Showing posts with label pension. Show all posts
Showing posts with label pension. Show all posts
Wednesday, November 30, 2011
Friday, January 8, 2010
State Successfully Sells $3.466 Billion of General Obligation Bonds to Fund Employee Pensions
From the Governor's Office of Management and Budget
Thursday, January 7, 2010
CHICAGO – January 7, 2010. The Governor’s Office of Management and Budget of the State of Illinois today is pleased to announce the successful sale of $3.466 Billion in taxable General Obligation Bonds at a rate of 3.854% to be deposited into the Pension Contribution Fund. Funds from these bonds will reimburse or fund the State’s required deposit to its pension systems for fiscal year 2010. The bond principal amount will be paid in equal installments over the next five years.
“This is a very successful deal for the State of Illinois and the 3.854% rate is proof the State’s economy is strong,” said Governor Pat Quinn. “Investors have expressed confidence in our State and have allowed us to meet our Pension Contribution for this fiscal year."
Close to 200 investors, including major American, European, and Asian investors purchased these bonds. Demand exceeded $8 Billion resulting in an oversubscription of $3.9 Billion-a 2 to 1 coverage. The oversubscription allowed pricing to be improved 15 basis points over initial indications.
“The level of demand for this bond issuance reflects the markets belief in the State’s long term financial strength, said David Vaught, Director of the Governor’s Office of Management and Budget.
Eleven Banks participated in this transaction including J.P. Morgan, Goldman Sachs, and Loop Capital Markets who served as Joint Book Running Senior Managers. Mesirow Financial served as Senior Manager. Seven other firms completed the underwriting syndicate. Peralta Garcia Solutions served as financial advisor to the State in connection with this financing.
“I’m very pleased with the hard work and great execution provided to the State by our bank group,” said John Sinsheimer, Director of Capital Markets for the Governor’s Office of Management and Budget.
This is the State's first issuance of medium term notes for its pension system and is the second largest deal ever done by the State. It is one of only a handful of deals this size ever completed by state issuers.
The General Assembly authorized these bonds during the July 2009 Session. In excess of $800 Million from this bond sale will be used to reimburse the Common School Fund and the General Revenue Fund for monies already advanced to the pension funds.
Thursday, January 7, 2010
CHICAGO – January 7, 2010. The Governor’s Office of Management and Budget of the State of Illinois today is pleased to announce the successful sale of $3.466 Billion in taxable General Obligation Bonds at a rate of 3.854% to be deposited into the Pension Contribution Fund. Funds from these bonds will reimburse or fund the State’s required deposit to its pension systems for fiscal year 2010. The bond principal amount will be paid in equal installments over the next five years.
“This is a very successful deal for the State of Illinois and the 3.854% rate is proof the State’s economy is strong,” said Governor Pat Quinn. “Investors have expressed confidence in our State and have allowed us to meet our Pension Contribution for this fiscal year."
Close to 200 investors, including major American, European, and Asian investors purchased these bonds. Demand exceeded $8 Billion resulting in an oversubscription of $3.9 Billion-a 2 to 1 coverage. The oversubscription allowed pricing to be improved 15 basis points over initial indications.
“The level of demand for this bond issuance reflects the markets belief in the State’s long term financial strength, said David Vaught, Director of the Governor’s Office of Management and Budget.
Eleven Banks participated in this transaction including J.P. Morgan, Goldman Sachs, and Loop Capital Markets who served as Joint Book Running Senior Managers. Mesirow Financial served as Senior Manager. Seven other firms completed the underwriting syndicate. Peralta Garcia Solutions served as financial advisor to the State in connection with this financing.
“I’m very pleased with the hard work and great execution provided to the State by our bank group,” said John Sinsheimer, Director of Capital Markets for the Governor’s Office of Management and Budget.
This is the State's first issuance of medium term notes for its pension system and is the second largest deal ever done by the State. It is one of only a handful of deals this size ever completed by state issuers.
The General Assembly authorized these bonds during the July 2009 Session. In excess of $800 Million from this bond sale will be used to reimburse the Common School Fund and the General Revenue Fund for monies already advanced to the pension funds.
Wednesday, June 3, 2009
Gov Quinn Names Six New Members to Teachers Retirement Board, & Five to State Board of Investment
CHICAGO – June 3, 2009. Governor Pat Quinn is fulfilling his pledge to reform top state pension boards by naming six new trustees to the Teachers’ Retirement System Board and five new members to the State Board of Investment. Recently, the Governor signed legislation to reform the boards by implementing needed structural changes and ensuring the boards are more open and accountable to the people.
The Teachers’ Retirement System Board provides retirement pensions and other benefits for teachers and beneficiaries. The State Board of Investment manages the investments of the State Employees’ Retirement System, General Assembly Retirement System, Judges Retirement System, and the Public Employees Deferred Compensation Plan.
The new members of the Teachers’ Retirement System Board include:
Matthew Berns, Trustee – Berns, a graduate of University of Michigan Law School, has worked at Hu-Friedy Manufacturing for the past three years and serves on their 401 (k) Committee. He is a former employer of Culligan Manufacturing and Focal Communications Corporation.
Michael D. Busby, Trustee – Busby served for 18 years as the Vice President of Watson Wyatt Worldwide, a global human resource pension consulting firm. He has more than 35 years experience with the pension industry, including plan design, funding, investment and administration. He has a degree in accounting from the University of Notre Dame.
Livia Kiser, Trustee – Kiser, a trial attorney at Latham Watkins, LLP, has represented companies in administrative and regulatory proceedings, while also providing pro bono work in the areas of education and prisoner’s rights. Kiser has also served on her local school board. She is a graduate of Northwestern University School of Law.
Sidney Marder, Trustee – Marder, of Springfield, has been an active member in his local community and a longtime environmental advocate. He previously served as the State of Illinois, Director of the Division of Energy, a member of the Illinois Pollution Control Board and owner and partner in Marder & Associates, an environmental consulting firm.
Janice Reedus, Trustee – Reedus is the Vice President of Administration and Finance at Fenwick High School and previously served as the Senior Vice President of Bank of America. A graduate of the Northwestern University Kellogg Graduate School of Management, she has managed budgets over $20 million and, in partnership with investment advisors, an $18 million investment portfolio.
Sonia Walwyn, Trustee – Walwyn is the Vice President of the Midwest Region for Keane Organization, Inc. She previously served as Senior Manager, State & Local Tax Practice Leader at KPMG, LLP., Director of Tax and Legal Services at Pricewaterhousecoopers, LLP. and Deputy General Counsel for the Treasury Department of the Commonwealth of Pennsylvania. She is a graduate of the Villanova School of Law.
The new members of the Board of Investment include:
John Casey, Trustee – Casey is the former Secretary General of the World Alliance of YMCAs, an organization that represents over 14,000 local YMCAs in 124 countries with 45 million members. He previously served as the President of the YMCA of Metropolitan Chicago for 10 years. He received a Masters in Industrial Relations from Loyola University Chicago.
Fred Montgomery, Trustee – Montgomery is the Director of State and Local Tax for the Sara Lee Corporation. Previously, he served as an Assistant Attorney General in Illinois and attorney at the Illinois Department of Revenue. Montgomery is a member of the Board of Trustees of the Illinois State Chamber of Commerce, the Taxpayer's Federation of Illinois and the Civic Federation of Chicago. He received a Masters in Social Sciences from Stanford University and a Juris Doctorate from DePaul University School of Law.
Michele Bush, Trustee – Bush has served on a number of organizations and boards including Advocate Health Care and the General Board of Pension and Health Benefits of the United Methodist Church, which administers one of the largest pension funds in Illinois. She has received a Juris Doctorate from Northwestern University Law School and a Master of Laws in Health Law from Loyola University Chicago School of Law.
Heather Parish, Trustee – Parish is a community development consultant in Chicago. Previously she served as a public finance investment banker and fiscal/policy analyst for the State of California, specializing in personal income and bank and corporate tax legislation. Parish is a member of the Wieboldt Foundation board and received a Master’s in Public Policy from the Kennedy School of Government at Harvard University.
Ronald Powell, Trustee – Powell is a current trustee of the Illinois State Board of Investment. Powell is the United Food and Commercial Workers Union (UFCW) Local 881 President and International Vice President. He is also a member of the Board of Directors of the Amalgamated Bank of Chicago and a trustee of the UFCW Midwest Pension Fund.
For more information on Illinois Boards and Commissions, please visit Appointments.Illinois.gov.
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The Teachers’ Retirement System Board provides retirement pensions and other benefits for teachers and beneficiaries. The State Board of Investment manages the investments of the State Employees’ Retirement System, General Assembly Retirement System, Judges Retirement System, and the Public Employees Deferred Compensation Plan.
The new members of the Teachers’ Retirement System Board include:
Matthew Berns, Trustee – Berns, a graduate of University of Michigan Law School, has worked at Hu-Friedy Manufacturing for the past three years and serves on their 401 (k) Committee. He is a former employer of Culligan Manufacturing and Focal Communications Corporation.
Michael D. Busby, Trustee – Busby served for 18 years as the Vice President of Watson Wyatt Worldwide, a global human resource pension consulting firm. He has more than 35 years experience with the pension industry, including plan design, funding, investment and administration. He has a degree in accounting from the University of Notre Dame.
Livia Kiser, Trustee – Kiser, a trial attorney at Latham Watkins, LLP, has represented companies in administrative and regulatory proceedings, while also providing pro bono work in the areas of education and prisoner’s rights. Kiser has also served on her local school board. She is a graduate of Northwestern University School of Law.
Sidney Marder, Trustee – Marder, of Springfield, has been an active member in his local community and a longtime environmental advocate. He previously served as the State of Illinois, Director of the Division of Energy, a member of the Illinois Pollution Control Board and owner and partner in Marder & Associates, an environmental consulting firm.
Janice Reedus, Trustee – Reedus is the Vice President of Administration and Finance at Fenwick High School and previously served as the Senior Vice President of Bank of America. A graduate of the Northwestern University Kellogg Graduate School of Management, she has managed budgets over $20 million and, in partnership with investment advisors, an $18 million investment portfolio.
Sonia Walwyn, Trustee – Walwyn is the Vice President of the Midwest Region for Keane Organization, Inc. She previously served as Senior Manager, State & Local Tax Practice Leader at KPMG, LLP., Director of Tax and Legal Services at Pricewaterhousecoopers, LLP. and Deputy General Counsel for the Treasury Department of the Commonwealth of Pennsylvania. She is a graduate of the Villanova School of Law.
The new members of the Board of Investment include:
John Casey, Trustee – Casey is the former Secretary General of the World Alliance of YMCAs, an organization that represents over 14,000 local YMCAs in 124 countries with 45 million members. He previously served as the President of the YMCA of Metropolitan Chicago for 10 years. He received a Masters in Industrial Relations from Loyola University Chicago.
Fred Montgomery, Trustee – Montgomery is the Director of State and Local Tax for the Sara Lee Corporation. Previously, he served as an Assistant Attorney General in Illinois and attorney at the Illinois Department of Revenue. Montgomery is a member of the Board of Trustees of the Illinois State Chamber of Commerce, the Taxpayer's Federation of Illinois and the Civic Federation of Chicago. He received a Masters in Social Sciences from Stanford University and a Juris Doctorate from DePaul University School of Law.
Michele Bush, Trustee – Bush has served on a number of organizations and boards including Advocate Health Care and the General Board of Pension and Health Benefits of the United Methodist Church, which administers one of the largest pension funds in Illinois. She has received a Juris Doctorate from Northwestern University Law School and a Master of Laws in Health Law from Loyola University Chicago School of Law.
Heather Parish, Trustee – Parish is a community development consultant in Chicago. Previously she served as a public finance investment banker and fiscal/policy analyst for the State of California, specializing in personal income and bank and corporate tax legislation. Parish is a member of the Wieboldt Foundation board and received a Master’s in Public Policy from the Kennedy School of Government at Harvard University.
Ronald Powell, Trustee – Powell is a current trustee of the Illinois State Board of Investment. Powell is the United Food and Commercial Workers Union (UFCW) Local 881 President and International Vice President. He is also a member of the Board of Directors of the Amalgamated Bank of Chicago and a trustee of the UFCW Midwest Pension Fund.
For more information on Illinois Boards and Commissions, please visit Appointments.Illinois.gov.
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Wednesday, March 18, 2009
TRS Opposes Cuts to State Pension Funding
From the Teachers' Retirement System of the State of Illinois
SPRINGFIELD, IL-A plan to balance the state’s budget by slashing the already underfunded Illinois pension funds will create even more red ink for generations to come. Governor Pat Quinn has proposed a $2.5 billion reduction in state funding to the five state pension systems for the fiscal year that begins July 1, including a $1.3 billion cut to the Teachers’ Retirement System of the State of Illinois (TRS).
Further, this budget blueprint calls for the state to suspend its payments to the pension systems as of March 31, 2009, eliminating $362 million due to TRS in the current fiscal year. The proposed cuts would exacerbate the state’s $73 billion pension debt, of which $41 billion is the Teachers’ Retirement System’s share. The plan perpetuates the broken funding promises that occurred in most recently in fiscal years 2006 and 2007 when the state deviated from its statutory funding obligation and cut $2.3 billion in funding to the retirement systems.
“These amounts must be repaid to the retirement systems with interest. If $1.3 billion is cut from TRS during fiscal year 2010, it will cost the state $11.1 billion over the 35 years remaining in the statutory funding plan,” said Jon Bauman, executive director of the Teachers’ Retirement System.
The state’s pension debt is mainly a product of insufficient state funding over a period of three decades and not due to overly generous benefits. The average retirement benefit paid by TRS totals $41,500 a year. Public school teachers in Illinois do not receive Social Security, often making their TRS benefit their only source of retirement income.
“The funding reductions hit particularly hard because of the systems’ recent investment losses caused by extreme volatility in the global financial markets,” Bauman said.
The Governor’s budget plan also calls for current active members of TRS to pay an additional two percent of their pay toward retirement, a provision that is considered an impairment of benefits and prohibited under the Illinois and U.S. Constitutions. TRS members currently contribute 9.4 percent of their income, which is already among the highest contribution rates in the nation among teacher pension plans.
TRS is urging the Illinois General Assembly to comply with current state law requiring actuarial funding amounts designed to pay off most of the state’s pension debt by fiscal year 2045.
TRS provides retirement, disability and survivor benefits to 355,584 teachers, administrators and Illinois public school personnel employed outside the city of Chicago. The market value of the System’s assets stood at $29 billion as of December 31, 2008.
SPRINGFIELD, IL-A plan to balance the state’s budget by slashing the already underfunded Illinois pension funds will create even more red ink for generations to come. Governor Pat Quinn has proposed a $2.5 billion reduction in state funding to the five state pension systems for the fiscal year that begins July 1, including a $1.3 billion cut to the Teachers’ Retirement System of the State of Illinois (TRS).
Further, this budget blueprint calls for the state to suspend its payments to the pension systems as of March 31, 2009, eliminating $362 million due to TRS in the current fiscal year. The proposed cuts would exacerbate the state’s $73 billion pension debt, of which $41 billion is the Teachers’ Retirement System’s share. The plan perpetuates the broken funding promises that occurred in most recently in fiscal years 2006 and 2007 when the state deviated from its statutory funding obligation and cut $2.3 billion in funding to the retirement systems.
“These amounts must be repaid to the retirement systems with interest. If $1.3 billion is cut from TRS during fiscal year 2010, it will cost the state $11.1 billion over the 35 years remaining in the statutory funding plan,” said Jon Bauman, executive director of the Teachers’ Retirement System.
The state’s pension debt is mainly a product of insufficient state funding over a period of three decades and not due to overly generous benefits. The average retirement benefit paid by TRS totals $41,500 a year. Public school teachers in Illinois do not receive Social Security, often making their TRS benefit their only source of retirement income.
“The funding reductions hit particularly hard because of the systems’ recent investment losses caused by extreme volatility in the global financial markets,” Bauman said.
The Governor’s budget plan also calls for current active members of TRS to pay an additional two percent of their pay toward retirement, a provision that is considered an impairment of benefits and prohibited under the Illinois and U.S. Constitutions. TRS members currently contribute 9.4 percent of their income, which is already among the highest contribution rates in the nation among teacher pension plans.
TRS is urging the Illinois General Assembly to comply with current state law requiring actuarial funding amounts designed to pay off most of the state’s pension debt by fiscal year 2045.
TRS provides retirement, disability and survivor benefits to 355,584 teachers, administrators and Illinois public school personnel employed outside the city of Chicago. The market value of the System’s assets stood at $29 billion as of December 31, 2008.
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