Pension and Benefit Administration Best Practices

Best Practices

Communicating Health-Care Benefits to Employees and Retirees

Governments should develop effective communication strategies that support their health-care benefit goals.

Best Practices

Sustainable Pension Benefit Tiers

Jurisdictions considering new benefit tiers should examine the following issues: A government’s authority to revise its pension benefits, the overall goals it wants to accomplish by doing so, and the effect of such changes on the workforce; and the financial impacts resulting from changes to pension plan design, as well as the effects on employees.

Best Practices

Developing a Policy to Participate in Securities Litigation Class Actions

Every Public Pension Plan should develop and adopt a policy setting forth procedures for monitoring and participating in class action securities litigation.

Best Practices

Developing a Policy for Retirement Plan Design Options

State and local governments should have a policy statement that will guide their on-going plan design decisions.

Best Practices

OPEB Governance and Administration

Sponsoring governments should establish a clear, well-documented governance structure to guide governing bodies and plan administrators.

Best Practices

Governance of Public Employee Postretirement Benefits Systems

A state or local government or other designated governing entity should establish rules of governance for its postretirement benefit systems that define the key elements necessary for trustees and other fiduciaries to fulfill their responsibilities, in accordance with fiduciary standards.

Best Practices

Preparing an Effective Summary Plan Description

All state and local government pension plans should prepare an SPD that completely, accurately, and clearly describes the significant components of the pension plan for participants.

Best Practices

Educating Employees about the Adequacy of Retirement Benefits

Government employers and plan administrators should educate employees about retirement income and include the following considerations when preparing the education program.

Best Practices

Selecting Third-Party Investment Professionals for Pension Fund Assets

Governments should exercise appropriate due diligence in their selection of investment professionals.

Advisories

Advisories

The Use of Early Retirement Incentives

State and local governments should not use ERIs for a variety of reasons.

Advisories

Deferred Retirement Option Plans

Government defined benefit plans should not include deferred retirement option programs for a variety of reasons.

Advisories

In-Kind Asset Transfer to Defined Benefit Pension Plans

GFOA Advisories identify specific policies and procedures necessary to minimize a government’s exposure to potential loss in connection with its financial management activities. It is not to be interpreted as GFOA sanctioning the underlying activity that gives rise to the exposure.