Public pension funds urge immediately action on debt crisis

Indonesia stock info - Public pension funds urge immediately action on debt crisis ; resident Barack Obama and members of Congress must act immediately to address the nation’s deficit to avoid a downgrade of the United States by credit agencies, say the leaders of some of the nation’s largest public pension funds that represent more than one trillion dollars in assets.

In a joint letter to Mr. Obama and Congressional leaders, chief executive officers, treasurers and chief investment officers from 10 pension funds wrote that the nation’s deficit poses a threat to America’s economy that “will inflict pain and hardship on all our citizens for many years to come if we fail to act – and act now.”

“America is now a debtor nation and it must show the world that the nation’s word is its bond. It is critical that the debt ceiling be raised to avoid a default,” the letter says.

The letter goes on to say, “We strongly urge Congress to reduce the deficit. Without a credible action plan from Congress to reduce the budget deficit, the U.S. debt will likely be downgraded by one or more rating agencies.

“The idea of America losing its AAA rating was once unthinkable, but now highly likely if our leaders fail to act. If that were to happen, six countries, including France and Germany, will have credit ratings above that of the United States, signaling America’s diminished ability to pay its debt.”

The public pension fund leaders warn than inaction by Congress will cause fallout to be felt all across America.

“It will mean fewer and more expensive loans for homes, cars and college expenses as rates rise and credit becomes even harder to secure than it is now. The decline in the value of the dollar will eat into retirement savings. Businesses will find it too expensive to create jobs. Ultimately and most painfully, economic growth for our nation will stall for years to come and diminish the quality of living across America.” The letter says.

The signers of the letter include Anne Stausboll, chief executive officer of the California Public Employees’ Retirement System and Jack Ehnes, chief executive officer of the California State Teachers’ Retirement System. (source http://www.centralvalleybusinesstimes.com/stories/001/?ID=18965)

The other eight signatories are:

• Ash Williams
Executive Director & CIO
Florida State Board of Administration

• Meredith Williams
Executive Director
Colorado Public Employees’ Retirement Association

• Thomas DiNapoli
New York State Comptroller
New York State Common Retirement Fund

• Janet Cowell
North Carolina State Treasurer
State of North Carolina

• Lawrence M.v.D. Schloss
Chief Investment Officer
New York City Retirement System

• R. Dean Kenderdine
Executive Director
Maryland State Retirement Agency

• John McClelland
Interim Chief Investment Officer
Los Angeles County Employees’ Retirement Association

• Karen Carraher
Interim Executive Director
Ohio Public Employees Retirement System

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