In brief: PSERS, SERS post performance as unfunded liability grows
The Public School Employees' Retirement System and State Employees' Retirement System announced investment returns last week.
For PSERS, which operates on the state fiscal year of July to June, the calendar year return for 2014 was 8.8 percent, adding more than $4.2 billion in net investment income.
The biggest contributor was real estate investments, which were up 17.2 percent in 2014.
PSERS posted a return of 0.2 percent for the quarter that ended Dec. 31, according to a March 13 news release. For its fiscal year, which ended June 30, 2014, the system’s unfunded liability was $35.1 billion.
Meanwhile, SERS completed its year, which operates on a calendar basis.
SERS posted investment returns, net of fees, of 6.4 percent, or about $1.7 billion last year, according to a March 11 news release. For the fourth quarter, its portfolio returned just 0.3 percent.
Alternative investments led the way with a 13.1 percent annual return, according to SERS. The system’s unfunded liability grew to $18.2 billion compared with $17.9 billion at the end of 2013, said spokeswoman Pam Hile.
“Current funding projections show the unfunded liability peaking in the 2015 actuarial valuation at about $18.4 billion and then dropping each year after that,” she said.
PSERS had assets of about $51.7 billion and membership of more than 263,000 active school employees at the end of 2014. SERS had assets of more than $27 billion, with nearly 230,000 members.