With the bad news in the economy, state employees and retirees are concerned about the effect the economic downturn will have on their retirement.
“Unfortunately, talk radio hosts, hoping to spark interest in their programs, are using fear tactics that needlessly frighten retirees,” said OPEA Policy and Research Director Trish Frazier.
OPEA talked with the Executive Director of the Oklahoma Public Employees Retirement System, Tom Spencer, to learn how the OPERS system is weathering the storm.
“The bad news is the market is down and that is not good for the system,” said Spencer. “The good news is that, as participants in the system, you have a right to a pension benefit that stays the same no matter what happens with the market.”
“OPERS uses a long-term, conservative investment strategy,” he continued. “Your dollars are invested in a diversified portfolio. We continue our investment strategy and don’t get hung up over problems in the market.”
Spencer also added in his years of working for Oklahoma’s pension systems, he has seen several economic downturns including those in the '80s, and following 9/11.
For those who have SoonerSave accounts, Spencer advised not reacting too quickly to the losses in your plan.
“If you sell when the market is down, you are realizing the losses,” said Spencer. “You should choose a diversified asset allocation and stick with it. As you get close to retirement, you may want to move to more conservative investments.”
“OPEA is committed to preserving the OPERS as a defined benefit system,” said OPEA Executive Director Sterling Zearley. “With so many participants from state and county government, OPERS has the opportunity to make strong, long-term investments that assure a basic benefit for retirees across the state.”