Future-Proofing Public Sector Workforce: Navigating the Retirement Surge

‍Governments around the world are facing a unique challenge as the “Grey Wave” — an increasing number of workers retiring — cuts essential staff and creates a massive gap in the workforce. As veteran employees retire in large numbers, governments must find ways to adapt to these vacancies while maintaining critical services. Compensation planning, traditionally focused on managing personnel costs, must now also consider how to attract, retain, and effectively utilize a new generation of public servants.

How Counties can Unlock Workforce Analytics with Remaining ARPA Funds

Forward-thinking agencies are using ARPA funds to make investments with a lasting impact. For those, a Workforce Analytics Platform presents a unique opportunity to optimize the use of remaining ARPA dollars for decades to come.

Navigating CalPERS’ 2023 Valuations

This newsletter provides practical insights, tools, and strategies for local agencies to better navigate and interpret their CalPERS actuarial valuations.

CalPERS 2024 Investment Return & Forthcoming 2023 Valuation Insights

This newsletter provides essential updates on CalPERS' investment returns and actuarial valuations, helping local agencies plan for future financial obligations and adjustments. Stay informed to effectively manage your agency’s pension and payroll commitments.

GovInvest’s Live Compensation Module paves the way for agile workforce strategies

GovInvest’s pioneering Live Compensation Module is transforming how public sector leaders address compensation challenges. The Live Compensation Software is the latest innovation in the GovInvest Enterprise Platform, integrating market data with internal personnel costs. The result is comprehensive workforce analytics and confident decision-making.

Q1 2022 Pension Industry Roundup

The Actuarial Standards Board (ASB) has finalized an updated Actuarial Standard of Practice (ASOP) No. 4, addressing defined benefit pension plans' key issues like cost allocation procedures and actuarial valuations, effective from February 2023. The National Conference on Public Employee Retirement Systems (NCPERS) annual study revealed a 2021 funding level of 74.7% among respondents, an improvement in funding, and a trend of reducing investment return expectations. S&P Global Ratings highlighted key pension and OPEB considerations for 2022, including strong plan performance, rising inflation impact, and uncertainty surrounding COVID-19's demographic impacts and government payroll levels.

Managing Revenue Volatility and Retirement Liabilities in an Unpredictable World

In an issue brief by Chris McIsaac, a GovInvest Pension Thought Leader, the economic challenges stemming from the COVID-19 pandemic continue to impact public finance officials planning for an uncertain future. The brief explores historical revenue volatility and trends in public pension funding, highlighting the challenges faced by policymakers. It emphasizes the role of technology in supporting planning and decision-making, focusing on forward-looking projections to assess risks, tradeoffs, and effectively manage uncertainty in the areas of revenue, pension, other post-employment benefits (OPEB), and labor costs.

Q2 2022 Pension Industry Roundup

Market volatility has led to a decline in public pension funding levels, with the 100 largest US public pension funds experiencing a -3.4% return in quarter 3 of fiscal year 2022 and an additional -4.8% in April alone, wiping out the historic gains of fiscal year 2021. Despite near-term fluctuations, the impact on required contributions is not immediate, as plans often employ asset smoothing policies, recognizing gains and losses over time. Rising inflation has brought Cost of Living Adjustment (COLA) policies into focus, as retirees and policymakers consider the potential erosion of fixed pension payments, with NASRA highlighting the need for thoughtful COLA design amid current inflation levels exceeding existing caps. State governments, buoyed by strong fiscal positions, are allocating surplus funds to pension debt reduction, with states like Connecticut, Indiana, Arizona, and Missouri making significant contributions to address pension obligations and plan for sustained fiscal health.

All Pension Forecasting is Local

GovInvest's financial forecasting solutions, specifically designed for state and local governments, emphasize attention to pension and budget details, offering flexible technology to support reliable financial forecasts. The Total Liability Calculator, a foundational tool customized for each client, considers factors such as the number of plans, distinguishing between single or multi-employer structures, and accounting for reserve funds, pension obligation bonds, and dedicated funding sources. By tailoring the actuarial and budget projection tool to jurisdiction-specific circumstances, GovInvest aims to provide actionable insights and critical analysis for effective long-term management of pension liabilities.

5 California Startups Are Shaking Up GovTech

CivStart Accelerator has spotlighted five California-based technology startups addressing critical needs in state and local government. Emgage in Pasadena provides a customizable no-code platform for local governments' app development, while JusticeText in Irvine streamlines video evidence analysis for public defenders. San Jose's Exygy focuses on civic-minded design solutions for challenges like affordable housing, GovInvest in Manhattan Beach offers customized software for financial projection modeling, and Embodied Labs in L.A. provides a virtual reality training platform for caregivers to enhance their understanding and effectiveness.

The Mission-Critical Role Financial Forecasting Plays in Government

Creating an effective and realistic budget for local government involves practicing financial forecasting, a fiscal tool that displays future financial projections by analyzing the organization's fiscal past. Financial forecasting benefits governments by promoting transparency, fiscal discipline, anticipation of complications, and sustainability, offering a living document that evolves with time. Utilizing visual forecasting technology, such as GovInvest's software, provides a customized approach, allowing municipalities to access real-time data and transparency for informed decision-making in areas like pension, OPEB, and labor costing.

Revisiting Principles for ARPA Planning in 2022

The American Rescue Plan Act (ARPA), a $1.9 trillion economic stimulus package, remains a key focus for state and local finance officials in 2022, with $350 billion allocated for State and Local Fiscal Recovery Funds over the next five years. While the majority of the funding is yet to be spent due to program design and legislative deadlines, ARPA presents a unique opportunity for community benefits. Finance officials are advised to revisit the Government Finance Officers Association's guiding principles, emphasizing the temporary nature of ARPA funds, the importance of awareness and collaboration in spending plans, and the need for thoughtful, multi-year considerations to maximize lasting benefits.