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Wednesday, June 12, 2024
HomeNewsLocal newsTrustees Want Clear Picture of GERS Finances

Trustees Want Clear Picture of GERS Finances

Trustee Nellon Bowry wants more clarity on GERS’ financial reports. (Source file photo)

The financial report at the Government Employees’ Retirement System Board of Trustees meetings used to be easy to follow. Every month, the system was paying out $10 to $20 million more in annuities in relation to what it was collecting from employee and employer contributions. And that drain on the system would be reflected in drawdowns from its investment portfolio.

Now, with the GERS Solvency Plan in effect, the numbers are more complicated.

Denise Jeremiah, assistant chief financial officer, reported Thursday to the trustees that the system in September collected $15 million less than it paid out, but for the year, it was showing $18 million to the positive.

Trustee Nellon Bowry said there was nothing technically wrong with the report, but he would like to see additional information. Trustee Andre’ T. Dorsey said he thought the request for more information had been made before.

Angel Dawson, the system’s new administrator, said he appreciated the discussion and that he would work with Jeremiah to address the trustees’ concerns.

Although the Solvency Plan is funneling money into the system, trustees have raised concerns about whether the payments will always be timely since the plan is based on the Rum Cover-Over Matching Fund and that fund is at the mercy of the U.S. Congress.

Dorsey also wanted more information after Investment Officer Glenville Henderson gave his report. Henderson said that the system’s investment portfolio has dropped in market value from $448 million to $413 million.

Dawson explained that $12 million of that was an “unrealized loss” because the stock had not been sold at the lower price. Another column in Henderson’s report noted a cash flow loss of $20 million.

Henderson pointed out that those figures only related to September. He said over the year, the portfolio had shown an 8 percent increase.

Trustees Dwane Callwood and Vincent Liger attended along with Bowry and Dorsey.  Trustee Ronald Russell was called away early in the meeting.

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