Public Meetings: Draft MassDOT & MBTA Capital Investment Plan (CIP) FY2019–2023

From MassDOT: CAPITAL INVESTMENT PLAN Public Meeting Schedule The Draft MassDOT & MBTA Capital Investment Plan (CIP) Update for fiscal years 2019–2023 is a multi-billion dollar program that makes long-term, multi-modal investments across the Commonwealth. The CIP covers all MassDOT highway and municipal projects, regional airports, rail and transit, including MBTA and Regional Transit Authorities […]

Pension Protection for State Workers

Recently read an article on the pro business website “MarketWatch” where one of their columnist was questioning why the pension fund for Police and Firefighters in Detroit was being threatened by the impending bankruptcy proceedings when the Detroit Police and Firefighters Pension Fund was better funded (77%) than most state pension funds (including the MA […]

The 8.25%: PRIT’s long-term actuarial target rate of return

In recent months, Senator Brownsberger has engaged in discussions with government officials regarding the actuarial target rate of return for the Massachusetts Pension Reserves Investment Management Trust fund (PRIT). The PRIT fund is the state’s pension fund, established by the legislature in 1983 to address the state pension system’s unfunded liability. PRIT’s long-term actuarial target […]

what are reasonable assumptions about long term returns of pension plans?

“…the current [pension] shortfall is attributable to the recent stock market plunge…” Hmm…first of all, the S&P 500 has doubled from its March 2009 low and is now within 40 points of its all time high (1,565 on Oct. 9, 2007).  So we are past the plunge. Second, the problem of poor returns now stretches […]

A “contrary” view on the pension fund problems

Via Brad Delong‘s blog: It argues, roughly, that the current shortfall is attributable to the recent stock market plunge, that pension funds, because of their size and long-term outlook, need not and should not invest like individuals, and that the size of the shortfalls, as a share of future state receipts, is not that alarming. […]