The head of the State Investment Board said the recent crisis on Wall Street has meant losses to the state pension fund.
But SIB Executive Director Joe Dear told The Olympian Oct. 13 that there is still enough money to pay benefits.
The plunge in stock prices has meant $177 million in losses in the past month. But that represents only about 0.2 percent of the $78 billion in the state pension fund.
So, the state pension fund is still healthy, Dear said.
“The difference between the contributions that come in, between government employers and employees, and what goes out in benefits is really close to even,” he said.
“The interest income from our fixed-interest investments and income-producing investments like real estate is more than ample to assure our ability to pay benefits.”
October 21, 2008
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In these tough economic times, it's unconscionable that the union refuses to tighten its belt. I am a member of Local 313 in Vancouver. The officers of the local bristle with anger whenever any suggestion is made that, say, the local curtail its spending on travel.
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