PERS Board meeting set to begin. PERS will announce the funding level at this meeting. Portfolio grew to $25 billion off an 18% return on investment. Good numbers. The variable is the growth in retirees. I estimate it to be around 4,000. That is the highest growth in several years if true. However, the funding level should increase one to two points. Stay tuned. Update:
Funding level improved to 61% from 57.7%. Portfolio increased to $22.5 billion and return on investment was 18% for $4 billion although that was smoothed to $1.1 billion. Unfunded liabilities are $14.4 billion. The growth in retirees was a little over 3,300. More to follow later.
Funding level improved to 61% from 57.7%. Portfolio increased to $22.5 billion and return on investment was 18% for $4 billion although that was smoothed to $1.1 billion. Unfunded liabilities are $14.4 billion. The growth in retirees was a little over 3,300. More to follow later.
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8 comments:
I am interested to see if they discuss the Deferred Comp plan and the debacle that it has been since they switched TPAs.
18% return for last year so, therefore, the PERS board will direct staff to build in an assumption of 25% annual growth going forward.
Wow! 5 years of amazing returns and we will only be 3/4 of the way to MINIMUM funding levels (for public pensions; 1/2 way for private).
it will keep getting better due to the smoothing rules.
4:54, the smothing bump is essentially over. We smoothed out the last big loss and are now smoothing relatively equal gains (save for a weak year in the middle). By the time those returns are rolled-off, we will have had another market correction and no bump will be found. Consider, the run of the past few years is amazing (among the better mult-year periods) and we are still sucking wind in PERS.
Maybe I'm wrong, but I think there is going to be a HUGE new batch of retirees in the next decade. Not sure PERS is keeping up.
I'll write a more complete post this week. This was meant to give you a snapshot. The info was taken from the actuarial report.
Shadowfax, get lost. Not approving your comment. Too bad.
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