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. This is the news you need to know in the fight for a secure retirement.
Musk Rewarded with Highest Corporate Payout in History Despite Union Leadership Misgivings
This week, Tesla shareholders overwhelmingly voted to approve CEO Elon Musk’s $1 trillion compensation package, despite vocal opposition from organized labor.
Several of Tesla’s largest shareholders opposed the vote, including California Public Employees’ Retirement System (CalPERS), several New York City retirement systems, and the American Federation of Teachers (AFT). AFT, the country’s second-largest teachers’ union, along with other unions, state treasurers, and investment firms, urged Tesla shareholders last month to reject Elon Musk’s massive pay package, saying it lacked sufficient guarantees that Musk would stay focused on Tesla.
Colorado Pensions Require Fiscal Diligence
Facing anticipated cash shortfalls in the state next year, chief executive officer and executive director of the Public Employees’ Retirement Association of Colorado (PERA), Andrew Roth, and Colorado Court of Appeals judge and chair of the Board of Trustees for PERA, Rebecca Freyr,e have a crucial message for lawmakers: consistent contributions are essential for PERA to reach full funding.
In 2026, Colorado is expected to face significant budget deficits that could require up to $1 billion in public spending cuts. Securing the state’s continued annual contribution of $225 million to PERA is a top priority for the PERA CEO. “Legislative reforms during the past decade aimed at improving PERA’s funding have lowered retirees’ annual benefit adjustments and raised contributions from working members and their employers,” Roth and Freyre note. “If PERA falls behind on its funding progress, our stakeholders will have to carry even more of the burden of getting us back on track — in the form of higher contribution rates and lower annual increases.”
World Pension Summit Panelists Agree that Private Equity Requires More Investor Education
Private equity has been a trending topic among U.S. public pension system professionals, following an ongoing surge in investors from the public sector. This week, at the World Pension Summit in The Hague, the Netherlands, a panel of investors emphasized the need for improved investor education about private markets, not just in America, but globally.
The panelists all agreed that investor education is crucial, especially in the event of a downturn. Saoirse O’Connor, interim deputy head of portfolio Management at the Ireland Strategic Investment Fund, stated, “If there is a downturn, if they don’t understand the risk they took, it’s going to (cause) damage.”
Private equity raises concerns about fiduciary responsibility, while potentially providing pension systems with a theoretical financial boost.
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