JP Morgan’s SmartSpending Fund
The Alaska Treasury Division—working with Empower Retirement and the Division of Retirement and Benefits—is pleased to announce the addition of JP Morgan’s SmartSpending fund for members who are close to retiring or who have already retired.
SmartSpending is a mutual fund designed to help you spend down your money gradually during your retirement years, while also generating returns. The SmartSpending calculator provides a sample spenddown amount to help you decide what works for you.
Click the SmartSpending link on Empower’s website, akdrb.com , to learn more about this new tool to help you better manage your spending after retirement.
Self-Directed Brokerage Window for PERS and TRS Defined Contribution Members
The Division of Retirement and Benefits is pleased to announce we are in the final stages of implementing the Self-Directed Brokerage (SDB) window. This will allow members of the PERS and TRS Defined Contribution retirement plans to self-direct investments within the SDB window available on the Empower Retirement website at akdrb.com . Registration and the disclosure acknowledgement will be required to access the above referenced accounts and the SDB.
The SDB will be available soon to all active members and retirees of the PERS and TRS Defined Contribution retirement plans.
If you have questions or concerns with accessibility, please contact an Empower representative at (800) 232-0859.
Please note, members who have a General Delivery address will need to speak with an Empower representative for the initial akdrb.com account registration.
The PERS Fiscal Year 2021
The Division of Retirement and Benefits (Division) prepares a Annual Comprehensive Financial Report (ACFR) which is available online. The Teachers’ Retirement System (TRS) ACFR provides comprehensive financial, investment, actuarial, and statistical data.
The Division also posts the results of the annual actuarial valuation online. This report contains the funding status of the PERS, as well as the data, assumptions, and methods used to develop contribution rate recommendations. As of June 30, 2020, the date of the latest actuarial valuation, the Defined Benefit unfunded accrued liability was $4,613,007,000.
The PERS Defined Benefit plan (DB) includes a defined benefit pension plan and the Alaska Retiree Healthcare Plan. The PERS Defined Contribution Retirement plan (DCR) includes a defined contribution retirement plan, occupational death and disability plans for peace officers and firefighters, and for all other employees, a healthcare reimbursement arrangement and a retiree medical plan. A summary of the PERS Financial Statements as of June 30, 2021 is reported below.
Summary of Fiscal Year 2021
- There were 151 PERS employers.
- At June 30, 2020, there were 11,033 PERS DB Plan employees and 22,923 PERS DCR employees.
- PERS employers paid 22% of each employee’s gross salary in addition to the contributions paid by the covered employees. The State paid an additional $203,585,000 to meet the actuarially determined contribution rate of 30.85%.
- Based on the June 30, 2020 actuarial valuation, there were 37,106 people who received monthly PERS pension benefits, an increase of 2.2% over the prior year. PERS retirees and beneficiaries received an average annual pension benefit of $24,845.
Changes in PERS Assets During Fiscal Year 2021
| DB Plan | DCR Plan |
|---|
| Fiduciary Net Position at June 30, 2020 | $17,282,672,000 | $2,074,870,000 |
| Additions |
| Employer Contributions | $482,932,000 | $139,171,000 |
| Plan Member Contributions | $70,614,000 | $117,855,000 |
| State of Alaska Contributions | $101,383,000 | - |
| Net Investment Income | $5,088,502,000 | $660,335,000 |
| Other | $91,768,000 | $271,000 |
| Total Additions | $5,835,199,000 | $917,632,000 |
| Deductions |
| Pension Benefits Paid | $921,899,000 | $431,000 |
| Healthcare Benefits Paid | $462,977,000 | $521,000 |
| Member Refunds and Disbursements | $8,107,000 | $61,879,000 |
| Administrative Expenses | $28,438,000 | $5,243,000 |
| Total Deductions | $1,421,421,000 | $68,074,000 |
| Fiduciary Net Position on June 30, 2021 | $21,696,450,000 | $2,924,428,000 |
Statement of PERS Assets as of June 30, 2021
| DB Plan | DCR Plan |
|---|
| Assets |
| Short-Term Investments | $180,155,000 | $12,419,000 |
| Securities Lending Collateral | $55,277,000 | $2,382,000 |
| Empower Account | - | $776,000 |
| Other Receivables | $24,462,000 | $11,441,000 |
| Investments, at Fair Value | $21,537,472,000 | $2,900,440,000 |
| Other Assets | $984,000 | - |
| Total Assets | $21,798,350,000 | $2,927,458,000 |
| Liabilities |
| Securities Lending Collateral Payable | $55,277,000 | $2,382,000 |
| Accrued Expenses and Other Liabilities | $46,623,000 | $648,000 |
| Total Liabilities | $101,900,000 | $3,030,000 |
| Fiduciary Net Position on June 30, 2021 | $21,696,450,000 | $2,924,428,000 |
We Want To Hear Your Story!
We want to share your retirement story with your fellow members. Are you volunteering, traveling, involved in the community or just enjoying life? Let us know where you are living now, what you are involved in, where you were employed, and how your State of Alaska retirement has allowed you to enjoy new adventures in retirement.
You can also mail your stories and photos to:
Attention: Newsbreak Editor
State of Alaska Division of Retirement and Benefits
333 Willoughby Avenue
6th Floor
P.O. Box 110203
Juneau, AK 99811-0203.
Please keep your stories to 500 words or less.
