THE INVESTMENT SCARE
In an effort to make their assets grow, Louisiana’s retirement systems invest their holdings. As such, there is a certain amount of risk. For the state employees’ and teachers’ systems, no investment gains have occurred since 2007. Only net investment losses have been recorded, which in turn adds to the overall UAL balance.
For further insight, consider the following articles:
— Legislative Actuary Paul Richmond quite bluntly told THE ADVOCATE earlier this month that Louisiana’s retirement systems are losing on their investments and “not coming close to the 8.25 percent benchmark” that has been established in recent years. “The downturn in the market certainly hurt things. That was the recent phenomena,” Richmond said.
— Steven Stockstill, the executive director of the firefighters’ pension fund, tells THE WALL STREET JOURNAL that his system — for the first time — is preparing for the possibility of a shortfall in its investments with Fletcher Asset Management, which had offered it a 12 percent minimum annual return.He said his main concern is “that the Louisiana fund still hasn’t received audited 2009 and 2010 financial statements from the Fletcher fund holding its investment.” THE WALL STREET JOURNAL also reported that Legislative Auditor Daryl Purpera says “he is planning to release a report (possibly this month) examining the investment practices and procedures of some public pension systems in the state.”