[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6359216,"mediaKeyId","2192542-94783fdcc141325bc572cc43f7e378b7","parentId",2192542,"title","State retirement systems $31 billion in assets; officials say asset mix and liquidity increased to meet $1.5 billion annual payouts","audioSeconds",941,"startMs",2984000,"endMs",3925000,"viewUrl","/Search/View?dp=1&key=2192542-94783fdcc141325bc572cc43f7e378b7&start=2984&end=3925","thumbnailUrl","https://assets.pipeline.soar.com/2192542-94783fdcc141325bc572cc43f7e378b7/thumbnail_2984000.jpg","articleUrl","/articles/6359216/Alaska/State-retirement-systems-31-billion-in-assets-officials-say-asset-mix-and-liquidity-increased-to-meet-15-billion-annual-payouts","mediaUrl","https://secure.pipeline.soar.com/6359216-a1d2a5ac8f630e142d1f4fbeadd56dea/orig.mp4?Expires=1773577569&Signature=oH6cNBlK4KtEzlDWPzKKno4rebgLD9KvGba5aF33~rh4D-QXJRLZwKqM6LzZPW5CnmCJKsvg7uan6CrFtBx3cAuBwU7PvPDgJF3YPQUDo2YZRKRWNLRiaHHLWGZSMV3hWyZAWP7qTckT~JsqJQtX2ZY3YXcc97n7dCBOV06MEv2sW8SSSO6zMIU3TZeqssKlhab~l1oKs6q5Z0hXy5IbYj0TlW3FBGNEg2gXcQQiJCYd0d55zGyEqJt4LEa9bOXliUIJK3cEVtX-7dBw-0b4VMPgqAtRaU2yiPmnXTb5s0SY~iI-QY8z5Ft47IT~kndHjfM3LfoVeWjtRKJLtAcXMQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Alaska State Legislature","date","2025-01-31T00:00:00Z","article","Juneau — Department of Revenue and Alaska Retirement Management Board staff told the House Finance Committee on Jan. 31 that the combined defined benefit retirement systems held about $31 billion at June 30, 2024, and that fiscal year 2024 recorded approximately $1.5 billion in net withdrawals (benefit payments exceeding new contributions).

Chief Investment Officer Zach Hanna and Treasury staff described adjustments to the retirement systems’ asset allocations to ensure benefit payments are available when due. “We certainly do need a higher proportion of liquid assets than you would need if you didn't have that cash outflow profile,” Hanna told lawmakers while describing changes in fixed‑income allocations.

Why it matters: Defined benefit plans carry hard‑dollar payout obligations to retirees; those payments do not adjust in proportion to asset values. Large or sustained market downdrafts could increase unfunded liabilities and would require policy responses, including higher employer contributions or other remedies.

Key details
- System size and outflows: PERS and TERS combined were reported at around $31 billion with net withdrawals of roughly $1.5 billion for fiscal 2024 (the staff described those withdrawals as a recurring feature of closed defined‑benefit systems).
- Asset allocation changes: Hanna said allocations have shifted toward more fixed income in recent asset allocations — from about 19% two years ago to about 23% last year — explicitly to meet liquidity needs while taking advantage of higher rates.
- Current mix: Staff reported a long‑horizon asset allocation of roughly 43% public equities, 23% fixed income and 34% alternatives (private equity, private debt, real assets).
- Expected long‑term returns and liabilities: Treasury cited a 10‑year return of approximately 7.9% (10‑year periodic calculation) and noted the actuarial assumed rate of return is 7.25%; staff said excess returns added value to the systems over the past decade but warned that prolonged poor markets would enlarge unfunded liabilities.

Committee concerns and modeling
Lawmakers asked how many years of flat or poor returns the systems could withstand before the state would need to backfill liabilities. Hanna said modeling indicates the current liquidity posture is likely sufficient for multi‑year scenarios typical in actuarial stress testing but acknowledged that a significantly deeper or longer market decline would require state decisions on funding and amortization schedules.

Quotes from staff
- Zach Hanna: “We certainly do need a higher proportion of liquid assets than you would need, if you didn't have that cash outflow profile.”

Bottom line
Treasury and ARM Board staff told the committee they have increased fixed‑income allocations and modeled stress scenarios to preserve liquidity for benefit payments. Officials said current positioning is intended to meet near‑term payout obligations while preserving long‑term return objectives, and they committed to provide additional modeling details to the committee on prolonged low‑return scenarios.","mediaType","Video","parentTitle","House Finance Committee - January 31, 2025","oneSentenceSummary","Department of Revenue and ARM Board staff told the House Finance Committee that the combined PERS and TERS systems stood at about $31 billion at June 30, 2024, that net withdrawals were roughly $1.5 billion in FY24, and that Treasury has increased fixed‑income allocations to support liquidity needs.","taxTitle","2025 Legislature Alaska, Alaska","taxId",78559,"location","Alaska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6359221,"Finance committee hears how Alaska uses ERA and CBRF to manage cash‑flow risks; general fund floor set at $400 million",346,723000,1069000,"/Search/View?dp=1&key=2192542-94783fdcc141325bc572cc43f7e378b7&start=723&end=1069","https://assets.pipeline.soar.com/2192542-94783fdcc141325bc572cc43f7e378b7/thumbnail_723000.jpg","/articles/6359221/Alaska/Finance-committee-hears-how-Alaska-uses-ERA-and-CBRF-to-manage-cashflow-risks-general-fund-floor-set-at-400-million","https://secure.pipeline.soar.com/6359221-8ae397ac7d4e385b76046f8bd4568bd3/orig.mp4?Expires=1773577569&Signature=YeIOAUI-v-Vay1YrXoBrEJZXmVZTNda2RZLmmhjmQfR1k7Ga~3DpOyPhp-Jy9kZLH6EyJ0gIGjS5vWCwuRrd10xqBtoiRP3NCldQMLsTqRIGPDsFmcvk~lqgV61wdSulI2aPqZDMBlZ4u8lkOlGYr52YxD~GQUEHqlEXNlTVrwptd0ZxEptb-GrAure5dy28SBHMIkBXkxOYXx3D1dsbbD2LY8khygkh-JwLV-5oec8m2oNtVXTgF~B17ih7h-In0DLgrdxZhq2SY0xZMdwqgxdco0zKEGas8RPz-M4WWz0fyQ73P~p6LLzwEK-vGQlXYuGnCEQ8WNCisbZ21~3bXQ__&Key-Pair-Id=KUT5TJCACFTXG","Juneau — Department of Revenue staff told the House Finance Committee on Jan. 31 that the state maintains a $400 million working floor in the general fund and uses a mix of tools — including the Earnings Reserve Account (ERA), the Constitutional Budget Reserve Fund (CBRF) and temporary borrowing under an interagency memorandum of understanding — to manage cash‑flow timing mismatches and revenue shortfalls.

Treasury Division Director Pam Leary and Commissioner Adam Crum outlined the daily cash‑flow monitoring process and the MOU between Revenue, the Office of Management and Budget, the Department of Administration and the Department of Law that governs temporary actions Treasury may take. “We pretty much do [cash projections] every day now, monitoring our our balances to see, if cash flows are not coming in that we expect or more is going out than we expect, and to execute the appropriate transfers from the ERA or CBRF,” Leary told the committee.

Why it matters: Timing mismatches—when the state pays money out before federal or other reimbursements arrive—can create short‑term liquidity pressure even when a budget is balanced on an annual basis. Committee members asked how large a disruption the state could tolerate and what assumptions Treasury uses when modeling scenarios.

Key details
- General fund minimum: Treasury said it maintains a working minimum balance in the general fund of $400 million to ensure daily operations; that figure represents a standing interagency working agreement.
- CBRF and SBR balances: Treasury reported a CBRF invested balance of about $2.7 billion at June 30, 2024 and an SBR (Statutory Budget Reserve) cash balance near $240 million (end of fiscal 2024 figures, with slight variation noted in December 2024 reporting).
- Federal reimbursements and timing: Commissioner Adam Crum told the committee Treasury sees about $95 million per week in federal reimbursements overall; he said Medicaid accounts for roughly half of that weekly inflow (about $45–50 million per week).
- Contingency planning: Treasury described stepped responses if daily forecasts show risks to the $400 million floor, including timing ERA transfers, temporary intra‑year borrowing from reserve accounts that would be repaid at fiscal year‑end, and — if revenue shortfalls extend beyond forecasts — seeking legislative appropriation of additional reserves.

Questions from lawmakers
Committee members pressed Treasury on “doomsday” scenarios (how large a federal funding pause or revenue shortfall could be sustained). Crum said Treasury modeled scenarios and, in one example, operations could continue into May of the year on the available cash if only partial federal reimbursements arrived. He emphasized the MOU’s role in escalating responses and ordering bill payments when needed.

Sweep and designated funds
Members raised repeated concerns about “sweep” practices (where unused balances in designated funds are moved on paper to the CBRF at fiscal year‑end). Treasury staff said many user‑funds are governed by statute, settlement or other restrictions and cannot be swept without legal or statutory changes. The committee asked for a staff follow‑up summarizing which smaller or user‑funds are protected from sweep and which are potentially sweepable.

Bottom line
Treasury officials told the committee the state has daily cash‑flow monitoring, a 400‑million general fund floor and a formal MOU with other agencies to coordinate transfers and temporary borrowing. Officials recommended continued monitoring and committed to follow‑up materials to answer questions about sweepable user funds and scenario modeling.","Treasury officials described daily cash forecasting, a memorandum of understanding to coordinate temporary borrowing and the state's approach to using the Earnings Reserve Account and Constitutional Budget Reserve Fund to address timing mismatches and revenue shortfalls.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6359226,"Alaska Treasury reports $4.5 billion gains in 2024; multiple state funds post strong returns",1396,4384000,5780000,"/Search/View?dp=1&key=2192542-94783fdcc141325bc572cc43f7e378b7&start=4384&end=5780","https://assets.pipeline.soar.com/2192542-94783fdcc141325bc572cc43f7e378b7/thumbnail_4384000.jpg","/articles/6359226/Alaska/Alaska-Treasury-reports-45-billion-gains-in-2024-multiple-state-funds-post-strong-returns","https://secure.pipeline.soar.com/6359226-96ff1f4a266e66e666ff49770b7d9ac0/orig.mp4?Expires=1773577569&Signature=is8fPEC5UfVDNvPITZhpkHpN2IiGJ~J7px6rf2ICNcmHHrv3bhXEU0nm7Qb3qpRd78ijoj7omMFcKJNZVIVtwXDVrqW9Yeg2fA66~B95gYOOJZI7mOD~0vOPUN5ktfTIdJa6k9jYF345onzwb0cCU-pw8uB042B2iKDTOmah1Rci8riy~tjhcumiQFz-kOt5x~acr7BFatqYmMmtuzF0JSb6aJQrvOYmn4Ys3VBwGw~CzXmcSjVXCv-PcTE5Mf~9AR9qRNpJ-7HCUtyGTazk3Z-AHWc6VVWuJuolPJx2Wrizz7dEyfFFCY2sin4A~zRVEjg~LOPAvW4SfoiOQnWiag__&Key-Pair-Id=KUT5TJCACFTXG","Juneau — Department of Revenue officials reported to the House Finance Committee on Jan. 31 that Alaska Treasury produced an aggregate 9.1% return across the funds it manages in 2024, generating roughly $4.5 billion in total gains.

The Treasury presentation, led by Treasury Division Director Pam Leary and Chief Investment Officer Zach Hanna, said strong performance across both public and private markets produced outsized results for several state portfolios. “Managing $50,000,000,000 in numerous investment funds and tracking cash flows is as complex as it sounds,” Leary said while describing the Treasury’s operations. Officials said the Treasury’s internal investment program contributed materially to the results.

Why it matters: Higher investment returns reduce the near‑term pressure on state budgets and the need for larger legislative appropriations to cover recurring payments, including retirement liabilities and education funding. Committee members pressed Treasury staff on how the gains affect reserves and long‑term obligations.

Key figures and fund results
- Aggregate return: Treasury reported a 9.1% return across all managed portfolios in 2024, producing about $4.5 billion in gains for the year.
- Asset‑class contribution: Officials said asset classes ranged from about 5% for cash equivalents to 24% for U.S. equities in 2024; those class returns formed the backdrop for fund performance.
- Constitutional Budget Reserve Fund (CBRF): Treasury reported the CBRF’s one‑year return and related activity added approximately $150 million in gains for 2024. The invested balance for the CBRF was reported at about $2.7 billion on June 30, 2024.
- Jafanzi (general fund pooled accounts): Combined Jafanzi 1 and Jafanzi 2 earned roughly $180 million in 2024; Jafanzi pools held about $3.7 billion at the end of the fiscal year.
- Alaska Higher Education Investment Fund: Reported one‑year performance around 11.4%, producing about $44 million in gains; the committee was told roughly $11 million was appropriated from the fund last year (committee member estimate).
- Public School Trust Fund: Ended fiscal 2024 at about $834 million and contributed $32 million to the public education fund for FY24; Treasury reported a one‑year return near 11.4% and a 10‑year annualized return around 7%.
- Retirement systems: Combined public employee and teachers’ defined benefit plans held about $31 billion at June 30, 2024 and produced about a 9.2% return for fiscal 2024.

Internal management and costs
Treasury officials emphasized internal management and lower fees: Hanna said the Treasury and the Alaska Retirement Management Board’s approach delivered excess returns over benchmarks and lower costs versus peers. Treasury estimated roughly $130 million of value added above benchmarks in internally managed portfolios and said ARM’s low‑cost approach saved system stakeholders roughly $30 million per year compared with median peers.

Quotes from staff
- Pam Leary: “Managing $50,000,000,000 in numerous investment funds and tracking cash flows is as complex as it sounds.”
- Zach Hanna: Treasury said internal management and active asset allocation produced excess returns and that the board’s low‑cost approach helped drive stronger long‑term performance.

What the committee asked
Committee members questioned staff about whether the recent returns are durable and how Treasury’s allocations will change as interest rates normalize. Hanna said Treasury has intentionally kept some traditionally longer‑duration allocations reduced in recent years and may modestly add risk as market conditions change.

Bottom line
Treasury officials told the committee 2024 was one of the stronger recent years for state portfolios, with broad gains across short‑ and long‑horizon funds. Officials said excess returns and lower fees helped shore up fund values, while noting allocations and liquidity remain tuned to each fund’s spending horizon and constraints.

The committee followed with further hearings on reserves, cash flow and retirement system liquidity later in the same session.","Department of Revenue officials told the House Finance Committee that Treasury returned 9.1% on assets it manages in 2024, producing about $4.5 billion in aggregate gains and notable results across the Constitutional Budget Reserve Fund, Jafanzi pools and long‑horizon education funds.","actionData","errors"]

Article not found

State retirement systems $31 billion in assets; officials say asset mix and liquidity increased to meet $1.5 billion annual payouts

Finance committee hears how Alaska uses ERA and CBRF to manage cash‑flow risks; general fund floor set at $400 million

Alaska Treasury reports $4.5 billion gains in 2024; multiple state funds post strong returns