Reps. Earl Pomeroy, D-N.D., and Nancy L. Johnson, R-Conn., introduced a bill last week to set up a federal task force to study the nation's looming retirement income crisis.
The Commission on Retirement Income Policy, made up of 18 experts, would make recommendations by the end of next year. It would examine where older individuals get their money, including from Social Security and private savings, how much younger individuals are saving for their retirement, as well as tax policy and other federal incentives to help individuals save for their old age.
The bill is expected to pass Congress.
The 220 billion guilder ($133 billion) Stichting Pensioenfonds ABP hired ABN-AMRO Asset Management to invest an undisclosed sum in emerging markets equities, said CIO Jean Frijns.
The portfolio largely will be invested in Pacific Basin stocks. ABN-AMRO is the first manager to invest in that asset class for the Heerlen, Netherlands-based pension fund for Dutch civil service employees.
The move is part of the giant fund's international diversification effort.
Trustees of the $700 million City of Hartford (Conn.) Municipal Employees' Retirement Fund hired Connecticut General Pension Services to conduct an asset allocation study for the fund, said Deputy Treasurer Kathleen Palm. The study will be conducted simultaneously with a five-year experience study of the fund's liabilities by Hooker & Holcombe, the fund's actuary.
The fund's asset allocation is about 60% domestic equities and 40% domestic fixed income. But the fund may invest up to 5% of total assets in international equity and real estate, said Ms. Palm.
Trustees of the $10.9 billion New York City Police Pension Fund hired Pictet International Management and Genesis Emerging Markets Fund for $75 million each in emerging markets equities, said Jon Lukomnik, deputy comptroller-asset management. Funding will come from a reduction in domestic fixed income.
The PBGC's single-employer plan deficit dropped nearly 74% to $315 million in 1995, the lowest level since 1981, the agency reported last week.
The drop was mostly attributed to record investment earnings and no major plan terminations. The PBGC's investments produced nearly $2 billion in income in 1995, the largest gain the agency has ever seen.
At the end of 1995, the agency had about $10.4 billion in assets and about $10.7 billion in liabilities in its single-employer program.
Institutional Shareholder Services has terminated Gary Lyons, head of its corporate consulting services division, and might be retreating from that venture. Mr. Lyons said he was terminated for a marketing campaign in which ISS offered to provide companies with "suggestions for bringing your proposals into compliance with the voting policies of your specified shareholders."
ISS President Jamie Heard declined to discuss the subject, but Mr. Lyons thinks he was fired because some corporate officials and corporate consultants complained of the aggressive and threatening tone of letters pushing the consulting service.
Trustees of the $5.4 billion Police and Firemen's Disability and Pension Fund of Ohio will begin using an independent internal auditor, as recommended by the state auditor.
The internal audit would determine if the proper financial controls are in place, and that the fund complies with government reporting standards.
Trustees also voted to eliminate direct credit card billing for board members; establish a formal RFP process with a "Buy Ohio" component; and implement a trustee travel policy that requires approval at a public meeting.
The PBGC will take over Franklin Industries Inc.'s pension plans, underfunded by $21.5 million. Franklin has two plans covering nearly 600 workers and retirees; the hourly plan has assets of about $4.7 million and liabilities of about $21.1 million; the salaried plan has assets of about $3.2 million and liabilities of about $8.3 million.
Fidelity Investments is developing five lifecycle funds that will invest in Fidelity mutual funds. The new LifePlan funds will be age-weighted and designed to meet the rough retirement dates of plan investors of all ages, said Robert Reynolds, president of Fidelity Investments Institutional Retirement Group. The series of portfolios will be diversified by asset class and portfolio manager.
