|
cent fully funded. That means its assets are about 97-98 percent of the value of all potential future benefits to be paid to retirees in state and local government agencies.
• In contrast, the average pension fund in other states is only about 75 percent funded, Wylie said.
• When the Retirement System is fully funded, pension payments increase by 3.1 percent the following year. Because the system is slightly less than fully funded, the cost-of-living adjustment for retirees next July will likely be a little less than 3.1 percent, Wylie said.
• The system has more than 74,000 members, and most are still working. It includes employees of state government, cities, counties and school districts.
• The system's assets peaked at $8.2 billion before the national recession, but fell to $5.6 billion by June 2009. After gaining 18.7 percent two years ago and nearly 26 percent a year ago, it had about $7.93 billion as of June 30, 2011. With the small drop in the past year, it "pretty much held its own," Tschetter told the legislative committee.
• The system had set a goal of averaging a 7.75 percent annual return, but the system's board changed that recently to operate the system assuming a 7.25 percent annual return for the next five years and 7.5 percent a year after that.
• Clark said investment earnings will likely be modest in the next few years, but should pick up in five to 10 years as the economy recovers.
• "The volatility in the economy and the political environment is so high you never know if we're facing a slower growth, a kind of a poorer future for all of us. Ultimately, that would slow down returns," Clark said.
• The Legislature's Executive Board approved a $220,979 bonus for Clark because the South Dakota Retirement System has outperformed similar systems. His annual bonus is based on a formula that takes into account the South Dakota's sys (Continued on page 37)
|
|
