State Employees’ Retirement Fund Market Value Altimeter
August 2007
| Valuation Date |
Market Value (in billions) |
| 6/30/07 | $11.697 |
| 5/31/07 | $11.699 |
| 3/31/07 | $11.392 |
| 2/28/07 | $11.304 |
| 1/31/07 | $11.369 |
| 12/31/06 | $11.311 |
| 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 |
After months of increasing its bottom line the State Employee Retirement Investment Portfolio showed a slight decrease in the period between May 31, 2007 and June 30, 2007. The fund slipped a “mere” 2 million dollars during this time reflecting a balance of 11.967 billion. We choose to call those investing our funds as experienced investment professionals. It appears that these present responsible analysis’s are continually following a cautious approach on long-term growth and continue to preserve adequate capital funds during market down turns. Proper results can only be accomplished through fundamental research, careful selection and broad diversification.
The market value in billions of the individual four investment funds as of June 30, 2007 is as follow:
| Market Value | % | |
| Public School Employees | $48.266 | 78.0% |
| State Employee | 11.967 | 19.3% |
| State Police | 1.327 | 2.2% |
| Judges | .333 | 0.5% |
| $61.893 | 100.0% |
Observations, Facts and Assumptions
Much can be said in regard to recent stock market shenanigans and we will touch on the matter in the next issue of this publication. In the mean time our investments show an 8% return. Because our health benefits are not prefunded as are our pensions, major funding concerns are brewing at this time. Since there are no health care funded benefits to invest our health care is paid on an as-you-go basis. At the present time there appears to be adequate reserves to pay for what is needed. Some of the proposed solutions to the health benefit funding short fall have been to switch to a system that limits the long term financial commitment to retirees. That’s not a solution it’s a travesty. Other legislative or administrative solutions have focused on shifting some of the high costs of health care from the employer to the retiree (here we go again) such as increasing co-payments and disabilities.
Did You Know
- The average life-span of a $1.00 bill is about 22 months.
- Every 5 miles per hour you drive over 60 mph is like paying about 20 cents more per gallon.
- If you were a devout Muslim, you can’t invest in a company that produces alcohol or pork.
- The U.S. has more coal than Saudi Arabia has oil.
- Because of the cumulative effects of inflation something that cost $1.00 in 1982 would cost $2.15 in 2007. This writer retired January 29, 1982.
Ponder This
- Question: When is a retiree bedtime?
Answer: Three hours after he/she falls asleep on the couch. - Question: Among retirees what is considered formal attire?
Answer: Tied shoes. - Newspaper ad: Nice parachute for sale — never opened — used once.
- Newspaper ad: Free puppies — ½ cocker spaniel, ½ sneaky neighbor’s dog.
- You are stuck with your debt if you can’t budge it.
- When fish are in schools they sometimes take debate.
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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