1 / 20

WHAT’S UP @ PERSI Judy Aitken SCO Conference October 2007

WHAT’S UP @ PERSI Judy Aitken SCO Conference October 2007. FY 2007 Returns. June 30, 07 return of 20.3% Fund valued at $11,462,578,413.00 105% funded Rank in top 2% of public funds in U.S. COLA expected = 2% Interest on account balances. Customer Service Activities. Employer Surveys

geoffrey-stewart
Download Presentation

WHAT’S UP @ PERSI Judy Aitken SCO Conference October 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WHAT’S UP @ PERSIJudy Aitken SCO Conference October 2007

  2. FY 2007 Returns • June 30, 07 return of 20.3% • Fund valued at $11,462,578,413.00 • 105% funded • Rank in top 2% of public funds in U.S. • COLA expected = 2% • Interest on account balances

  3. Customer Service Activities • Employer Surveys • Sent out to all employers mid-Sept • Help us evaluate our Employer Service Center operations • Establish agenda for employer meetings • Improve our service to PERSI employers

  4. More Customer Service Activities • PERSI Welcome Letter • Sent to employees after 5 months of service or to rehired employees after a 12 month break • Benefits of Base Plan • Benefits of Choice Plan • Sign up on the web • Handbook

  5. Even More Customer Service Activities • Focus Groups -- 401K Choice Plan • Develop communication program for 401K • Focus groups -- employees • Contributors and non-contributors • Focus groups – employers • Payroll and HR staff – difference among all the plans your organization offers to employees • Deliver communication pieces to ee/ers

  6. 401K Choice Plan News • FY 07 balance $295.7 million • Up 31.9% over last year • Average account balance $6,329.43 • Up 32.8% over last year • Active members deferring 9743 • Up 5.9% over last year • Outstanding loans 611 • Up 17.05% over last year

  7. More Choice Plan Activities • New Investment Option available Oct 12 • Mellon Capital Management Wilshire 4500 Index Completion fund replacing Dreyfus Premier Mid-Cap Stock R fund • Automatic transfer of funds from Dreyfus Premier to Mellon Capital on Oct 11 • All participants in Dreyfus Premier have been notified by mail

  8. Processing Center Activities • As of June 30 – 29,426 retirees • Retirement benefits = $38 million/month • 90% remains in the Idaho economy • Washington next most popular state for our retirees • Active members = 68,568 in 701 employer units

  9. Education Programs – “The Beach Boys” • Planning for the Beach • @ employer’s site/2 hours • Topics covered • Base Plan and Choice Plan • Credit card basics & debt elimination • Rip & Sandy-present & future needs • Time value of money/asset allocation • Retirement assessment

  10. More on Education • Cruisin to the Beach • @ employer’s site/2 hrs • Topics covered • Economic outlook • Investment choices & comparisons – 401K, 457, 403b, traditional & Roth IRA’s • Evaluate fund costs vs historical returns • What are index, growth, small & large cap funds

  11. Even More on Education • Retirement’s a Beach • conducted off-site around the state • Topics Covered • Base Plan retirement options • Financial planning & retirement • Social Security & tax implications • Healthcare and Medicare costs • Estate Planning

  12. AND Even More on Education • New for the 60-68 year-young group – active, inactive or retired • Free 4-hour workshop by invite only • Partner with SHIBA, Medicare and Social Security • How do all these benefit programs work together?

  13. Legal Issues for PERSI • Sudan and genocide • War began in February 2003 • 400,000+ have died; 2.5 million refugees • Causes – • Decades of drought, desertification, overpopulation • Baggara nomads take livestock further south for water – to land occupied by non-Arab farming communities • Sudan Govt and Janjaweed militia group attack non-Baggara population leading to major crisis

  14. Sudan • Should PERSI divest from any investments in Sudan? • Should public investment policy include social, political or environmental issues? • What are the costs to PERSI members to divest?

  15. Sudan • Investments regulated in IC 59-1301: • Fiduciaries must act solely in the best interest of PERSI members and beneficiaries for exclusive purpose of: • Providing benefits • Defraying reasonable expenses of administering the system • With care, skill, prudence and diligence and acting as a “prudent Person” . . .

  16. Sudan • PERSI Investments: • No direct investments in Sudan Govt or companies domiciled • Sudan not on “approved County list” – any future investments are prohibited • Task Force estimates the banned investment companies = 24. Involve large world-wide companies such as PetroChina, Rolls Royce, Toyota

  17. Sudan • Sudan’s economy is dependent on oil resources • If PERSI divests, investments will be bought immediately by someone else; • Demand for Sudan oil will continue, especially by China • Public pension funds should not be used to set foreign political policy

  18. Conclusion - Sudan • Legislation requiring divestiture likely unconstitutional • PERSI may voluntarily divest any holdings if consistent with fiduciary duty • Fiduciary duty prevents PERSI from taking action based on non-economic considerations • New Choice Plan “Sudan-free” fund added – available Oct 12

  19. CONTACTS PERSI Answer Center 1-800-451-8228 www.persi.idaho.gov

More Related