Today marks the end of fiscal year 2020-2021 with a record return on the ATRS investments! The estimated return on investments this year is 30%. This is the highest return seen in the 84 year history of ATRS. The current estimated value of ATRS assets is $21 billion.
As always, I hope this update finds all of our ATRS members and their families safe and healthy. The ATRS staff has returned to work on-site at the ATRS building. We are striving to have a safe work place as we adjust to more normal operations. Please call to schedule any in-person counseling sessions so that the counselors can plan for an efficient visit. You can also continue to schedule telephone or video counseling sessions. You may visit the ATRS building lobby anytime during business hours to drop-off paperwork.
In spite of the pandemic, ATRS did not see any significant increase in teacher retirements this year. For the fiscal year ending June 30, 2021 there has actually been a decrease in total retirees from prior years.
Here are the total retirees for the past 3 fiscal years:
July 1, 2018 through June 30, 2019 - 2,753
July 1, 2019 through June 30, 2020 - 2,672
July 1, 2020 through June 30, 2021 - 2,600
ATRS has just completed another retirement season preparing for our July 1 retirees and T-DROP participants. For the most part, the same number of retirees and T-DROP participants reached this mile-stone in their careers as last year.
ATRS Investments
The primary mission and focus of ATRS is to remain actuarially sound and pay life-time retirement benefits by investing ATRS assets in a manner to earn the 7.5% actuarial assumed rate of return over a long-term horizon. The current estimated rate of return for the ATRS fiscal year ending June 30, 2021 is 30%. This estimate will change as investment valuations are finalized. While this is an incredible return for the system, it is important to remember that it will be spread across four years during the calculation of the actuarial valuation. The four-year smoothing of this year’s great return will help offset the 5% and -1% returns ATRS experienced the two previous years.
While global stock markets continue to increase, it is possible that market volatility could continue. The ATRS investment portfolio also experienced recent increases and volatility with the global stock markets. However, it is important to note that the ATRS portfolio is well diversified across multiple asset classes and designed to weather stock market volatility. ATRS remains mindful of the volatility within the markets and is in communication with various market participants to evaluate developments.
I want to emphasize to all our members that your ATRS benefits are secure. ATRS is a long-term investor and the ATRS Board has structured a diversified investment portfolio. 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.
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 25,300 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 27,100 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