Why SURS is Sustainable!
The rate of return for FY 2011 on SURS investments was 23.8 percent. SURS is a long-term investor and since 1986, the average annual rate of return was 8.8 percent. Do not get confused with the short-term returns when the long-term is what matters.
The numbers to focus on are the amounts SURS pays out in pensions and benefits in a year. During the last fiscal year, SURS paid out $1.6 billion in benefits, but collected $4.1 billion in revenue, more than enough to meet current obligations.
The total value of SURS assets continues to improve. At the end of FY 2009, SURS held $11.03 billion. At the end of FY 2010, SURS held $12.12 billion. As of 6/30/2011, SURS held $14.24 billion. That’s a 22.5 percent increase in two years.
It’s important to note that SURS and its investments and contributions from its membership will continue to accrue principal and interest over the remainder of a member’s life as long as unused equity exists.
As of 6/30/2011, SURS had total liabilities of $31.5 billion and an unfunded liability of $17.2 billion. While the media frets about the unfunded liability, the total amount is never due all at once. Don’t confuse the mortgage with the mortgage payment.
Contributions to SURS since 1996:
Since 1996 SURS has received $11.2 billion in employer/state/member contributions.
Investment income plus employer/state/member contributions has totaled $24.8 billion since 1996.
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