State Employees’ Retirement Fund Market Value Altimeter
November 2006
| Valuation Date |
Market Value (in billions) |
| 9/30/06 | $10.836 |
| 8/31/06 | $10.699 |
| 7/31/06 | $10.497 |
| 6/30/06 | $10.494 |
| 3/31/06 | $10.590 |
| 12/31/05 | $10.273 |
| 12/31/04 | $9.785 |
| 12/31/03 | $9.369 |
| 12/31/02 | $8.573 |
| 12/31/01 | $9.914 |
| 12/31/00 | $10.890 |
| 12/31/99 | $11.055 |
| 12/31/98 | $10.020 |
| 12/31/97 | $8.922 |
| 12/31/96 | $7.654 |
| 12/31/94 | $5.385 |
| 12/31/90 | 3.9935 |
The aggregate value of the State of Michigan Retirement System (SMRS) portfolio of investments continued its escalation to a new high of 10.836 billion as of September 30, 2006. This was an increase of $137 million from the previous month. The market value of the four state employee retirement funds that are pooled for investment by the State Treasurer who manages SMRS, also of course, reached record highs on that date.
With its responsible and prudent investments SMRS has done extremely well. The assets under its management rose 199,000 million in market value between March 31, 2006 and September 30, 2006.
| Market Value (in millions) |
% | |
| Public School Employees | $42.573 | 77.7% |
| State Employees | 10.699 | 19.5% |
| State Police | 1.185 | 2.2% |
| Judges | .302 | -0.06% |
| $54.759 | 100% |
The Michigan office of Retirement Services oversees the four defined benefit retirement plans identified above. As mentioned in previous issues of the Seranade we called attention to other state pension plans that are or appear to be in “jeopardy of defaulting.” It appears the Michigan State plans operate under a strong pension system resulting in lower monthly premiums and include lower costs on vision and dental coverage.
We are told that State and local government pension plans do not have to report their numbers to any single actuarial methodology as companies do. Therefore, many pension funds have not received the kind of scrutiny forced on corporations. The city of New York as an example has recently realized their annual reports have been flawed indicating their pension plans are presently under funded and the future findings will possibly reflect an even greater shortfall. A possibility exists the public trust in New York may be breached. Stay posted.
Observations, Facts and Assumptions
The headline stood out: Bill offers early out for state workers. It was early June, 2006 and many state employees were looking for this type of information. Workers would be able to retire if their age and years of service added up to at least 80. Pensions would be based on their salary, years of service and a factor of 1.75 percent, up from the normal factor of 1.5 percent. The early retirement period would begin January 1, 2007. Gubernatorial candidate Dick DeVos also indicated a desire to offer state government employees an early retirement option if elected. The issue was included in his 65 page jobs plan for Michigan. His idea was to reorganize and reduce the size of state government. He said “He believes the state’s workforce can be reduced by eliminating waste and finding more efficient ways to deliver services.” About 8,000 workers left state service when a plan in 2002 went into effect resulted in a disruption of many state services. It is estimated by the state of New York that an early out would cost approximately 13 million dollars a year. Governor Jennifer Granholm has taken a negative approach to an early retirement and is opposed to the idea at this time.
As an “old” state retiree I’m always amused at the thoughts and promises of those politicians running for government offices who think changing a system may be workable and could save the state many dollars. Perhaps they could be correct in their assumptions. Perhaps not. The following is an interesting piece of writing that has followed mankind for many years. It is recommended the reader scrutinize the piece at least twice in order to fully understand the true meaning.
“We train hard...but every time we were beginning for form up teams, we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing...and what a wonderful method it can be for creating the illusion of progress while producing inefficiency and demoralization.”
Petronius (A.D. 66)
Did You Know
- Squirrels keep warm in the winter by having several squirrels in the same nest.
- The size of a squirrel’s brain is about the same size of an average walnut.
- A hypocrite is the kind of politician who would cut down a redwood tree then would mount the stump and make a speech for conservation.
- It is horrifying that we have to fight our own government to save the environment.
Ponder This
- Question — what do you get when you cross a four leaf clover and poison ivy? Answer — a rash of good luck.
- Retirement means no pressure, no stress, no heartache — unless you play golf.
- When you work for God, the pay is very little, but the retirement benefits are out of this world.
- I was thinking of how people seem to read the Bible a whole lot more as they get older. Then it dawned on me; they are cramming for the finals.
Editor’s note: Al Trierweiter is a former President of the Lansing SERA Chapter, former Chairman of the Michigan SERA Coordinating Council, former Legislative Representative for both the Lansing Chapter and the SERA Council. AI may be reached at 6440 Old River Trail, Lansing 48917; phone 321-0041.
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