Public Safety Pension Is Missing $97 Million

PSPRS apparently misplaced $97 million in 23 days

The Arizona Public Safety Personnel Retirement System pension (PSPRS) operates on a fiscal year that ended on June 30, 2014.  This generally means that a final accounting is made of the fiscal year’s transactions and the pension’s financial performance.

Something happened to affect PSPRS’ investment performance after the end of its fiscal year, between August 4 and August 27.

PSPRS told the Arizona Republic on August 4, 2014, that it was expecting a 15% return on its investments (before expenses).

Arizona’s other statewide retirement program, the Public Safety Personnel Retirement System, had a projected gross investment return of roughly 15 percent, but the system cannot provide a net figure until this fall. That system runs three programs under PSPRS, for police officers and firefighters, elected officials and correctional officers.

 

On August 27th, Chief Investment Officer Ryan Parham and his staff reported to the Board of Trustees a fiscal year investment performance of 13.82% (before expenses).

What happened to the missing 1.2%?

A very rough approximation of 1.2% of $ 8.1 billion equals $97 million (an underestimate).

What happened to $97 million in 23 days?

MORE: Complete coverage of pension system

 

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