Pennsylvani School Employees' Retirment System

A message from Jim Sando, member of the PSERS Board of Directors and former President of MER:

As one of the five members of he PSERS (Public School Employees Retirement System) board representing active/retired members, I am happy to report that our fund is doing well. PSERS is the thirteenth largest system in the US. As such it has a great deal of market clout and knows how to use it. Since the market downturn in 1999-2000, the fund has grown from an asset base of 53.2 Billion dollars to 67.2 in the 2007 fiscal year. With a 2007 funding ratio of 85.8%, PSERS ranks among the best in the field.

With over 264,000 active and over 168,000 retired members (109,000 vested/inactive as well), PSERS serves a large part of Pennsylvania’s citizens, pouring billions into the state’s economy each year.

The fund, manages by both staff and outside investment professionals has managed to beat the actuarial assumed rate of 8.5% over the past ten years, even when the market downturn in the late 90’s and early 2000 are taken in to account. With a 1-year return of 13.82 % and a ten-year average of 9.48%, PSERS consistently ranks as the top performer in the industry.

That’s all well and good, but I know what you’re really thinking about. What about a COLA? As hard as it may be to believe, PSERS does not have the statutory power to grant COLA’s. That power rests with the legislature. There is a current bill, supported by ALL of the states retiree groups, that seems to have some strength. It is a graduated formula, with the greatest percentage (25%) going to those who retired prior to 1990, and decreasing as for those who retired more recently. As always, it doesn’t hurt to let you legislator (both the state house and senate) know where you stand. Call them and ask them to sign o n to the bill and to ask their leadership to MOVE the bill.

I’d like you to know that the members of the PSERS Board of Trustees work with the staff to ensure the fund continues to maintain its leadership position. We take very seriously our responsibility to prudently invest your retirement dollars.

The Pennsylvania Public School Employees' Retirement System (PSERS) announced strong investment return results for the quarter and one-year period ended September 30, 2007.

The pension fund generated returns of 3.73 percent for the quarter and 22.58 percent for the one-year period ended September 30, 2007. The quarter and one-year period investment returns place PSERS in the top 10 percent of the public pension plan database compiled by Wilshire Associates.

PSERS' investment returns of 18.04 percent for the three-year period and 17.88 percent for the 5-year period ended September 30, 2007 ranked in the top 1 percent of the Wilshire Associates' public pension plan database.

PSERS' Chairman Melva Vogler commended the Fund's recent investment performance stating: "I am pleased to report PSERS' positive third quarter investment performance. PSERS Board and Investment Staff have worked hard to develop a diversified, long-term investment policy, which has proven valuable during the recent market volatility. PSERS continues to produce top decile returns and remains one of the top performing public pension funds in the country."