Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. This is the news you need to know in the fight for a secure retirement.
NPPC News
As Americans navigate a tumultuous political, economic, and social landscape, NPPC continues to advocate for dignified, secure retirement plans for public servants from coast to coast–because the promise of guaranteed lifetime income following a career of service is one aspect of the American dream that we believe can still come true.
Check out our latest blog to preview the upcoming legislative battles we’re facing in 2026.
New York Unions Seek Reforms to the State’s Tier 6 Retirement Plan in 2026
Several major labor unions, including the United Federation of Teachers, are making a big push this year to improve retirement benefits for employees in the lowest tier of the retirement system.
“Tier 6 is driving away new teachers,” said Maggie Joyce, a teacher and UFT union leader in the Bronx.
Tier 6 covers most public employees hired on or after April 1, 2012. The Cuomo era reforms raised the retirement age, eliminated overtime earnings from pension calculations, increased employee contributions, and imposed higher penalties for early retirement.
“Tier VI has become an obstacle to recruitment and retention, causing staffing shortages that threaten the quality of public services such as education, health care, transportation, and emergency response, which are essential to our communities,” stated New York State AFL-CIO president Mario Cilento.
Private Equity Investments Concern Washington State Treasurer
Washington state treasurer Mike Pellicciotti expressed this week that the state’sheavy reliance on private equity could spell trouble for the well-funded public pension system.
At around 28%, Washington has about double the national average invested in private equity. While supporters of PE say that the rewards outweigh the risks, critics cite the lack of clear performance and risk benchmarks among the reasons why public funds should exercise caution when utilizing underregulated investment methods.
“We need to continue to have success and not take unnecessary risks that could undermine all aspects of our financial foundation as a state,” Pellicciotti told The Seattle Times.
Private equity investments can deliver lucrative returns, but the glaring lack of regulatory oversight, labor-conscious governance, and overall transparency is cause for concern.
Advocates Scrutinize New Jersey Pension Investments in Plantir
The New Jersey State Investment Council heard from immigration advocates this week, who are demanding that lawmakers divest state pension funds from Palantir Technologies, a company that U.S. Immigration and Customs Enforcement (ICE) uses to identify and track individuals for deportation.
Divestment demands are not new to public pension funds. New Jersey is no stranger to balancing prioritizing fiduciary returns and hearing the political demands of constituents, public workers, and stakeholders. The Garden State has already stopped investing in companies that boycott Israel and those with financial ties to Russia and Iran–a testament to the increasingly blurred line between politics and fiscal responsibility.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.