Jeff Kempker, CEBS, CRC
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Arguably the most important document we produce at LAGERS is the comprehensive annual financial report (CAFR). This document is not only required by law, but it serves to give an update on the financial status of the LAGERS trust fund. Just about anything you would want to know about LAGERS can be found in the CAFR. The problem is, it isn’t especially entertaining to read. So, for those who like the Cliffs Notes, here are the highlights from the 2017 annual report.
DOWNLOAD THE ENTIRE ANNUAL FINANCIAL REPORT HERE.
LAGERS is 94.8% Pre-Funded
As of February 28, 2017, LAGERS held $6.7 billion in assets with $7.1 billion in liabilities, leaving an unfunded liability of $371 million. Dividing the assets by the liabilities gives LAGERS a pre-funded ratio of 94.8%. This is really good, by the way. While our goal is to be 100% funded, an 80% funded rate is generally considered to be financially healthy.
LAGERS 1-Year Investment Return was 12.0%
LAGERS assumes an annual investment return of 7.25%, so any time we beat that, people are happy. However, we are long-term investors, so while the one-year number is important, long-term performance is the focus of our investment strategy. LAGERS five year return was 9.3%.
1,817 Members Entered Retirement
A record number of members retired as the Baby Boomers continue to move out of the workforce. LAGERS is now paying almost 22,000 retirees and beneficiaries every month. Total annual benefit payments surpassed $251 million. There are 33,633 active members participating in LAGERS.
12 Local Governments Joined LAGERS
LAGERS continues to grow as agencies across the state recognize LAGERS as a tool to attract and retain good workers to serve the taxpayers. LAGERS now serves over 700 local government employers.
LAGERS Recognized for Financial Reporting, Funding
LAGERS again received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association and the Recognition Award for Funding from the Public Pension Coordinating Council.
Jeff Kempker is the Assistant Executive Director, Member Services at LAGERS.
