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.
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.
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.
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.
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.
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.
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.
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.
Jasmine Nachtigall-Fournier, Co-Founder and President of GovInvest Inc., discusses the company's mission to address the significant fiscal challenge of unfunded pension and OPEB liabilities in government. Founded in 2014, GovInvest developed software to visualize complex information in actuarial valuation reports, enabling agencies to perform analyses without requiring actuaries. The software's live actuarial calculations, detailed analysis at the tier and bargaining group levels, and ability to adjust assumptions provide agencies with comprehensive, accurate information for policy development and long-term financial planning.
GovInvest, a California-based pension, OPEB, and labor software company, addresses the significant fiscal challenge of unfunded pension and OPEB liabilities faced by cities and counties. The platform provides visualizations and the ability to test different pension and funding scenarios, allowing local governments to make more informed decisions. GovInvest's software, which is user-friendly and easy to use, assists agencies in understanding and managing their pension and OPEB liabilities, ensuring that decisions made today consider future challenges and avoid insurmountable problems years down the line.
GovInvest, founded by Jasmine Nachtigall-Fournier and Ted Price in 2014, addresses the challenges associated with managing pension payouts and unfunded liabilities in government agencies. Pensions, common among public employees, often lead to discrepancies between allocated and owed funds, referred to as "unfunded liabilities," totaling an all-time high of six trillion dollars. GovInvest's software platform offers visual and digestible analysis of actuarial reports, aiding government finance officials in making informed decisions, and has garnered success with over 200 government agencies as customers, including the state of California and major cities like Seattle and Portland.