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Research

Despite Good Returns, Iowa Public Pension’s Unfunded Liability Likely to Grow Slightly

Lack of contributions are the problem for IPERS, critic says.

By Chris Butera

Although solid investment returns have stabilized Iowa’s top public pension fund, the unfunded liabilities are little affected.

A report from the Des Moines Register predicts that the $32.3 billion Iowa Public Employees Retirement System’s $6.8 billion deficit will grow in dollar terms to $7 billion by 2023 before beginning a gradual shrinkage until 2046, when the debt is fully eliminated.

The retirement system returned 7.97% in fiscal 2018, nearly one percentage point above its 7% benchmark, and although its 82.4% funded status is solid, it only grew by one point over the 12-month period. The funding liability only shrank by about two points in the same time.

State Treasurer Michael Fitzgerald, who chairs the IPERS Investment Board, said Iowans “should feel very comfortable with the position that IPERS is in.”

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However, Gretchen Tegeler, president of the Taxpayers Association of Central Iowa and a former director of the state’s Department of Management, said the “striking” factor in the report was the lack of progress on the unfunded liability, attributing the minimal change to a lack of contributions.

“This is because the extra payments being made to offset the unfunded obligation are not large enough to prevent the obligation from growing by an even greater amount,” she told the Register, adding that Iowans should hope there’s no downturn in the next five years.

“The system remains vulnerable to another downturn, and anyone who is relying on IPERS should have an interest in exploring alternatives for reducing risk,” Tegeler said.

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Home > News > Corporate Moves > Dutch Metal Pensions Firm MN Losing Half its Board
Corporate Moves

Dutch Metal Pensions Firm MN Losing Half its Board

Liesbeth Sinke is exiting the organization while Hendri den Boer transfers to its asset management unit.

By Chris Butera

MN, the $148.2 billion Dutch pension organization and asset manager for the PMT and PME retirement plans, faces some turbulence as it loses half of its four-member executive board next year.

Liesbeth Sinke, the firm’s chief financial and risk officer, will depart, and Hendri den Boer, director of pensions and insurance, will transfer to an asset management role within the company.

The changes will take effect February 1.

Sinke joined MN in 2016 to improve its IT department, and has also led innovations in financial policy and risk management decisions. She previously worked at NNIB, a subsidiary of ING, plus at Marsh, Aon, and ABN Amro.

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“For me, it now feels like a good time for the next challenge,” she said. Sinke’s new role and company were not disclosed.

Den Boer joined MN in 2015, and said his reason for the move was to focus on content that better suits his econometrist background. He previously worked for pension insurer NN, and sits on the supervisory boards of Onderlinge’s-Gravenhage and Dutch carmaker ANWB’s pension fund ($1.7 billion).

“After almost a whole career in general management and the last few years as director of pensions and insurance within MN, I recently felt the need to shift the emphasis in my work from managing the operation to more depth and analysis,” he said, adding that he is happy that he was able to do this while staying with MN, “where I feel at home.” 

MN has not named Sinke and Den Boer’s replacements, and added that these changes are not related to Norbert Hooger’s June promotion to chief executive.

Prior to Hooger’s appointment, it was determined Sinke, den Boer, and Gerald Cartigny of the asset management division, would be fulfilling that role after the former CEO, Rene van de Kieft, was scheduled to leave in July until the fund found a new head.

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