Federal authorities announced Monday that Illinois has agreed to settle a securities-fraud charge that accused the state of misleading investors about the financial health of its public-employee pension systems, which are now $96.7 billion short of what's needed to cover promised retirement benefits.

Puerto Rican officials on Wednesday proposed what they called "severe" cost-saving measures designed to help rescue one of the U.S. territory's public pension systems that is on the brink of collapse.

Federal employee labor unions are trying to soften the blow for more than 1 million government workers who may be forced to take unpaid time off if mandatory budget cuts kick in this week.

South Carolina's pension fund investments rebounded in the second half of last year, pushing earnings above 12 percent for 2012 after fees.