Governmental pension plans are vigorously reacting to the impact of COVID-19, protecting the safety of system members and employees while ensuring continuity of their operations in the face of stay-at-home
Governmental pension plans are vigorously reacting to the impact of COVID-19, protecting the safety of system members and employees while ensuring continuity of their operations in the face of stay-at-home orders affecting an estimated 90 percent of the country. At the same time, markets have been on a rollercoaster ride, with Moody’s Investors Service warning in March they thought U.S. public plans were on track, at that time. to experience an average investment loss of as much as 21 percent for the fiscal year ending June 30.
State and local governments are projected to experience lower revenues, and those reductions could be significant, while their costs associated with providing healthcare and other emergency services are draining plan sponsors’ coffers. Employers’ ability to pay their pension contributions, let alone afford higher costs, could be strained.
ow are public pension plans dealing with the current market volatility? Were they prepared? Are significantly higher unfunded liabilities a certainty, and how will they – and the overall impact of 2020 — be dealt with actuarially? Finally, what did the last financial crisis a decade ago teach us? Are there lessons learned, or is the current situation too different to make valid comparisons?
For answers to these and other important questions public plans should be thinking about now, be sure to join Leigh Snell, NCTR’s Director of Federal Relations, on Thursday, April 16, at 3:00 PM ET, when he will discuss the impact of the COVID-19 crisis on public pension funding with his special guests:
- Kristen Doyle, Partner, Head of Public Funds, Aon
- Bill Hallmark, Consulting Actuary, Cheiron
- Keith Brainard, Research Director, NASRA
Register now, as attendance is limited, and this will certainly be a popular and important webinar that you will not want to miss.