Funded Status Shows Indiana PERF in Excellent Financial Shape
Solid investment returns boost system to 99.8% funded
INDIANAPOLIS (Dec. 26, 2007) – Buoyed by solid investment returns in the 2007 fiscal year, the Indiana Public Employees' Retirement Fund (PERF) reached a funded status of 99.8 percent at the July 1, 2007 start of the fund’s 2008 fiscal year.
A key measure of pension plan health, funded status is the ratio that measures plan assets, such as invested funds, as compared to liabilities, such as future pension payments. The information was provided to PERF’s Board of Trustees Dec. 21 as part of a report provided yearly by the fund’s actuary.
PERF's funded status for all plans in its system showed a 3 percent gain as compared with 96.8 percent on July 1, 2006. The funded status of major U.S. company plans is approximately 89 percent according to a 2007 Mercer Investment Consulting report, while state pension plans are funded at about 88 percent according to the 2007 Wilshire Report on State Retirement Systems.
“This funded status reflects solid returns on prudently-invested PERF funds,” said PERF Executive Director Terren Magid. “The fact that we are significantly ahead of national averages for both corporate and public plans clearly illustrates our commitment to managing this plan for the long-term benefit of our members.”
PERF’s 2007 Comprehensive Annual Financial Report, also provided to the board Dec. 21, notes the plan’s net assets grew by nearly $2.5 billion, while its investments delivered a 17.8 percent annualized return in the fiscal year ending June 30, 2007. The annualized return beat a 17.6 percent overall benchmark and exceeded the targeted 7.25 percent actuarial rate of return. The plan grew to approximately $17.2 billion in assets in the fiscal year.
About PERF
The Public Employees’ Retirement Fund (PERF) is a $17.2 billion retirement fund headquartered in Indianapolis. PERF serves the needs of more than 220,000 public employees and retirees throughout Indiana.
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CONTACT:
Jeff Hutson
Director of Communications
(317) 234-3401
jhutson@perf.in.gov
