Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
As Tesla stock falls, pension fund managers are concerned Musk is asleep at the wheel, distracted by the DOGE government takeover
There is no shortage of controversy surrounding Elon Musk’s DOGE and the ever-expanding list of vital government services like Pell Grants, Medicare, Medicaid, Social Security, and school lunches on the chopping block. Musk has forced the firing of thousands of federal workers, and Tesla investors are now feeling the pain.
Tesla stock has fallen nearly 48% this year and down 15% on Monday—its worst trading day in five years. The public outcry to DOGE, along with personal controversies, have resulted in Tesla losing $700 billion in market value and Musk losing $148 billion in net worth.
With numbers this astronomically large, millions will be affected. A strong vocal group is pension fund managers. “This is a real cost to real people,” Illinois State Treasurer Michael Frerichs told ABC News. We’re talking about firefighters, police officers, and nurses who work in public. Their retirement dollars are at stake.”
New York City Comptroller Brad Lander, who oversees approximately $1.2 billion in Tesla stock through the city’s pension funds, echoed that sentiment.
“There’s no real leadership. It is at the bottom of his list. And so we have not had a CEO at Tesla focused on selling EVs, growing the company, making money, and getting returns for shareholders,” Lander told ABC News. The most recent study has shown that pensions are responsible for $1.5 trillion in total economic output.
Grovetown City Council showing support for a state retirement plan for police officers in Georgia
A town in Georgia is advocating for the adoption of a statewide retirement system for all Georgia law enforcement officers.
Currently, retirement plans in Georgia vary by municipality or county government, making it challenging for officers to transfer retirement credits between departments.
The lack of portability can create obstacles for officers who need to relocate or seek career advancement in a different department.
“You have someone that starts at a local department and spends five or six years and then says, well, I want to go to the State patrol. Well, that’s five of six years that they won’t even get credit for. They’re going to have to start over again at the state patrol, or the GBI, or vice versa,” said Chief Jamey Kitchens, Grovetown Police Department.
The resolution aims to help with officer recruitment and retention by providing a highly competitive retirement system.
The motion was passed, and Grovetown will present the resolution to state officials and encourage surrounding counties to adopt similar measures.
Voucher Scam Threatens More Than Just Schools. It Puts Pensions at Risk
Texas AFT is sounding the alarm on a bill that will hurt teachers’ pensions. HB3 is a bill typically known as a “voucher” or “school choice” bill, that would use public tax dollars to fund private schools.
Public school employees of all types are vehemently opposed to this because it takes money away from public education. When money is taken away from public schools, the workforce is severely reduced, putting the pension at risk.
Pensions rely on funding from employers, employees, and their investments. Diverting funds towards private and charter schools would put a considerable strain on the Texas Retirement System, and teachers who have spent decades helping students will feel the pain.
While lawmakers supporting the bill disagree about the potential impact, States like Arizona and Wisconsin have seen catastrophic impacts when their public schools have been underfunded.
For an updated bill tracker on the legislation NPPC is following nationwide, go to publicpensions.org/resources/legislation-tracker/.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.