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News

Financial Stability Report
Source: Board of Governors of the Federal Reserve System

The coronavirus (COVID-19) pandemic has caused tremendous human and economic hardship across the United States and around the world. The pandemic and the measures takento contain it have effectively closed some sectors of the economy since mid-March. Economic activity in the United States has contracted at an unprecedented pace, and the unemployment rate surged to 14.7 percent in April.

The disruptions to economic activity here and abroad have significantly affected financial conditions and have impaired the flow of credit. Policymakers in the United States and worldwide have taken extraordinary measures to strengthen the recovery once the health
crisis passes. The Federal Reserve quickly lowered its policy rate to close to zero to support economic activity and took extraordinary measures to stabilize markets and bolster the flow of credit to households, businesses, and communities. In addition, the U.S. Congress and
Administration rapidly enacted fiscal measures to support households and businesses. Taken together, these steps contributed to improved conditions that should boost the economic recovery when social distancing and other public health measures are able to subside.

Against this backdrop, this Financial Stability Report reviews the effect of the economic and market shocks associated with COVID-19 on U.S. financial stability to date and discusses the Federal Reserve’s response. While the financial regulatory reforms adopted since 2008
have substantially increased the resilience of the financial sector, the financial system nonetheless amplified the shock, and financial sector vulnerabilities are likely to be significant in the near term. The strains on household and business balance sheets from the economic
and financial shocks since March will likely create fragilities that last for some time. Financial institutions—including the banking sector, which had large capital and liquidity buffers before the shock—may experience strains as a result.

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Social Security’s Financial Outlook: The 2020 Update in Perspective
Source: Center for Retirement Research

  • The 2020 Trustees Report, which was prepared before the pandemic, shows:
    • Social Security’s 75-year deficit increased from 2.78 percent to 3.21 percent of payroll.
    • Trust fund depletion remains at 2035, after which payroll taxes still cover about three quarters of promised benefits.
  • This shortfall is manageable, and the pandemic is unlikely to fundamentally alter the long-term financial status of the program.
  • Today’s crisis has also underscored the importance of Social Security, which continues to provide a steady source of income to millions of Americans.
  • Therefore, once the crisis subsides, stabilizing Social Security’s long-term finances should be a high priority to ensure that Americans have full confidence in its future.

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A Meeting of the Illinois Police Officers’ Pension Investment Fund – May 13, 2020
Source: POPIF

NOTICE: A MEETING OF THE ILLINOIS POLICE OFFICERS’ PENSION INVESTMENT FUND

To be held on Wednesday, May 13, 2020 at 2:30pm.

You can view the agenda by clicking  Here

Zoom Digital Platform

ZOOM Invite: Public invited through telephone, see agenda for details.

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Illinois Governor Issues Executive Order 2020-32
Source: Illinois Governor Office

Illinois Governor Issues Executive Order 2020-32

Effective May 1, 2020, Executive Order 2020-32 extends many of the same requirements as the original stay-at-home order Governor Pritzker issued on March 20, 2020, including provisions on essential activities, essential travel, and social distancing.

New mandates include provisions designed to encourage social distancing and the wearing of face coverings and other personal protective equipment (PPE).

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A Meeting of the Illinois Police Officers’ Pension Investment Fund – May 8, 2020
Source: POPIF

NOTICE: A MEETING OF THE ILLINOIS POLICE OFFICERS’ PENSION INVESTMENT FUND

To be held on Wednesday, May 8, 2020 at 10:00am.

You can view the agenda by clicking  here

Zoom Digital Platform

ZOOM Invite: Public invited through telephone, see agenda for details.

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Coronavirus, Interest Rates and Volatility
Source: Northern Trust Asset Management, NIRS

A presentation by Northern Trust Asset Management and the National Institute on Retirement Security (NIRS) on the Coronavirus, Interest Rates and Volatility.

To download the presentation, please click here.

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Economic Implications of the COVID-19 Crisis (Webinar)
Source: Lazard Asset Management, NIRS

A webinar by Lazard Asset Management and the National Institute on Retirement Security (NIRS) on the Economic Implication of the COVID-19 Crisis.

To download the presentation, please click here.

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A Meeting of the Illinois Police Officers’ Pension Investment Fund – May 1, 2020
Source: POPIF

NOTICE: A MEETING OF THE ILLINOIS POLICE OFFICERS’ PENSION INVESTMENT FUND

To be held on Wednesday, May 1, 2020 at 10:00am.

You can view the agenda by clicking here.

Zoom Digital Platform

ZOOM Invite: Public invited through telephone, see agenda for details.

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Recommendations for Trustee Elections, Trustee Training, Annual or Other Meetings of Trustees
Source: Illinois Department of Insurance

All Article 3 and Article 4 Pension Funds established under the Illinois Pension Code

On March 9, 2020, Governor JB Pritzker proclaimed a statewide disaster due to the Coronavirus Disease 2019
(COVID-19) outbreak within the State of Illinois, and again on April 1, 2020 declared a statewide disaster in
response to the exponential spread of COVID-19 (the “Gubernatorial Disaster Proclamations”). On March 20,
2020, the Governor issued Executive Order 2020-10 ordering Illinois residents to stay at home unless
otherwise permitted under the order and that all non-essential business and operations within the State
cease for the remainder of the Gubernatorial Disaster Proclamations. On April 1, 2020, the Governor issued
Executive Order 2020-18 continuing and extending Executive Order 2020-10 in its entirety for the duration
of the Gubernatorial Disaster Proclamations.

The State of Illinois, Department of Insurance, Public Pension Division (Division), has the following
information and suggestions for downstate police and fire, Articles 3 and 4 of the Illinois Pension Code (Code),
pension funds and pension funds boards of trustees for the duration of any proclaimed disaster or stay at
home Executive Order and for a reasonable time thereafter. Any and all good faith efforts by the pension
funds and the pension funds boards of trustees to comply with any statutory or fiduciary duties during the
above identified times shall not be considered by the Division as an examination finding. Most importantly,
each pension fund, as expeditiously as possible, should remotely conduct an annual, special or emergency
meeting to adopt its policies and procedures to be applied during the above identified times. All actions
taken by the pension boards should be by resolution and documented as per its regular practices. The
pensions boards should utilize all correspondence, internet and social media to keep its interested parties
informed.

OPEN MEETINGS AND FREEDOM OF INFORMATION ACT
The above-mentioned Executive Orders should be reviewed for their applicability to the pension boards and
trustees. Additionally, the Attorney General has issued the following guide as to the Open Meetings Act and
the Freedom of Information Act. It is set forth in full in a separate Siren and can also accessed by this
following link: http://foia.ilattorneygeneral.net/pdf/OMA_FOIA_Guide.pdf

TRUSTEES’ TERMS AND ELECTIONS
Any currently serving board members may voluntarily continue their term for up to 6 (six) months. Any such
volunteers should execute a new oath of office or the prior oath should be extended. Insurance carriers or
bond issuers should be notified of the extensions.
Any currently serving board members may also serve until their term is expired and not voluntarily continue
their term.
If trustee elections are held as statutorily required on the third Monday in April (40 ILCS 5/3-128 and 4-121)
or the election will occur during the above identified times, the elections should be done in a remote manner,
such as through the mail, and in compliance with all local, state and federal health and safety mandates.
Alternatively, any statutorily required election can be suspended, delayed or stayed for a period of time until
a special election can be held, as allowed in the statutes. (40 ILCS 5/3-128 and 4-121.) The above guide from
the Attorney General on the Open Meetings Act should be considered as well in conducting any such
elections.

TRUSTEE TRAINING
Any statutorily required initial, annual, ethics or consolidation training should be done remotely. (40 ILCS
5/1-109.3 and 113.18.) Each pension fund board of trustees may, as provided by statute (40 ILCS 5/1-109.3),
extend the deadlines for completion of the training for up to 6 (six) months. Those training providers should
be contacted to determine the time, date and manner in which the respective training will be offered.
ANNUAL OR OTHER MEETINGS

All annual (40 ILCS 5/3-130 (July, October, January and April) and 4-121), special or emergency meetings of
pension boards of trustees, if scheduled for or occurring during the above identified times, should be done
remotely and in compliance with the guide on the Open Meetings Act and all local, state and federal health
and safety mandates. Alternatively, those meetings may be scheduled after the above identified times.
Certainly, non-essential meetings or agenda items should be avoided.
If you have any questions, please contact the Public Pension Division of the Department of Insurance at (800)
207-6958 or by emailing DOI.Pensions@illinois.gov

 

Full Siren: 4-10-2020

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