WASHINGTON (Reuters) – A top Republican senator unveiled legislation on Tuesday that would radically change public pensions by having life insurance companies pay benefits through annuity contracts, helping to alleviate the underfunding that has engulfed many plans.
The bill introduced by Utah Senator Orrin Hatch, the highest-ranking Republican on the Finance Committee, would have the government pay a premium each year to a state-licensed insurer in an amount equal to a set percentage of salary. Employees would then receive fixed income annuity contracts from the insurance company.
WASHINGTON, June 27 (Reuters) – The assets held by U.S.
public pension plans have surpassed their pre-recession peaks to
reach record highs, but investment returns for the state and
local retirement systems have slowed from even a year ago even
as benefit costs rise.
For the 100 largest public-employee retirement systems, cash
and security holdings totaled $2.93 trillion in the first
quarter, the highest on records going back to 1968, according to
a U.S. Census report released on Thursday. The previous peak was
just before the financial crisis in the fourth quarter of 2007,
WASHINGTON, June 25 (Reuters) – President Barack Obama’s
administration is still pursuing his proposal to limit the tax
exemption for interest paid by municipal bonds, with a top U.S.
Treasury official on Tuesday saying the agency hopes new debt
programs will allow state and local governments to continue
financing public works.
As part of his push to balance the federal budget, Obama has
repeatedly suggested limiting the rate at which high-income
taxpayers can reduce their liability at 28 percent.
WASHINGTON, June 21 (Reuters) – Automatic federal spending
cuts known as sequestration have not spawned unemployment in
Virginia, Maryland and Washington, D.C., as many predicted, with
data released on Friday showing that the three places gained
jobs as their unemployment rates dropped over the last year.
According to the Labor Department, Virginia’s unemployment
rate was 5.3 percent in May, compared to 5.9 in May 2012. The
drop was also seen for the District of Columbia, where the rate
was 8.5 percent in May, compared to 9.1 percent the year before.
For Maryland, the rate was 6.7 percent, down slightly down from
6.8 percent in May 2012.
By Lisa Lambert
(Reuters) – The possibility of rising interest rates rocked the U.S. municipal bond market on Thursday, with prices plunging in secondary trade, investors selling off the debt, money pouring out of mutual funds and issuers postponing nearly $2 billion in new sales.
“The market got crushed,” said Daniel Berger, an analyst at Municipal Market Data, a unit of Thomson Reuters, about the widespread sell-off.
WASHINGTON (Reuters) – Most U.S. states are set to end the current fiscal year in solid financial shape, but their recoveries could be derailed by an array of threats and increasing demands on their spending, according to a survey released on Thursday.
Bringing welcome relief after years of budget shortfalls, states’ revenues have risen steadily over the last year. Many states are set to finish fiscal 2013 “with modest surpluses,” according to a twice-yearly survey of state budgets by the National Governors Association and the National Association of State Budget Officers.
WASHINGTON (Reuters) – Most U.S. states are set to end this fiscal year in solid financial shape, but a report on Thursday said an array of threats including federal budget cuts and potential sales tax declines will keep state spending.
The survey of states’ fiscal conditions conducted by the National Governors Association and the National Association of State Budget Officers found that revenues have come in stronger than expected this fiscal year, and “a number of states could finish fiscal 2013 with modest surpluses.”
WASHINGTON, June 10 (Reuters) – A Detroit-based investment
adviser agreed to give back $3.1 million that U.S. regulators
allege he stole from a pension fund for the city’s police and
firefighters, the U.S. Securities and Exchange Commission said
Chauncey Mayfield, who is the head of MayfieldGentry Realty
Advisors, took the money so he could buy two strip malls in
California, the SEC said.
WASHINGTON, June 6 (Reuters) – The banking sector is
becoming a greater force in the U.S. municipal bond market, with
Federal Reserve data on Thursday showing that banks’ holdings of
municipal bonds reached a record $374.2 billion in the first
quarter of 2013.
The sector now holds more than 10 percent of outstanding
municipal bonds, nearly double its 5.9 percent market share in
2007, according to the Federal Reserve report.
WASHINGTON/CHICAGO (Reuters) – A former Goldman Sachs Group Inc. investment banker has agreed to a five-year securities industry ban and a record fine to settle Securities and Exchange Commission charges that he broke rules against influence peddling to win bond underwriting business in Massachusetts.
Without admitting or denying wrongdoing, Neil Morrison, 38, accepted what the SEC said was the first industry ban for violating “pay-to-play” rules governing the $3.7 trillion municipal bond market.