Connect with us

Illinois Gov. Faces Legal Pushback on Pension Reform

Published

on

On December 27, a group of eight members of the Illinois Retired Teachers’ Association filed a class action lawsuit in Cook County Circuit Court seeking to void an amendment limiting pension benefits set to go into effect on June 1, 2014.

The eight, through law firm Tabet DiVito & Rothstein LLC, argue that Public Act 98-0599, which was approved by the state legislature and signed into law by Illinois Governor Pat Quinn, would violate what is known as the Pension Protection Clause of the Illinois Constitution. The clause, which was ratified in the 1970s, states that the benefits of pension or retirement system membership “shall not be diminished or impaired.”

Furthermore, the lawsuit states that the courts have “consistently invalidated amendments to the Pension Code where the result is to diminish benefits,” the lawsuit stated citing the court’s decision of a 1996 case.

The lawsuit states that the new law would impair or diminish pension benefits in three ways: it would lower the rate at which pensions would be calculated, it would raise the retirement age for certain members, and it would impose a new cap on pensionable salaries.

But given the pension’s US$ 100 billion in unfunded liabilities, Governor Quinn is not about to back off a deal that proponents say could save about US$ 160 billion over the next 30 years.

“We believe the new law is as constitutionally sound as it is urgently needed to resolve the state’s pension crisis,” Quinn spokeswoman Brooke Anderson said in a statement.

Funds and Ownership, KKR Partners with Shinhan Financial

Published

on

South Korean financial giant Shinhan Financial Group Co., Ltd. reached a preliminary agreement with KKR & Co. to form a series of global buyout funds that could raise up to 5 trillion KRW. KKR and Shinhan signed a Memorandum of Understanding (MoU) in Seoul in early October. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Norwegian Government Recommends SWF Remains at Central Bank

Published

on

There was speculation that Norway Government Pension Fund Global (GPFG) could be managed outside of Norges Bank. The Norwegian government shot down this idea and recommended Norway’s GPFG remain in Norges Bank. This recommendation came in the form of a white paper submitted to the Norwegian Parliament, Stortinget.

Norway’s Minister of Finance Siv Jensen, commented in a press release, “The Government proposes a new and modernised governance structure for Norges Bank. Moving forward, this new structure lays the foundations for the sound management of the central bank and of the GPFG.”

Some Central Bank Recommendations

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Invesco Buys OppenheimerFunds for $5.7 Billion

Published

on

Invesco Ltd. signed a deal to acquire OppenheimerFunds, Inc. from Massachusetts Mutual Life Insurance Company (MassMutual). In turn, MassMutual and the OppenheimerFunds employee shareholders will receive a combination of common and preferred equity consideration, and MassMutual will become a significant shareholder in Invesco, with an approximate 15.5% stake. This strategic transaction will bring Invesco’s total assets under management (AUM) to more than US$ 1.2 trillion. The transaction is expected to close in the second quarter of 2019, pending necessary regulatory and other third-party approvals. The transaction gives Invesco access to more third-party distribution platforms.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.