This is an “open letter” status report on the MHSPRS retirement fund from PERS executive director, Pat Robertson. Pat says, “members and retirees of the MHSPRS can be assured that their benefits, including annual cost-of-living adjustments to retirees, are contractually protected and guaranteed by law.” Here are excerpts from her open letter: “MHSPRS investments are well diversified in a strategic asset allocation mix that includes U.S. and foreign stocks, fixed income bonds, real estate, and cash. This mix helps to moderate the effect that any segment of the market may have on the performance of the total fund and can help offset some of the potential losses in the portfolio during times of negative volatility like the market cash of 1987, investment bank failures in the 1990s, the Enron and WorldCom debacles, and event today’s unprecedented financially depressed times. Maintaining a level head during difficult times is crucial. This means avoiding the impulse to buy or sell quickly, and it means making tough decisions to ensure the continued financial integrity of the system. One such decision made by the administrative board of MHSPRS was to recommend an increase in the employee contribution rate from 6.5% to 7.25% effective July 1, 2008. Another decision made by your board was to delay consideration of implementing the COLA compounding phase-in until the actuary could determine the impact that the economic downturn might have on the amortization period as of June 30, 2009. Based on the financial results for MHSPRS as of December 31, 2008, the actuary was unable to certify any reduction in the age at which the COLA begins to compound because, at that point, the amortization period had increased beyond 20 years, although it had fallen below 20 years as of June 30, 2008. And, unless there is a significant market correction prior to June 30, 2009, it is unlikely that the actuary will be able to certify a reduction in the age at which the COLA begins to compound without a significant increase in the employer contribution rate. …PERS will persevere through this current crisis. It will persevere in providing the $1.5 billion in benefits annually to nearly 78,000 retirees, including more than 650 retirees from MHSPRS. It will persevere in adequately preparing for the future of the more than 166,000 employees working in state government, public schools, universities, community colleges, municipalities, legislature, and highway patrol. And it will persevere in providing economic stimulus to the state.” We have invited Pat Robertson to submit articles for the web site and for our Mississippi Trooper for future publications. Thanks Pat and MHSPRS board members for being good stewards of our trooper retirement funds!
POSTED IN: Alerts,Statewide News
