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Market Impacts on ASRS

With recent significant losses to financial markets attributed largely to uncertainty over the spread of the coronavirus, ASRS members may be concerned about the impact to the ASRS benefit plan.

The ASRS manages a diversified investment portfolio which is comprised of equities, real estate, credit, and bonds. Unlike personal retirement accounts, such as a 401(k), ASRS retirement benefits are set by a formula and not by the ups and downs in the investment market.

Here’s a summary of market impacts to ASRS members:

ACTIVE MEMBERS: 

Your ASRS future benefit is not dependent on investment performance. It is determined by a formula comprised of the years of service you accumulate, and your average ending salary.

Future contribution rates, which are paid equally by active members and their employers, are impacted by the total return on the ASRS fund as determined at the fiscal year end, which is June 30th.

Contribution rates are in place through June 30, 2021. 

RETIRED MEMBERS:

Retirees receiving monthly benefit from the ASRS are not impacted by the ups and downs of the markets. Benefits are fixed and cannot be reduced. The ASRS takes a long-term approach to investments and has weathered market fluctuations over time. 

For more information on ASRS investment strategies and market impacts on the ASRS visit our Investment page.

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