Returns on state retirement accounts rebound from loss last year
Alaska's pension accounts for teachers and other public employees are still suffering from years of underfunding but got a boost this year with investment earnings in the double digits, a marked improvement from losses the year before.
Bad advice from an actuarial firm led to years of underfunding the constitutionally protected pension funds, setting them back by billions of dollars. The state has been playing catch-up ever since and came close last year to issuing controversial bonds to close the gap, known as the "unfunded liability."
The pension funds — the Public Employees' Retirement System and Teachers' Retirement System — each earned more than 13 percent in returns in the fiscal year ending June 30, 2017, according to the Alaska Department of Revenue. The funds reported less than a percentage point of losses the previous year.
Jerry Burnett, deputy commissioner at the Department of Revenue, credited the comeback to strong performance in domestic and international stocks and private equity.
Read more: https://www.adn.com/politics/2017/09/15/returns-on-state-retirement-accounts-rebound-from-loss-last-year/