State pension funds

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jefmafnl
Posts: 406
Joined: Sun Mar 25, 2007 7:11 am

State pension funds

Post by jefmafnl » Sun Apr 01, 2007 3:22 pm

We all have Morningstar for lots of info on mutual funds, and the press reports annually on the returns of the Harvard and Yale Endowments.

But what about those of us who have all or part of our pensions invested with, and /or future health benefits dependent on, state public employees' or teachers' retirement funds (such as California PERS or Ohio STRS), on either a defined contribution or a defined benefit basis? Some of us are concerned about the investment policies followed by these funds. Is there a site comparing the asset allocations and annual returns of these funds, or does one have to check the websites of individual funds?

Joel

chaz
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Joined: Tue Feb 27, 2007 2:44 pm

Post by chaz » Sun Apr 01, 2007 4:43 pm

What CalPERS investment policy troubles you?
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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dm200
Posts: 18775
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

f the pension is a

Post by dm200 » Sun Apr 01, 2007 6:17 pm

defined benefit plan, from the recipient's point of view, performance doesn't matter much - the taxpayers are on the hook. The taxpayers are the ones who are most affected.

dan

macpiano
Posts: 92
Joined: Tue Feb 20, 2007 3:39 pm
Location: Delaware

Our pension in the State of Delaware

Post by macpiano » Sun Apr 01, 2007 6:43 pm

is

Total is about 5 billion

I rounded off

47% Domestic Equities
19% International Eq.
1.4% Cash
12% Alternative (don't know what they invested in)
3.5% International Fixed
17% Domestic Fixed

total Return last year 12.4%

five year 6.9%
ten year 9.2%
15 year 10.8%

It's public knowledge and they send it to us once a year I think.

Gary

jefmafnl
Posts: 406
Joined: Sun Mar 25, 2007 7:11 am

Post by jefmafnl » Mon Apr 02, 2007 11:54 am

chaz, my Mom relies on Cal PERS, and I think she's concerned about their use of "alternative investments" (hedge funds, etc.).

dm200, even in defined benefit plans, if the investments perform poorly, the employer and employee contributions can be increased, so it's in employees' interest to have a well-managed plan.

Joel

chaz
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Joined: Tue Feb 27, 2007 2:44 pm

Post by chaz » Mon Apr 02, 2007 1:10 pm

Joel, tell your mother to relax. CalPERS has multi-billions invested. So much that it started investing in real estate. It will be around LONG after we are gone.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

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alec
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Post by alec » Mon Apr 02, 2007 2:43 pm

jefmafnl wrote:chaz, my Mom relies on Cal PERS, and I think she's concerned about their use of "alternative investments" (hedge funds, etc.).

dm200, even in defined benefit plans, if the investments perform poorly, the employer and employee contributions can be increased, so it's in employees' interest to have a well-managed plan.

Joel
Joel,

According to CALPERS, the alternative investment strategies [AIM] is only 5.6% of assets.

- Alec

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