JCPER Recent Report Indicates that PSRS and PEERS are the Healthiest Statewide Retirement Plans
JEFFERSON CITY, MO (December 1, 2011) – A report issued by the Joint Committee on Public Employee Retirement (JCPER) indicates that the Public School Retirement System of Missouri (PSRS) and the Public Education Employee Retirement System of Missouri (PEERS) are in better financial condition on an actuarial basis than all other Missouri statewide pension plans with assets over one billion dollars.
According to the JCPER report, when comparing the actuarial funded status of all public retirement plans in Missouri with assets over one billion dollars as of June 30, 2011, PSRS and PEERS are two of only three funds that are over 80% pre-funded and the only funds that are over 85% pre-funded. The funded status of a pension plan provides an indication of the overall health of the plan. An 80% level of funding is generally considered the standard for adequate funding. The continued financial strength of PSRS/PEERS is a result of outstanding investment returns over the last two fiscal years, updated actuarial assumptions based on a recent 5-year experience study and a new Funding Policy adopted by the PSRS/PEERS Board in August 2011.
PSRS/PEERS achieved record high investment returns in fiscal year 2011. The Systems earned returns of 21.8% and 21.4%, respectively, for the fiscal year ended June 30, 2011, which were the highest fiscal-year returns for both Systems in over 20 years. PSRS/PEERS’ industry-leading performance and investment strategy were recognized in March of this year when the plans won two prestigious national pension industry awards. PSRS/PEERS was named Large Public Plan of the Year by Institutional Investor’s Money Management Letter, and Plan Sponsor of the Year by PLANSPONSOR magazine. PSRS/PEERS was also recognized as one of four nominees for Institutional Investor magazine’s Hedge Fund Investor of the Year Award. These national pension industry awards and nominations recognize the proven leadership and innovation of PSRS/PEERS in public sector pension fund investments.
PSRS/PEERS proudly partners with Missouri’s public school districts and our members to provide retirement security to over 220,000 active and retired public education employees and their families. Teachers and school employees pay 14.5% and 6.86% of pay, respectively, to help fund their retirement benefits. The Systems strive to apply leadership, innovation and outstanding customer service in order to continue to deliver sound retirement benefits to current and future generations of Missouri’s teachers and school employees.
The total assets of both PSRS and PEERS were approximately $29.5 billion on October 31, 2011, making the combined entity larger than all other public retirement plans in Missouri, and the 42nd largest defined benefit plan in the United States.