GERS trustees accept treasurer and investment reports; plan assets about $512 million, May cash deficit reported

The Government Employees Retirement System board of trustees approved the minutes and accepted the treasurer's and investment officer's reports at its regular virtual meeting on June 18, 2025, trustees said.

The reports showed total plan assets of approximately $512,000,000 as of May 31, 2025, and a net cash deficit for May of $11,700,000. The fiscal-year-to-date position showed a net cash surplus of about $4,200,000, the treasurer reported.

The treasurer, identified in the meeting as Miss Jeremiah (Chief Financial Officer), told trustees that total collections for May were $14,402,828 and total disbursements were $26,104,093. Year-to-date collections were $210,767,221 and year-to-date disbursements were $206,506,662. The treasurer also said the system remains behind on certain promised fund collections, citing roughly $45,000,000 shortfall this year plus about $48,000,000 outstanding from a prior fiscal year — a combined shortfall the treasurer described as “about $90,000,000.”

Investment Officer Mr. Henderson reported that the plan returned about 2.7% for May and about 4.6% fiscal year to date. Domestic equities led gains for the month, and the total plan market value closed at roughly $512,000,000 after an unrealized appreciation of about $13,700,000 in May. To raise cash during the month, staff sold roughly $20,000,000 across several indexed positions, drawing $7,000,000 from the Russell 1000 index, $5,000,000 from developed market equities, $4,000,000 from the U.S. aggregate bond index and $4,000,000 from the U.S. high-yield bond index, Henderson said. Total investment- and custodian-related fees for the month were reported at roughly $46,000.

Board action on the reports took place by roll call. The meeting record shows the following formal actions: acceptance of the minutes as amended (motion moved by Trustee Dolce, seconded by Trustee Clark; recorded as 4 yes and 2 absent), acceptance of the treasurer's report (moved by Trustee Smith, seconded by Trustee Dorsey; recorded as 5 yes, 1 absent), and acceptance of the investment officer's report (moved by Trustee Dolce, seconded by Trustee Clark; recorded as 5 yes, 1 absent). The board then approved a motion to adjourn (recorded as 5 yes, 1 absent).

Why it matters: Plan liquidity and the pace of promised-fund collections affect how much the retirement system must draw from investments to meet benefit payments. Trustees said they will continue monitoring cash flows and collections and will address portfolio liquidity as needed.

The board scheduled a retreat next month to review in more detail the ongoing system migration project and other operational matters, administrators said.