During the Supplemental Retirement Board Meeting held on August 3, 2023, in Portsmouth, Virginia, key discussions centered around the security and management of the city’s pension and retirement systems. The meeting highlighted the ongoing efforts to protect against fraud, particularly in the context of 401(k) plans, which are more susceptible to fraudulent activities compared to traditional pension systems.

The board emphasized the robust security measures in place, including a multilayered approach to data protection and compliance with best practices established by the Department of Labor. These measures ensure that the city’s retirement plans remain secure and that participants are protected against potential fraud. The representatives noted that there have been no reported issues of fraud within Portsmouth’s retirement systems, which is a positive indicator of their effectiveness.

Financial updates revealed that the pension portfolio closed at $192.6 million at the end of the second quarter, with over a thousand individuals currently receiving or eligible to receive benefits. The board reported that contributions for the year had been fully made in the first quarter, amounting to $6.2 million. Monthly distributions continue to be issued, with approximately 600 checks processed each month.

The meeting also addressed the status of active participants in the retirement systems. Currently, there are seven active members in the supplemental system, all over the age of 60, reflecting the long-term commitment of the city to its employees. The board noted that many individuals have been receiving benefits for over 40 years, showcasing the stability and reliability of the pension system.

In terms of expenses, the board reported that the management costs of the retirement systems remain low, with total ongoing expenses just above half a percentage point. This efficient management is crucial for ensuring that more funds are available for the beneficiaries.

As the meeting concluded, the board expressed gratitude for the collaboration with the city’s benefits team and reaffirmed their commitment to maintaining the integrity and security of the retirement systems. The discussions underscored the importance of these systems in providing financial security for Portsmouth’s retirees and the ongoing efforts to adapt to changing financial landscapes while safeguarding the interests of the community.