Leo Kolivakis's blog

The General Accounting Standards Board, or GASB, is likely to move toward changes that would increase the pension liability that local governments display on balance sheets by tens of billions of dollars. If the modifications are approved, many already cash-strapped states and municipalities would likely have to increase the amount they are supposed to pay annually to their pension funds to help cover the shortfall. As if that isn't bad enough, federal criminal investigators are looking into possible wrongdoing involving investment transactions of public pension funds including Calpers, the nation's biggest public pension fund. How many more pension bombs are set to explode?

Former Bank of Canada Governor David Dodge is adding his voice to the debate over pension reform, calling for a voluntary component to the Canada Pension Plan. “Let’s not kid ourselves, middle and upper middle Canadians now in their prime earning years are going to have to save more and expect to retire later in life than they hoped to do,” said Mr. Dodge.

The Ontario Teachers' Pension Plan's £389 million deal for Britain's lottery company is a sign that private equity firms should watch out, The Wall Street Journal says. Noting that Teachers won out in a race against Europe's CVC Capital Partners, the newspaper's Heard on the Street column says it could be the beginning of a broader trend. I have my doubts...

As Greeks celebrated a scaled-down parade for Independence Day, an IMF-EU accord was reached in Brussels, but many questions remain. China is watching nervously, increasingly worried about the large chunk of its $2.4 trillion (£1.6 trillion) of foreign reserves held in eurozone bonds. No wonder Trichet reversed course and came out in support of the deal...

Finance Minister Jim Flaherty announced plans for a series of town-hall meetings and expert consultations aimed at reforming Canada's pension plan. I was invited to speak at the upcoming Standing Senate Committee on Banking, Trade and Commerce and welcome your thoughts on this important matter.

They're back! Facing severe funding shortfalls, public pension funds are popping a few blue pills, horny as ever for hedge funds and other alternative investments touting absolute returns. They should be careful or else they risk catching the next systemically transmitted disease...

Pension plans for state government employees today report they are underfunded by $450 billion, according to a recent report from the Pew Charitable Trusts. But according to one expert, this vastly underestimates the true shortfall, because public pension accounting wrongly assumes that plans can earn high investment returns without risk. His research indicates that overall underfunding tops $3 trillion. Will pension woes deepen the financial crisis?

As the House gets ready to pass a "historic" bill on health care reform, let me introduce you to the real crisis in health care...

Europe faces a commercial property debt timebomb with almost €1 trillion (£896bn) outstanding from the sector and a quarter of that potentially distressed. The UK accounts for 34% of the €970bn total, with Germany second with 24%. Not to worry, global pension funds are busy snapping up properties but do they really know how long it will be before this crisis blows over? And what if it gets a lot worse before it gets better? Are pensions prepared to deal with those losses?

A recent joint poll by Responsible-Investor.com, the Network for Sustainable Financial Markets and AQ Research, showed more than 90% of investment professionals believe moral hazard has increased. And yet, global pension funds and wealth funds who manage trillions of dollars have not taken the lead to push for financial reforms. Why do they acquiesce, and not push for meaningful post-crisis reforms?

One of the world's largest pension funds is suing Bank of America for more than $90m over its 2008 takeover of Merrill Lynch, claiming the banking giant failed to disclose the full extent of losses at the US investment bank. It's about time pensions got tough, but is it too little, too late?

New Jersey Governor Chris Christie proposed a $29.3 billion budget that would suspend property-tax rebates, skip the state’s $3 billion pension contribution and fire 1,300 workers next year. Not to worry, the state pension fund is investing billions into hedge funds and other alternative investments to get them out of their pension hole. I wish them luck...

“The private equity industry always pitches how constructive it is as an investor force to create jobs and growth,” says Mr. des Pallières. “But there are private equity funds that get rich by breaking companies and making others poor — whether they are creditors, states or employees.”

Bill Hemling, a widely respected agricultural economist, told the Kansas City Star that “we’re heading for a recession we haven’t seen the likes of since the 1930s.” Let's pray he is is wrong — again.

When you factor in pension obligations, just how bad are the debt profiles of individual countries? Trust me, you don't want to know...