Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Categories
Tip of the Day

Tip of the Day Refinance Your Mortgage if You Can Cut At Least One Point

Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

read entire tip

Recently Added
Other Great Sites

Municipal Pension Funds

A pension fund is a plan, or fund which facilitates retirement income to the employees. Municipal pension funds provide pension benefits to employees of the respective municipalities. Every municipal fund offers its members a choice of products, rate of contribution and switching between the funds. Most of the municipalities have their own municipal pension act. The main purpose of this act is to stop the enhancing unfunded liabilities in the municipal pension plans.

Every municipality in the United States must put in the state-mandated smallest amount to any of the pension plans which are established for their employees and this is known as Minimum Municipal Obligation or MMO. To ensure that municipal pension funds plans are adequately funded, the MMO is calculated using actuarial science. Every municipality has to keep the municipal pension funds pension plans solvent, regardless of how much money they have contributed. Moreover, the municipality is responsible for any shortfall between the MMO and the Municipality pension fund contributions. The municipal contributions are a percentage of employees’ wages, plus actual earnings on the pension fund investments. In the year 2008, during the financial downturn, the municipal pension funds faced their huge loss in history, putting pressure on the respective state governments to support them to keep away from pending default. In that year, the municipal pension funds lost around 14.8% of its market value. California Calpers, is the largest public pension fund in the US, reported a loss of 20% for the period ended October 2008. Recent reports suggests that California public employee pension funds are poorer than what predicted earlier. Now it has a shortfall of #520 million. But another report suggests that, Montana’s public pension funds are slowly started to recover, like the stock market. But it is still well below the peak levels.

Municipal pension funds plans are the ones that received a double hit. Before the recession started in 2008, around 80 percent of public pension plans were fully funded. But, by the end of 2009 the figure had fallen to 36 percent. Researchers say that, to return to 80 percent level, the market will take another 2 years. The significant threat to this community’s long term fiscal health is the under-funded pension system.

In South Africa, the Municipal pension funds was formed in the year 1970, with a mission to manage the financial contributions by Local authorities and its members to provide maximum returns on investments. The Municipal pension funds are administered by AKANI Retirement Fund Administrators (Pty) Ltd. The objective of the fund is to receive a minimum annualized return of 3% after inflation. The fund has 18500 members in 5 different provinces.

Discuss It!

Personal Loans Via BG/SBLC/MTN/LC/DLC said:

Dear Partner, Who we are and what we do... We are UK based Financial Services company, we write to introduce our company as financial and investment brokers. Our company can assist you in seeing opportunities, securing project and investment loan funding, bank instruments (Bank Guarantee (BG), Standby Letter of Credit (SBLC)) to aid you secure funds appropriately from any global AAA+ rated banks or top investment house to fund your projects from mid- range to massive projects any where in the world. Our area of specialisation focuses more on helping our clients with securing investment loan and leasing bank instrument (BG or SBLC) from AAA+ rated banks. Contact us today if you have projects that require funding from 1M - 5B and we will be more than glad to advise and work with you. Mr Ronald Rajnesh Gounder Email: grounesh.advisory1@gmail.com Skype ID: grounesh.advisory

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Insider Selling

Insider Selling - Insider selling typically means the running for the hills. It could simply mean company, or corporate executives borrowed too much. Many investors sell more held stock certificates because they are forced to, rather than because these investors want to. The corporate stock certificate investor's insider sales are...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com