Census data shows loss in government retirement systems
State and local government retirement systems lost $178.8 billion in 2008, according to U.S. Census Bureau data. Most of the loss was seen in total securities, which comprise the largest component of holdings and assets.
The retirement systems held $3.2 trillion in holdings and assets during 2008, according to the Census Bureau’s “2008 State and Local Government Employee Retirement Systems Survey,” released on March 25. Total securities lost $228.4 billion in value, though that loss was offset by a $75.7 billion increase in other investments, such as real property and miscellaneous investments. Cash and short-term investments also lost $26 billion in value. During the year covered by the survey, 76.7 percent of the systems’ total securities were nongovernmental securities, such as corporate stocks, bonds and mortgages.
Retirement systems distributed their investments among a variety of governmental securities, nongovernmental securities and other assets. The largest category of investment holdings was corporate stocks, comprising 35.1 percent ($1.1 trillion). Another 16.3 percent ($519.7 billion) was invested in corporate bonds, and 14.7 percent ($468.1 billion) was invested in foreign and international securities. The remaining investments were made up of governmental securities, real property, mortgages, funds held in trust and other investments.
The state government employee retirement systems had 13.1 million active members, while the local government systems had 1.6 million active members. Total payments amounted to $193.8 billion in fiscal year 2008. Overall, 7.6 million people received $175.4 billion in benefit payments based on retirement, disability or rights of survivorship. Withdrawals — amounts paid out representing the contributions made by employees during their employment, plus any interest — amounted to $4.6 billion; other payments were $13.8 billion.
Download the 2008 State and Local Government Employee Retirement Systems Survey.
