Weekly Highlights in Pensions, Investments, and the Economy – Nov. 22, 2024
Welcome to this week's roundup of the most impactful developments in pensions, investments, and the broader economic landscape. As we monitor trends shaping retirement systems and public employees' financial well-being, it's equally important to keep a pulse on economic shifts influencing these sectors. Here's what caught our attention this week:
Dallas Police and Fire Pension System Wins Legal Battle Over Funding Shortfall
A state court judge has ruled in favor of the Dallas Police and Fire Pension System, mandating that the city adhere to the pension board's funding plan to address a $3 billion shortfall. This decision requires the city to contribute approximately $215 million in the first year, aiming to rectify the deficit within three years instead of the city's proposed five-year plan. For more details, read the full article here: Dallas Fire, Police Pension Wins Suit Over $3B Shortfall.
Texas Labor Force Reaches Record High
The Texas Workforce Commission reports that the state's civilian labor force achieved a record high of 15,497,100 in October 2024, with an additional 47,300 people entering the workforce last month. While total nonfarm employment saw a slight dip of 10,600 jobs, annual job growth remains robust at 2.0%, outpacing the national rate. Sectors like Financial Activities led gains with a 3.1% yearly growth rate, significantly higher than the national average. For a deeper dive into these economic developments, visit the full update here: Texas Labor Force Reaches Record High.
Dallas Economic Outlook Downgraded Following Proposition U Approval
Moody's Investors Service has downgraded Dallas's economic outlook from stable to negative after voters approved Proposition U, which mandates the city to hire 900 additional police officers and allocate at least half of new tax revenues to the police and fire pension fund. This change could impact the city's credit rating over the next two years, potentially increasing borrowing costs and affecting public services. City officials and financial experts are expressing concern over the fiscal implications of this measure. For more details, read the full article here: Dallas Economic Outlook Downgraded Following Proposition U Approval.
Nacogdoches Hospital Board President Resigns Amid Threats
In Nacogdoches, Texas, hospital board president Lisa King has stepped down after receiving threats connected to her position. King, who has held the role for several years, stated that her decision was driven by concerns for her safety and her family's well-being. The hospital board will soon begin accepting applications to fill King's at-large seat, which is open to residents from anywhere in the county. Additionally, newly sworn-in board member Philip Blackburn was elected as the board's new president following a nomination by Rikki Leigh Willoughby, another recently appointed member. For more information, read the full story here: Nacogdoches Hospital Board President Resigns Amid Threats.
NASRA Releases Public Fund Survey Summary for FY 2023
The National Association of State Retirement Administrators has published its 22nd annual Public Fund Survey Summary of Findings for Fiscal Year 2023. This comprehensive report analyzes vital characteristics and trends of the nation's largest public retirement systems, covering 13.4 million active members and 10.9 million annuitants. As of the end of FY 2023, these systems held combined defined benefit plan assets totaling $4.75 trillion, representing nearly 90% of the state and local government defined benefit plan community. The survey provides valuable insights into public pension funding levels, investment performance, and demographic trends, serving as a crucial resource for stakeholders in the public retirement sector. For more details, access the full report here: NASRA Public Fund Survey.
Milliman Reports Decline in Public Pension Funded Ratio
October 2024 ended a five-month streak of positive investment returns for public pensions, resulting in a drop in the estimated funded status of the 100 largest U.S. public pension plans. According to the Milliman 100 Public Pension Funding Index, the funded ratio declined from 82.8% on Sept. 30, 2024, to 81.2% by Oct. 31, 2024. Year-to-date investment returns are estimated at 7.6% through the end of October. Read the full report here for a detailed analysis: Milliman Public Pension Funding Index – November 2024.
AI's Role in Strategic Decision-Making Explored
A recent study published in Strategy Science examines the impact of artificial intelligence on strategic decision-making among entrepreneurs and investors. The research highlights how AI tools can enhance decision-making processes by providing data-driven insights, thereby improving the quality of strategic choices. However, it also cautions about potential overreliance on AI, emphasizing the need for human judgment in interpreting AI-generated data. The study underscores integrating AI with human expertise to optimize strategic outcomes. For an in-depth exploration, read the full article here: Artificial Intelligence and Strategic Decision-Making: Evidence from Entrepreneurs and Investors.
Stay tuned for more updates next week as we continue to track the latest trends shaping the pensions and investment landscape.
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]