State Employees’ Retirement Fund Market Value Altimeter
June 2004
| Valuation Date |
Market Value (in billions) |
| 4/30/2004 | 9.371 |
| 3/21/2004 | 9.496 |
| 2/29/2004 | 9.520 |
| 1/31/2004 | 9.420 |
| 12/31/2003 | 9.369 |
| 11/30/2003 | 9.107 |
| 10/31/2003 | 9.073 |
| 9/30/2003 | 8.857 |
| 6/30/2003 | 8.707 |
| 3/31/2003 | 8.181 |
| 12/31/2002 | 8.537 |
| 12/31/2000 | 10.890 |
| 12/31/1995 | 6.595 |
| 12/31/1990 | 3.935 |
The market value of the State Employees Retirement Fund dropped 125 million between March 31 and April 30, 2004 showing a bottom line of 9.371 billion. This figure approximates that depicted at the end of year 2003. The market has a tendency to fluctuate quite a bit these days but also has demonstrated considerable resilience.
Observations, Facts and Assumptions
The matter of retiree pensions and benefits has been a very contentious issue lately. According to the state constitution pensions are guaranteed. Article IX, Section 24 of the Constitution says, “the accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof which shall not be diminished or impaired thereby.” This cordage appears to be self- explanatory. In other words a retirees pension benefit is guaranteed and cannot be reduced. An adjunct to this benefit was the issuance of so called 13th checks for several years. These checks were introduced so that retirees could keep up with the cost of living increases. Unfortunately, circa 1998, the State Employees Retirement Board used its administrative rule power to change the formula which calculated the checks. Subsequently, this change resulted in retirees receiving progressively less money to those receiving their 13th pay checks until a near full demise of the program.
The above information has been set forth so that “powers to be” are once again reminded that older state retirees in the past have in the vernacular “been given the shaft” at a time we would have been able to keep pate with the escalating cost of living. This notion is evident or calls to mind each time an early out is proposed. Since the year 1984 and subsequent early out programs younger retirees are leaving their state jobs with bundles of benefits. Talk about discrimination! Is class action eminent?
Did You Know
- Fifty-two percent of workers today choose to start collecting social security benefits at age 62.
- June 14 is recognized as Flag Day. (US Army founded 1775)
- Korean War began 1950.
- Your foot and your forearm (from your wrist to the inside of your elbow) are the same length.
Ponder This
“How to handle stress”
- Bill your doctor for the time you spent in his waiting room.
- Drive to work in reverse!
“The real meaning of the Fourth of July”
Have you ever wondered what happened to the fifty six men who signed the Declaration of Independence? Five signers were captured by the British as traitors and tortured before they died. Twelve had their homes ransacked and burned. Two lost their sons serving in the Revolutionary Army: another had two sons captured. Nine of the fifty six fought and died from wounds or hardships of the Revolutionary War. They signed and they pledged their lives, their fortunes, and their sacred honor.
What kind of men were they? Twenty-four were lawyers and jurists. Eleven were merchants, nine were farmers and large plantation owners; men of means, well educated, but they signed the Declaration of Independence knowing full well that the penalty would be death if they were captured.
So take a few minutes while enjoying our next soon to be Fourth of July holiday and silently thank these patriots. It’s not much to ask for the price they paid. Remember: freedom is never free! Its time we get the word out that patriotism is not a sin, and the Fourth of July has more to it than beer, picnics and baseball.
Commentary
A friend of mine and SERA’s dropped by my house recently stating he was presently running for Congress in the 7th Congressional District. It was Dr. Paul DeWeese past Representative from the 67th State House District. The 7th District presently includes the counties of Eaton, Branch, Jackson, Hillsdale, Lenawee and parts of Calhoun and Washtenaw counties. Dr. DeWeese instituted the first State Employee and Retiree Recognition Day in Michigan. SERA was much involved in the program. His office door was always open to our members. Just three weeks as a state representative upon our request Dr. DeWeese addressed our Council. Incidentally, certain factions under theCapitol Dome did not appreciate his initiative and he was told so accordingly. If these comments indicate to anyone a political leanings rest assured that if Ex-govemor Engler would appear at my door I would also “honor his presence” — gulp!
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.
Return to top of page