Weekly Roundup for Trustees, Administrators, and Stakeholders: Key Updates to Note
Welcome to this week’s roundup of essential updates and resources curated specifically for trustees, administrators, and stakeholders in the pension fund and financial governance space. Here are the highlights to keep on your radar:
1. Legislative Advocacy Workshop
The Story: TEXPERS is hosting a Legislative Advocacy Workshop for System Members only. This exclusive event is designed to prepare members to engage effectively with policymakers and advocate for the interests of public pension systems. Participants will learn best practices in legislative outreach and gain insights into upcoming policy initiatives impacting the industry.
Why It Matters: Advocacy is a critical component of ensuring that public pension systems are heard and protected at the legislative level. This workshop equips System Members with the tools and knowledge necessary to influence positive change and safeguard retirement benefits.
Details:
- Title: Legislative Advocacy Workshop
- Date & Time: Feb. 4 and 5, 2025
- Location: Hyatt House Austin/Downtown, Austin, Texas
- Audience: TEXPERS System Members only
- Registration: Click here to register
2. Recruitment & Retention: Public Sector Challenges and Solutions
The Story: Public pension plans and plan sponsors face ongoing recruitment and retention challenges, especially in government and public safety roles. Despite increases in salaries and benefits, these positions remain difficult to fill and keep filled. Join NCPERS for a webinar exploring state and local government hiring trends and strategies to overcome these challenges. The discussion will focus on leveraging total rewards—compensation, benefits, and overall experience—to foster long-term workforce loyalty.
Why It Matters: Recruitment and retention are crucial for maintaining operational continuity and delivering public services effectively. Insights from this webinar will help stakeholders craft programs to attract and retain top talent.
Details:
- Title: Recruitment & Retention: Public Sector Challenges and Solutions
- Date & Time: January 15, 2025, 1:00 PM (CT)
- Platform: Zoom
- Fee: Complimentary
- SHRM Credit: 1 PDC for SHRM-CP® or SHRM-SCP® (Activity ID: 25-277P2)
- Speakers: Zhikun Liu, PhD (MissionSquare Research Institute), David Huffaker (CBIZ), Alex Lanning (CBIZ Employee Benefits)
- Registration: Click here to register
- Recording: Available on-demand
For questions, contact: [email protected]
3. Cybersecurity Threats to Retirement Systems in 2024: What You Need to Know
The Story: Retirement systems face increasing cybersecurity threats as digital vulnerabilities grow. Public pension funds are prime targets due to their valuable financial and personal data. Threat actors are exploiting weaknesses in systems, with ransomware and phishing attacks on the rise. Protecting these systems requires up-to-date strategies and vigilance. Read the full blog on the TEXPERS website to explore the latest insights and recommendations to safeguard your retirement system.
Why It Matters: Cybersecurity is critical to maintaining trust and protecting sensitive data. By staying ahead of emerging threats, trustees and administrators can prevent disruptions and financial losses.
Read More: Cybersecurity Threats to Retirement Systems in 2024
4. Half of Gen X Has No Retirement Planning: Schroders Report
The Story: A recent report by Schroders highlights a concerning trend: half of Generation X (individuals aged 43-58) have not started planning for retirement. This group faces unique challenges, including balancing care for aging parents and supporting children, which has led to delayed savings and financial preparation. The findings underscore the urgency for targeted financial literacy and retirement planning initiatives.
Why It Matters: With Generation X approaching retirement age, the lack of preparation could result in widespread financial insecurity. Trustees and administrators should consider promoting retirement planning tools and educational programs tailored to this demographic to mitigate risks and foster long-term financial well-being.
Read More: Half of Gen X Has No Retirement Planning: Schroders Report
5. Texas Teachers Returns 12.7% in Fiscal 2024
The Story: The Texas Teachers Retirement System reported an impressive 12.7% return for fiscal year 2024, significantly outpacing its benchmarks. The strong performance was attributed to successful investments in both public and private markets, particularly within the real estate and infrastructure sectors. This marks another positive year for one of the nation’s largest pension funds, showcasing the effectiveness of its diversified investment strategy.
Why It Matters: Robust returns like these not only strengthen the fund’s financial position but also reinforce confidence among members and stakeholders. Such performance highlights the value of strategic asset allocation and active management in achieving long-term sustainability.
Read More: Texas Teachers Returns 12.7% in Fiscal 2024
6. WF City Council Passes Ordinance to Increase Fireman Relief Fund
The Story: The Wichita Falls City Council has passed an ordinance to increase contributions to the Fireman’s Relief and Retirement Fund. This move aims to ensure the fund’s long-term sustainability and provide enhanced financial security for local firefighters. The ordinance reflects the city’s commitment to supporting its first responders and addressing pension funding challenges.
Why It Matters: Adequate funding of pension plans is essential for maintaining the trust and well-being of public servants. As a System Member of TEXPERS, this fund exemplifies the proactive measures needed to secure retirement benefits and support local first responders. This decision serves as a proactive measure to bolster retirement benefits and highlights the importance of local government action in strengthening public pension systems.
Read More: WF City Council Passes Ordinance to Increase Fireman Relief Fund
7. Financial Concerns Among Women in Public Service
The Story: A new survey by the MissionSquare Research Institute reveals significant financial concerns among women in public service. Key findings include heightened worries about retirement savings, financial literacy gaps, and challenges in balancing work-life priorities. The survey highlights the need for tailored financial education and support for this critical workforce segment.
Why It Matters: Women make up a significant portion of the public service workforce, and addressing their unique financial concerns is essential for fostering equitable retirement readiness. By understanding and acting on these insights, stakeholders can implement targeted strategies to support women in achieving financial security.
Read More: Significant Financial Concerns Among Women in Public Service
8. State Policymakers Take Steps to Prioritize Effective Pension Funding
The Story: A new article from Pew Trusts outlines steps being taken by state policymakers to ensure effective pension funding. Initiatives include increased contributions, implementing funding policies tied to actuarial best practices, and adopting strategies to reduce unfunded liabilities. These efforts demonstrate a commitment to stabilizing and strengthening public pension systems for the long term.
Why It Matters: Effective pension funding is critical for the sustainability and reliability of retirement systems. By prioritizing these measures, policymakers can address potential fiscal challenges and ensure secure retirements for public employees. This serves as a model for other states aiming to enhance their pension systems.
Read More: State Policymakers Take Steps to Prioritize Effective Pension Funding
9. International Migration Drives Population Growth in 2024
The Story: A new press release from the U.S. Census Bureau highlights how international migration has become the largest driver of population growth in 2024. The data reveals a significant shift in demographic trends, with migration contributing to workforce changes and economic development across various regions.
Why It Matters: Understanding population dynamics is crucial for policymakers and stakeholders in planning for future economic and workforce needs. These trends have implications for public pension funds, as shifts in workforce demographics can affect contribution rates and long-term sustainability.
Read More: International Migration Drives Population Growth in 2024
10. China Telecom Hack: How to Protect Your Messages
The Story: A major hack involving China Telecom has raised concerns over the security of online communications. This incident underscores vulnerabilities in messaging platforms and highlights the need for robust cybersecurity measures. The article from Stay Safe Online provides actionable tips to secure messages and safeguard sensitive information.
Why It Matters: Cyberattacks on communication platforms can compromise both personal and organizational data. For trustees and stakeholders managing sensitive pension fund information, adopting secure communication practices is critical to mitigating risks.
Read More: China Telecom Hack: How to Protect Your Messages
11. Texas Comptroller Distributes $1.2 Billion in Sales Tax Revenue
The Story: Texas Comptroller Glenn Hegar has announced the distribution of $1.2 billion in monthly sales tax revenue to local governments. These funds, collected from November sales, provide critical financial support for city and county services, transportation, and public safety initiatives across Texas. This record-breaking allocation highlights the resilience of the state's economy.
Why It Matters: For public pension systems, stable and growing local government revenues are essential for maintaining contributions and ensuring long-term solvency. Understanding these funding streams helps stakeholders appreciate the broader economic context of pension sustainability.
Read More: Texas Comptroller Distributes $1.2 Billion in Sales Tax Revenue
12. States, Cities, and Counties Outlook: Moody's Event
The Story: Moody's is hosting an event to provide a comprehensive outlook for states, cities, and counties in 2025. The session will cover credit trends, fiscal health, and economic challenges faced by local governments. Expert speakers will share insights into how these factors may influence public finance and policy decisions in the coming year.
Why It Matters: For trustees and administrators, understanding the fiscal and economic landscape at the local government level is crucial for strategic planning and decision-making. This event offers valuable perspectives to guide actions that ensure financial stability and robust pension funding.
Details:
- Event: States, Cities, and Counties Outlook: Moody's Event
- Date: Jan. 9, 2025, 3 PM EST/ 2 PM CT
- Location: Online
- Registration: Click here to register
By staying informed and engaged, you can drive positive outcomes for your stakeholders. Bookmark this roundup and check back weekly for updates tailored to your role in pension governance.
About the Author: Allen Jones is the director of communications and event marketing for TEXPERS. He joined the Association in 2017. Before TEXPERS, he worked in the news media industry, producing content for newspapers, magazines, and online publications and leading newsrooms as an editor and publications manager. [email protected]