Funded Status Ranks Indiana PERF Ahead of National Averages
Indiana fund achieves 96.8 percent funded status
INDIANAPOLIS (Jan. 5, 2007) - The Indiana Public Employees' Retirement Fund (PERF) ranks well ahead of national figures for both public and private pension plans in a key measure of the plan's health.
PERF's funded status of 96.8 percent for all plans in the system showed a 1.5 percent gain as compared with 95.3 percent on July 1, 2005. The funded status for major U.S. company plans was approximately 83 percent while state pension plans were funded at about 87 percent, according to national reports published in 2006.
Funded status is the ratio that measures plan assets, such as invested funds, as compared to liabilities, such as future pension payments.
PERF's favorable funded status is the result of prudent investment management, according to PERF Executive Director David Adams. "Our long-term investment strategy has generated solid returns with responsible risk," he said. "This is good news for those whose retirements depend on PERF, as well as the employers who contribute to the fund."
"A funded status of 80 percent or greater represents a reasonably funded plan," said Douglas Todd with McCready and Keene, actuaries for PERF. "The fact that PERF's combined funded status is 96.8 percent means that the system may be considered to be very well funded," he said.
The Public Employees' Retirement Fund (PERF) is a $15.9 billion retirement fund headquartered in Indianapolis that serves the needs of more than 220,000 public employees and retirees throughout Indiana.
- END -
CONTACT:
Jeff Hutson
Director of Communications
(317) 234-3401
jhutson@perf.in.gov
