive Re-evaluation Is Needed to Better Promote Future Retirement Security The Society of Actuaries Publishes Annual Mortality Improvement Scale Update, MP-2017 Warning! Increased costs ahead: IRS issues final rule and other guidance on mortality tables for defined benefit plans NEPC: Funded Status Improves for Corporate and Healthcare Defined Benefit Plans 63 percent of defined benefit retirement participants in plans open to new participants 2018 Limitations Adjusted As Provided in Section 415(d), etc. Notice 2017-64

November 2017 INSIDE THIS ISSUE Basic Legal Protections Vary Widely for Participants in Public Retirement Plans Twenty-One Percent of Investment Managers Plan to Lower Fees UPDATE: This is how changes in pensions can lead to changes in worker behavior CalPERS considers upping fixed-income investment, lowering volatility OregonSaves Serves as a Test for State-Sponsored Auto-IRAs PBGC single-employer, multiemployer deficits moving in opposite directions 2017 End of Year Plan Sponsor “To Do” List Qualified Retirement Plans U.S. Department of Labor Releases Advance Copies Of Form 5500 Annual Return/Report for 2017 In-Depth: What to Expect from 2018 PBGC Premiums, Mortality Rates Pension Plan Limitations for 2018