Sen. John Ashcroft, R-Mo., today unveiled a tax reform proposal that would let workers deduct their Social Security payroll taxes from their income taxes. The proposal also would end the income tax older Americans must pay on Social Security benefits they receive.
In addition, the Ashcroft proposal would double the amount of contributions workers can make to their IRAs to $4,000 from the current $2,000.
AAA Michigan, Livonia, Mich., plans to reduce the global bond allocation for its $250 million pension fund to 5% from 15% of the total fund, said J. Terry McElroy, vice president, CFO and treasurer. The allocation is run by several managers. The money could be reallocated to U.S. stocks and bonds, but no decision has been made. No managers will be changed.
City of Marquette (Mich.) Fire & Police Retirement System is conducting an asset allocation study that is expected to be completed by the end of 1998.
The $20 million plan currently invests 50% in U.S. stocks and 50% in U.S. bonds. Donna Kohut, finance director, said it is too early to say what changes could be made as a result of the study.
Asset Strategies will assist the fund.
Stanislaus County Retirement Association, Modesto, Calif., is postponing its small-cap equity manager search for at least another four or five months.
The board of the $775 million plan is reviewing some of its internal procedures such as guidelines followed for reviews of services provided by managers, actuaries and consultants; searches; asset allocation reviews; and additions of new asset classes, said Robert Harmon, retirement manager. It may be early summer before the board discusses the issue of a small-cap equity search again, he said.
