Texas public employee pension funds foil fear of 2020 pandemic
AUSTIN, Texas, July 20, 2021 / PRNewswire / – Pension systems for Texas city firefighters, police and municipal workers saw gains in 2020 despite the stock market falling more than 35% from top to bottom in March and april 2020 in response to the Covid-19 pandemic.
Despite this recent significant decline, the 42 members of the Texas Association of Public Employee Retirement Systems who responded to an annual survey achieved average actuarial goals of 7.4% in annualized returns for the five-year period. Their combined portfolios amounted to $ 54.98 billion at the end of the investigation period. The median target rate of the 100 pension systems monitored by the Pension Review Board of Texas is 7.25%.
The survey, conducted for TEXPERS by the Maples Group, also confirmed that local pension systems that provide a secure retirement to public servants have succeeded in diversifying their portfolio assets to smooth the market roller coaster of the past 20 years. The systems outperformed the average of 5.2% of an overall industry standard aggregate index of 60% stocks and 40% bonds and weathered three major bearish market events with some of the largest levies on the stock markets since the Great Depression.
“Pensions must succeed in the long run in matching overall performance to the decades of career of public sector employees,” said James smith, the chairman of the board of TEXPERS. “Pension systems must deliver on promises from city employers for deferred retirement security benefits. This survey, perhaps more than any other, reflects the skills of pension trustees.”
TEXPERS has published its “Texas Public Employee Retirement System Asset Allocation and Investment Performance Report“during its annual conference May 23-26. Approximately 450 people registered and attended the event at the Austin Marriott.
NOTE TO EDITORS: The overall global index mentioned in the third paragraph is the Morgan Stanley Capital International All Country World Index (equities) at 60% and the Bloomberg Barclays US Aggregate Bond Index at 40%.
The Texas Association of Public Employee Retirement Systems is a voluntary, nonprofit association that provides education and legislative advisory services to directors, trustees, professional service providers, and employee groups who manage corporate money. the retirement of police officers, firefighters and municipal and district employees in cities across Texas. Pension systems for 68 TEXPERS members $ 32.7 billion in retirement assets for 57,728 active participants and 60,737 retirees and beneficiary annuitants.