As always, I hope this update finds all of our ATRS members and their families safe and healthy during the current public health crisis. I hope all of you and your families have a happy and safe holiday season this year. I look forward to being able to travel the state and visit with you in person soon.
Due to COVID-19, the ATRS office remains closed to the public until further notice. However, you may visit the ATRS building lobby to drop-off paperwork. The health and well-being of our members and employees is of the utmost importance. Therefore, we ask that you continue to call or email the ATRS counselors to schedule telephone sessions.
ATRS Funding Status
The system actuaries have completed the valuation for the fiscal year that ended June 30, 2020. While ATRS experienced a negative one-percent (-1%) rate of investment return this past fiscal year, ATRS has an 80.6% funding level. This significantly beats the nation-wide average for public pension systems which is around a 70% funding level. The amortization period in order to pay down the system’s unfunded liabilities is 27 years. This is a slight improvement over last year’s 28 year amortization period.
The good news is that we have seen steady market gains as the COVID-19 vaccinations are being approved and delivered. As of today, the market value of ATRS assets is approximately $18.9 billion. ATRS assets have gained over $2 billion since July 1st. This represents a 14.5% improvement so far this fiscal year. The primary mission of ATRS is to remain actuarially sound and pay member benefits by investing ATRS assets in a manner to earn the 7.5% actuarial assumed rate of return over a long-term horizon. ATRS is a long-term investor and the ATRS Board has structured a well-diversified investment portfolio with the ability to withstand market volatility. The ATRS Board remains committed to managing the System’s assets in a prudent manner that will ensure the viability of your pension. The ATRS Board makes decisions in terms of decades, not days, weeks, or months.
2021 Legislative Session
On Monday, January 11, 2021, the 93rd General Assembly of Arkansas will begin the Regular Session for 2021. In a general session, laws affecting any and all issues can be introduced as compared to the fiscal session in even numbered years that is essentially limited to fiscal issues and appropriations.
I want to thank all the ATRS members and supporters that showed up to the joint retirement committee meetings back in 2019. This year, due to the COVID-19 pandemic, it is likely that there will be limited access for the public to attend the legislative committee meetings in-person. The exact protocols for public access to legislative committee meetings have not been established. I will keep you informed as the session draws near.
ATRS will file several bills this year to provide for technical changes and some minor adjustments to our system for better administrative and improved fairness for ATRS members. For more information regarding the ATRS Bill Package and bills that may impact ATRS visit the Legislation page on our website.
Board of Trustees Elections
I would also like to remind everyone that ATRS is conducting an election to fill five positions on the Board of Trustees that expire June 30, 2021.
The election of the following five (5) positions on the ATRS Board of Trustees is scheduled in March, 2021:
- Position No. 2 (Certified Member Trustee - 2nd Congressional District, Requires State Licensure),
- Position No. 5 (Administrator Trustee - Requires Administrator’s License and Superintendent Position),
- Position No. 6 (Administrator Trustee - Requires Administrator’s License),
- Position No. 7 (Non Certified Trustee - Non State Licensure); and
- Position No. 8 (Minority Trustee)
See the Board of Trustees Election page on the ATRS website for more details.
Stay in Touch with ATRS and View YOUR Account Information
The ATRS website allows members to have direct access to specific member account information. Now, approximately 23,300 members have direct account access to individualized account information. Here is the link to the instructions to sign up: www.artrs.gov/registration.
You can also sign up to obtain these executive director updates through your private email address. Updates are made throughout the year such as at retirement season and other times when information needs to be shared. Now, over 25,400 people have signed up to receive this executive director update by direct email delivery. It is always a great pleasure for ATRS staff to learn of more ways to provide information to ATRS members, employers, beneficiaries, government officials, and the public. The ATRS Board is committed to providing a system that is member friendly and transparent. Remember that ATRS is here to serve you.
Best regards,
Clint Rhoden
Executive Director ATRS
Office: (501) 588-4367
Mobile: (501) 291-1623
clintr@artrs.gov