ATRS Investments for Fiscal Year 2022

A recent newspaper headline stated that ATRS investments had dropped by $1.4 billion. As with all headlines containing "numbers", an explanation is needed. It is true that the ATRS assets saw a $1.4 billion decline for the fiscal year ending June 30, 2022. However, half of that decline was due to the normal expenses associated with making retiree pension payments. The other half was due to a loss of investment value. The investment loss amounted to -3.9%. This negative return follows a year in which ATRS had a 32% GAIN in investment assets. Anytime there is record gain in one year, it is expected to see a lower gain or even a loss in the following year. In fact, the ATRS return ranked in the top 21 percentile of other public pension systems of similar size. This high ranking is due to the long-range investment strategy with a highly diversified portfolio. I would like to point out that the typical 401K fund (60% stocks/40% bonds) experienced a -12% loss for the same time period.

The primary investment return monitored by ATRS is the 4-year smoothing average used by the actuaries. That return is currently 8%, which exceeds our expected rate of return of 7.25%.

I want to emphasize that all ATRS members' 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 pensions. The ATRS Board makes decisions in terms of decades, not days, weeks, or months.

Annual Statements

If you are an active or inactive, vested member of ATRS, your Annual Statement for 2021-22 should be arriving in your mailbox shortly. This will reflect your account as of June 30, 2022. I encourage you to review all of your information.

ATRS MEMBER ID: To help protect your sensitive information, we now have assigned each member an ATRS Member ID. Please take note of your ATRS ID. We highly recommend using your ATRS Member ID when communicating with ATRS.

PERSONAL/BENEFICIARY INFORMATION: If you need to update any personal information, such as an address or beneficiary, you may contact our office and we can provide you with the required form(s). The completed forms may be submitted via fax to 501-682-2359 or emailed as a PDF to info@artrs.gov. They may also be mailed to ATRS, 1400 W. Third St., Little Rock, AR 72201.

Addresses may now be updated in your Member Portal!

After logging in, click on Member Portal>Member Data>Change Address. After entering your new address, be sure to check the “I Agree” box and click Submit Request.

POSITION: If your Position is incorrect, please contact your school district and have them complete and submit a new Membership Information Sheet in the Employer Portal, indicating your correct position.

SALARY/SERVICE: If there is a discrepancy in your salary or service credit that has been reported by the school, please contact your school district and have them complete and submit a Salary Statement for Service Form (https://www.artrs.gov/Forms/new/Form_210-G2-Salary-Statement.pdf) for the year(s) in question along with a copy of a concise check history.

Retiree Insurance Choice

As a reminder, the time is approaching for many of our ATRS retirees to make a decision about their state sponsored health insurance coverage. If you are an ATRS retiree that is Medicare eligible (generally age 65 or older) and an active member of the current ARBenefits Plan, you are eligible for the new ARBenefits Group Medicare Advantage (PPO) plan, which is a UnitedHealthcare Group Medicare Advantage (PPO) plan. You do not need to take any action to participate in this new plan, you will automatically be enrolled. If you do not wish to be enrolled in this plan, the opt-out process must be competed between November 1, 2022 and November 30, 2022.

The following link provides some general information including the contact information for AR Benefits.

https://www.transform.ar.gov/employee-benefits/retirees/medicare-advantage/

This link is the actual State & Public-School Retiree Opt-Out Form for ARBenefits Group Medicare Advantage (PPO) Plan.

https://www.transform.ar.gov/wp-content/uploads/ARBenefits-MAPD-Opt-Out_Final_UHC_20220930.pdf

Counselors are available by phone, email, in-office visit (appointment recommended) and virtual meeting via Zoom. Members may call 501-682-1517 or email info@artrs.gov for assistance.

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 26,900 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 during retirement season and other times when information needs to be shared. Now, over 32,000 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