Administration September 3, 2013

State Pensions Underfunded by Trillions

September 3, 2013 (PLANSPONSOR.com) – A new report indicates state public employee pension plans are underfunded by $4.1 trillion.
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The report from State Budget Solutions, “Promises Made, Promises Broken—The Betrayal of Pensioners and Taxpayers,” identifies states where taxpayers and public employee pensioners are most threatened from unfunded pensions. This list includes Illinois, Ohio, New Jersey, Oregon, Connecticut, Nevada, New Mexico, Hawaii and Alaska. According to the report, these states face a particularly large unfunded liability at a per capita level and as a percentage of their annual gross state product.

The report is a fair-market evaluation that discounts liabilities at a risk-free rate, as opposed to the optimistic investment returns used by most plans, said Bob Williams, president of State Budget Solutions.

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States with the lowest funded ratio include:

  • Illinois (24% funded);
  • Connecticut (25%);
  • Kentucky (27%);
  • Kansas (29%); and
  • Mississippi, New Hampshire and Alaska (30%).

In addition to low-funded ratios, Alaska, Ohio and Illinois also have some of the largest unfunded liabilities per person weighing in at $32,425, $24,893 and $22,294, respectively.

The full report can be found here.

Benefits September 3, 2013

Many Still Connected to Office While on Vacation

September 3, 2013 (PLANSPONSOR.com) – The majority (82%) of employees of employees polled said they stay connected to the office while on vacation.
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The inaugural Workcation Nation Survey from PGi, a virtual meetings provider, revealed 42% of U.S. employees choose to check in with the office once a day while on vacation, and 40% check in multiple times a day.

The survey findings showed only a small percentage of employees disconnect when on vacation; only 10% reported they never check in with the office during a vacation. Eight percent said they are unable to even take a vacation.

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Smartphones (40%) were found to be the most common device employees bring with them to stay connected to work, followed by laptops (11%) and tablets (4%). “Hyper-connected” employees are also common, according to the survey, with 37% of respondents reporting they brought a smartphone, laptop and tablet with them on vacation in order to check in with the office.

The survey also found tools built for mobile devices areconsidered essential to the 65% of respondents who had joined or hosted a meeting from a mobile device while on vacation. Of those who used a mobile device to host or join a meeting, 94% dialed into a conference call, 92% participated in a web conference and 80% attended a video conference.

“The survey findings illustrate an increasingly accepted norm in which the lines between work and personal lives are blurring,” said Sean O’Brien, executive vice president, PGi Strategy & Communications. “It’s indicative of a trend we’re seeing in the market as work becomes less about the place you go, but more closely aligned with getting the job done.”

The survey was conducted online with U.S.-based customers during June and July 2013, with responses from 588 individuals.

More information about the survey can be requested via publicrelations@pgi.com.

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