1.
PUBLIC PENSION FUNDS FINALLY STEP UP AS LEAD PLAINTIFFS:
According to a PricewaterhouseCoopers study reported
by Plansponsor.com, 56 class-action suits had public pension funds as lead
plaintiffs in 2002. This number compares with 31 in 2001, 19 in 2000 and
18 in 1999. (In fact, two-thirds of all cases with public pension funds
as lead plaintiffs have been filed in the last 3 years!) The real impetus
for this trend came in 1995 when the federal Private Securities Litigation
Reform Act became law. Intended to curb abusive practices in securities
class actions, the law mandates that the entity with the largest financial
interest in a class-action suit be named as lead plaintiff. However, the
phenomenon of public pensions taking the lead grew swiftly after CalPERS
and the New York State Retirement Fund reached a $2.8 Billion settlement
with Cendant in 1999 -- over ten times larger than the previous highest
settlement. The push by pension funds factors in settlement trends: bigger
settlements emerge when funds serve as lead plaintiffs. Since 1995, more
than 50 class actions with public pension fund plaintiffs have been settled
with an average settlement of $87 Million compared with $13 Million in
class-actions suits without public pension funds as lead plaintiffs. Last
year, 16 settlements averaging more than $113 Million were reached in cases
where a public pension fund was lead plaintiff, more than 15 times the
$7.5 Million average settlement otherwise.
2. MIAMI
VERY STRESSFUL:
Perhaps the folks from Governing (see C&C Newsletter for January
9, 2004, Item 2) didn’t see the “Sperling Stress Index.” From
among the 100 largest Metropolitan areas, the Index examines nine different
factors that are associated with stress: unemployment rate, divorce
rate, commute time, violent and property crime rates, suicide rate,
alcohol consumption, self-reported “poor mental health” and
number of cloudy days. Based thereon, the top five most stressful cities
are Tacoma, Miami, New Orleans, Las Vegas and New York. To quote: “Miami
has the highest violent crime rate in our study, as well as one of
the highest property crime rates. Making Miami even more stressful
is the long commute time, a high unemployment rate, and a high rate
of divorce. Despite these factors, Miami residents manage to maintain
a positive mental attitude.” And just to balance things out,
the top five low-stress cities are Albany-Schenectady, Harrisburg-Lebanon-Carlisle,
Orange County (CA), Nassau-Suffolk and Minneapolis-St. Paul.
3.
FLORIDA DC PLAN LURES YOUNGER WORKERS:
As we previously reported, Florida’s defined contribution plan, Public
Employee Optional Retirement Plan, was not attracting the number of employees
anticipated (see C&C Newsletter for June, 2001, Item 12). Even now, only
3.4% of 625,000 state and local workers have opted for PEORP, according to a
Tallahassee Democrat report reviewed by plansponsor.com. However, among nearly
60,000 new hires, who tend to be younger, more than 8% chose PEORP. So, if the
recovery continues, as older employees retire and new ones come in, state officials
expect PEORP figures to grow. PEORP has about $450 Million in assets. Of course,
the Florida Retirement also still offers a defined benefit plan.
4.
FOUR FLORIDA CITIES RANK HIGH AS BEST FOR ENTREPRENEURS:
Dun & Bradstreet and Entrepreneur have announced the results of their 10th
annual search for the nation’s best cities for entrepreneurs. Vaulting
from 15th place in 2002, Minneapolis/St. Paul takes the top spot. The survey
looked into number of new business starts, small-business growth, risk and job
growth. Here are the top 10:
1. Minneapolis/St. Paul
2. Washington, D.C.
3. Atlanta
4. Fort Lauderdale
5. Salt Lake City/Ogden
6. West Palm Beach/Boca Raton
7. Norfolk/Virginia Beach/Newport News
8. Miami (despite the stress!)
9. Charlotte
10. Orlando
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