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.
Economy and Public Workforce Under Strain
This week’s economic headlines paint a troubling picture for government workers and the economy as a whole. Federal government employment has fallen by nearly 100,000 jobs since January, according to the Bureau of Labor Statistics, and the latest jobs report shows the weakest August job growth since 2010. At the same time, jobless claims surged to their highest level in almost four years.
The economic situation is worse in areas with high concentrations of laid-off government workers. Prince George’s County, Maryland, which relies on federal and higher education jobs, now has 23,000 fewer jobs than before the pandemic in 2019.
In New York City, government vacancies remain stubbornly high, with more than 17,000 public positions unfilled even as the city celebrates overall job growth. These losses in the public sector workforce not only stretch services thin but also weaken pension systems that rely on steady contributions from active employees.
Strong Returns Across the States
Despite workforce pressures and ominous economic signs ahead, many public pension funds reported solid investment returns for the most recent fiscal year.
- – Arkansas Public Employees posted an 11.1% return.
- – Missouri’s Public School and Education Employee plan earned 10.6%.
- – Connecticut reported a 10.1% return, slightly above its benchmark.
- – South Dakota’s SDRS was also highlighted for standing out among peers with firm performance.
- – Santa Barbara County Employees returned 9.8%.
These numbers underscore the resilience of well-managed pension funds, especially in a volatile economic climate.
Connecticut Eyes the WNBA
In addition to strong returns, Connecticut Governor Ned Lamont has signaled interest in using state pension investments to support a new WNBA team. While details are still developing, the proposal raises important questions about how pension funds balance fiduciary duty with broader economic development and community impact. Supporters point to the potential for long-term growth and local benefits, while skeptics caution that retirement security must remain the priority. This debate reflects the broader role public pensions can play as both financial anchors and civic investors.
Tim Hill: “Protecting the financial future of American workers and retirees should transcend politics.”
In his role as President of the Alliance for Prosperity and a Secure Retirement, retired Phoenix Firefighter Tim Hill, the former director of the International Association of Fire Fighters Pension Resources Department, penned an OpEd this week under the headline, “Stop making retirement a political battlefield.”
At the end of the day, this debate is not about ESG, climate change, or any other political agenda of the moment. It’s about the retired public servant in Ohio, the teacher in Florida, and the small-business owner in Arizona who simply want to know their savings will be there when they need them most. Protecting the financial future of American workers and retirees should transcend politics. It’s an issue Republicans, Democrats, and independents alike should be able to agree on.
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.