August, 2011 Message to the DERP Membership
In light of the recent stock market volatility and declineYOUR DERP RETIREMENT BENEFIT REMAINS SAFE AND SECURE
- The recent stock market fluctuations won't impact DERP's ability to continue to pay benefits now or in the future. Your lifetime benefit is calculated and paid to you for the rest of your lifetime, based solely upon your years-of-service to the City and average monthly salary at the time of your retirement. Legally, your pension benefit cannot be reduced. It is the Plan’s responsibility to acquire and maintain the funds needed to pay your benefit, ultimately with the taxing power of the City behind us.
- While DERP has exposure to the U.S. and international stock markets, we also invest in many other asset classes, including bonds, which have protected value during the recent stock market declines. The Plan is very well diversified.
- Our independent Actuary’s valuation of DERP’s assets and liabilities, conducted earlier this year, concluded that DERP is 85% funded. This places DERP, in terms of funded strength, near the top of our peers of other public pension funds around the country.
