State Employees’ Retirement Fund Market Value Altimeter
March 2007
| Valuation Date |
Market Value (in billions) |
| 1/31/07 | $11.369 |
| 12/31/06 | $11.311 |
| 11/30/06 | $11.194 |
| 9/30/06 | $10.836 |
| 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 State Employee Retirement Investment portfolio increased another 58 million between December 31, 2006 and January 31, 2007 reflecting a bottom line of $11,369 billion. The Bureau of Investment continues its responsibilities relative to maintain by tis actions, integrity to the fund. Its goals include: Maintain sufficient liquidity to pay benefits and achieve optimal rate of return possible with prudent levels of risk. Also, the retirement objectives set forth our objectives: Diversify assets to preserve capital and avoid large losses. Perform in the top half of the public plan universe over the long term. Exceed individual asset class benchmarks over the long term and operate in a cost-effective manner relative to peers.
Change of personnel: Vernon L. Johnson, Administrator of the Bureau of Investments Trust Accounting Division, has been temporarily appointed Chief Operating Office for the Bureau succeeding Mark P. Hass. Mr. Hass has been elevated to Chief Deputy to State Treasurer, Robert J. Kleine. Our congratulations to Mark.
The total number of retirees listed as of January 31, 2007 was 45,778 reflecting an average retirement age of 58.75. There were 153 retirees added to the payroll in January.
Observations, Facts and Assumptions
It must be a difficult task these days to live by the actions of the stock market. The Dow Jones Industrial average, an index of 30 large publicly traded companies, closed on Tuesday, February 28 at 416.02 points down to 12,216.24 the worst trading day since 9/11 when terrorists attacked New York City. Several reasons were voiced concerning the matter. The day before the downage Alan Greenspan, the former Federal Reserve Chairman, stated the “United States might be heading for a recession.” We understand the national debt presently is 8.7 trillion and Uncle Sam is reported spending almost four times as much on paying interest on borrowed money as on education, transportation and times as much on paying interest on borrowed money as on education, transportation and NASA combined. The present Federal Reserve Chairman, Ben Bernanke, has stated that we are in the “the calm before the storm.” He thinks a national disaster could develop particularly regarding the growth of spending in the entitlement programs. This problem could possibly affect all present and future retirees. Taxes are continually being cut from Washington and at the same time spending priorities appear out of whack. Many believe the main reason for the Dow drop was the action of China. There was a large sell off in that country when stocks dropped 9%. Apparently we have a line of credit with China that will not quit. Our obligation to that national in the form of U.S. government bonds is presently 330 billion that gives an appearance we are nearing the point of being held hostage by them. I wonder if Lansing Community College teaches Chinese? Positively speaking some economists have indicated the action of Dow could be healthy and is letting off steam. Others would choose to think the matter was a form of correction. Some say no to this assumption because a 10% drop did not develop. Finally a local respected financial planner said the sell off could be good of investors who could now buy more shares for their money. It was suggested to “Buy and hold.” Time will tell.
Did You Know
- There are 193 countries in the world.
- In the Iraq region there are but two democracies: Turkey and Israel. The earth travels around the sun once a year.
- Early fall is a god time to start feeding birds so they know your intentions as they begin to establish feeding territories.
- The Calumet mines (Calumet, MI) were memorialized by Woody Guthrie in his song “The 1913 Massacre.” The song was in reference to a stampede in a local hall resulting in the deaths of 73 persons. The hall held 500. Because of the tragedy a Constitutional Amendment was enacted negating the shouting of “fire” in a crowded theater.
Ponder This
- Subject — a Retiree...Question — How many days in a week? Answer — 6 Saturdays and 1 Sunday.
- Questions — What is considered formal attire? Answer — tied shoes.
- If you could shrink the earth’s population to a village of precisely 1- people, with all the existing human ratios remaining the same, it would look something like the following: There would be 57 Asians, 21 Europeans, 14 from the Western Hemisphere (both North and South), and 8 Africans. Fifty-two would be female, 48 would be male. Seventy would be non-Christian, 30 would be Christian. Eighty-nine would be heterosexual, eleven would be homosexual. Six people would possess 59% of all the world’s material wealth and all six would be from the United States. Eighty-nine would live in substandard housing. Seventy would be unable to read. Fifty would suffer from malnutrition. One would be near death and one would be near birth. One would have a college education and one would own a computer.
- When one considers our world from such a compressed perspective, the need for acceptance, understanding and education become glaringly apparent.
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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