Investment Goals Outlined The investment goals of PERS are simple. We must have sufficient funds to meet all of our liabilities. These liabilities include monthly benefits for our recipients, refunds for members who leave public service, allowances for future payments to members who have not yet retired, and funding for retiree health care benefits. We also are committed to attaining full funding, earning sufficient investment return to improve benefits periodically, and keeping the System's costs reasonable for active members and their employers. In order to accomplish these goals, the Retirement Board has developed an investment policy based on long-term considerations.
Investment portfolios are instrinsically subject to financial and economic risks.
PERS' investment policy provides for appropriate diversification of investments and an acceptable expected return on investments after consideration of the risks involved. The System's investment portfolio is deliberately diversified and made up of a variety of financial assets, including domestic stocks, bonds, real estate, international stocks, and private equities. How funds are distributed in a portfolio, or asset allocation, is the key to this process. Studies show that 90 percent of a fund' s earnings are determined by its asset allocation, so this set of decisions is crucial. The Retirement Board recently decided to expand its focus to include improving benefits and keeping costs reasonable for employees and employers.