State Employees’ Retirement Fund Market Value Altimeter
September 2006
| Valuation Date |
Market Value (in billions) |
| 7/31/06 | $10.497 |
| 6/30/06 | $10.494 |
| 5/31/06 | $10.447 |
| 3/31/06 | $10.590 |
| 2/28/06 | $10.493 |
| 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 market value of the State Employees Retirement Fund increased 3 million between June 30 and July 31, 2006 showing the market value at 10.497 billion. Such an increase, through comparatively small, reflects good investing in a volatile market plus there are less individuals contributing to the fund.
The past few years the state pension fund has shown between 80% and 109% funded. These are manageable percentages. It’s a different temp in some other states. Some are striving to dig themselves out of seemingly impossible situations. Vermont, Illinois, Colorado and New Jersey have changed their pension plans out of necessity. The cities of San Diego and New York showed recent pension shortages in the billions. A byword that is reaching most states that if it “fails to meet the test of fiscal responsibility” eventually the truth will be known.
The State of Michigan Retirement Systems is the 13th largest public pension fund in the United States and the 19th largest pension fund n the country. Incidentally, it’s the 36th largest pension fund in the world.
This issue will be the final highlight of officials operation in the State of Michigan Retirement Systems: Milan J. Maat joined the Bureau of Investments in 1977 as Administrator of Short-Term Investments. He spends half of his time on common cash and other smaller areas of investment, with the remainder of his time allocated to to Retirement Systems. Currently, all of the money under his management is invested in prime commercial paper — the highest yielding available investments. He is also responsible for all applicable credit analysis.
Mr. Maat graduated from Calvin College in 1963 with a major in economics. He spent 14 years in commercial lending at banks — starting with Old Kent Bank in Grand Rapids as a commercial loan credit analyst and serving the last eight years of that period as Vice President in charge of the Commercial Loan Department at Bank of Lansing. He also chaired the bank’s loan committee and served as secretary of the Board of Directors Executive Committee.
Observations, Facts and Assumptions
Recently a bill was introduced setting forth an early out for state workers. Workers would be eligible to retire if their age and years of service add up to at least eighty. The pensions would be based on their salary, years of service and a factor of 1.75%, up from the normal factor of 1.5%. This is a controversial bill. One of the arguments is in the replacing of a seasoned worker with a younger person drawing less money. An interesting playout of this circumstance is in the possible hiring of the older retired worker on to his old job under the new rehiring plan started in 1997. In this scenario no hew hire is made.
The paper read, “if there’s one economic disease worse than recession, it’s inflation.” Mr. Ben Bernanke, the new Fed Chairman, appears to be on the hot seat. He recently increased interest rates to 5.25%, the seventeenth time since june 2004. The rate increase was an attempt to fend off inflation. Some of those in authority question whether we are bordering on recession because of the recent rate increase, together with the record oil prices and growing weakness in the housing and job markets. At times like these we are told, even the wise heads of the Fed live from one economic indicator to the next.
“Over the past year, energy prices have risen 23% due to increased global demand, limited domestic supplies, natural disasters and global instability.” John Engler, National Association of Manufactures, President and Chief Executive. Ex-Governor of the State of Michigan, etc.
Did You Know
- The bones of most birds are hollow — filled with air.
- Since the 1600s, at least 115 species of birds are known to have gone extinct; mostly as a result of human interference on one sort or another.
- Mosquitoes, like bears, hibernate through the winter cold.
- Adult mosquitoes look for dark, damp hiding places — like your basement.
- The average adult squirrel needs to eat about a pound of food a week to maintain an active lifestyle.
Ponder This
When a wife will wash her husband’s back
Then get a towel off the rack — that’s love!
And when at night he warms her feet,
Although he shudders when their meet — that’s love!
Or when she makes his favorite cake
Though the day is far too hot to bake — that’s love
But of all the signs depicting love,
There are few that can compete
With the man-of-the-house remembering to
Put down the toilet seat!
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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