These investment gains are among the best in the country
The TRS fund may be in a stronger fund than just about any other fund in the country
The gains have still not made the pension fund actuarially sound
The Texas Legislature must find a way to make the system more actuarially sound.
Some Not So Good News
The TRTA site also reported that the New York Times
was reporting that the TRS fund had 14 million shares invested in BP. Of course as most of you are probably well aware these are not exactly happy times for BP and their stock shares have taken a corresponding hit. The good news within the bad news was that supposedly this represented only one tenth of one percent of the TRS fund. One more reason to hope the oil leak in the Gulf is soon just a distant memory.Other State Pension Funds
A USA Today
article reports that, according to a study By the Manhattan Institute
the pension funds of the 50 states are underfunded by $950 billion. The report says the average state teacher funds are funded only at about 54 %. More good news;TRS is doing much better than the average. Still, you may be sure that these funding concerns will be used by those who are opposed to any cost of living adjustment. Another interesting ( or maybe disturbing) part of the USA article was that the study proposed converting state pension funds from a defined benefits plan as now constituted, that is pensions are based on number of years of service and salary and member the contributions are invested by a state pension fund, to a defined contribution system, much like 403 B’s in which each teacher would be responsible for investing their own money and their retirement would be based on the outcome of their investments. . The Texas Retired Teachers Association has been vehemently opposed to changing to a defined contribution system .So DEAR HEARTS AND GENTLE I would be “pleased as punch” if you would leave your always thoughtful comments.
Are you worried about TRS investments or do you have trust?
What do you think of the BP investments?
Do you think moving to a defined contribution system from our current system would be wise?
I look forward to your comments.
5 comments:
Good news and bad news to report? Overall it sounds positive but I still don't know which is the best approach to decide when is the best time to retire. Any suggestions?
TRS invested well when they bought BP. The stock is greatly undervalued and we would do well to buy more. If BP continues to honor their obligations to the people and animals of the Gulf, they will once again be strong. We all need to support Obama and his team as they expect BP to do everything possible to end this horrific disaster.
Jan, Thanks for dropping in on my blog. Though the jury is out, I do believe that right now the investment in BP could work out. Of course when TRS made the investment they had no way of knowing that this accident would happen. perhaps this is an example of what has been called a "Black Swan". Again thanks for reading my blog and I hope you'll comment again.
Richard
Debbie,
Thanks for your comment. You ask a very good question. I may do a future blog on "when do we know when to retire?" Quick thoughts include
1. What is the stress level on your job right now.
2. Are you financially' in shape' for retirement?
3. Have you thought of what you would like to do on your retirement? Richard
Complex Post. This post helped me in my university assignment. Thanks Alot
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