PSRS/PEERS Generate Strong Investment Returns
PSRS and PEERS return 16.5% for Fiscal Year 2014July 15, 2014
Both the Public School Retirement System of Missouri (PSRS) and the Public Education Employee Retirement System of Missouri (PEERS) earned an investment return of approximately 16.5% for the fiscal year ended June 30, 2014 (final audited investment returns will not be available until late August). Assets increased through investment earnings by over $5 billion from the previous year, as PSRS and PEERS benefited from strong returns in the global stock market. The total plan return of 16.5% exceeded both the total plan policy benchmark of 15.4% and the long-term objective (actuarial assumption) of 8.0%. Over long periods of time, PSRS and PEERS continue to produce investment returns that meet or exceed the Systems' objective. The annualized investment return over the last 30 years is 9.9%.
The actuary for PSRS/PEERS will present a report on the assets and liabilities of the Systems at the October 27, 2014 Board of Trustees meeting. At that time, based on the robust investment returns in 2014, it is expected that the funded status of the Systems will increase, indicating the continued strong financial health of both PSRS and PEERS. Additionally, the above average investment returns will most likely allow member and employer contribution rates to remain stable for the 2015-2016 school year (the fourth consecutive year of no contribution rate increases).
"Our goal is to provide solid retirement benefits to our members," said Steve Yoakum, PSRS/PEERS executive director. "Our internal investment staff continues to skillfully navigate volatile markets and produce investment returns that exceed our long-term objectives. This allows us to maintain attractive benefits for our members while also keeping the cost low for all Missouri educators."
The total market value of assets for PSRS and PEERS were approximately $37.8 billion on June 30, 2014, making the combined entity larger than all other public retirement plans in the state combined, and the 44th largest defined benefit pension plan in the United States. For the most detailed PSRS/PEERS investment information, visit the investment section of our website.