GERS treasurer and investment officer flag cash deficit, declining asset trend
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Summary
GERS officials reported a February net cash deficit and year-to-date shortfall of roughly $9.34 million and described market performance that produced mixed returns; investment staff reported an ending market value near $500.5 million and described allocations and withdrawals made to meet benefits.
GERS officials told trustees March 26 that the plan experienced a net cash deficit in February and a year-to-date deficit that the treasurer reported as roughly $9.34 million, and they urged continued attention to funding and contribution policy.
Treasurer Ali provided monthly and year-to-date collection figures, annuity disbursements and administrative expenses, and said the fund’s cash position reflected both changes in the funding note and lower-than-expected covered revenues. Ali said staff had advised the legislature about the need to consider contribution changes and noted early warning signs in cash flows.
Investment officer Anderson briefed trustees on portfolio performance through Feb. 28, 2026. Anderson reported the total plan returned about 1.2% for the month and about 5.1% fiscal year to date, with international equities outperforming U.S. equities. Anderson said the plan withdrew $20 million in February to meet benefits and listed asset-allocation balances and fees.
Trustees and staff discussed the multiyear trend in market value, including a decline from a high in earlier years to a lower level during 2017–2022 and subsequent recovery; the treasurer and investment officer characterized the current position as an early-warning situation for funding and liquidity and reiterated that actuarial-recommended contribution changes (including a previously requested 3% employee contribution increase) remain important options.
The board did not adopt any new statutory or contribution changes during the meeting; staff said they would continue to monitor cash flow and report back to trustees.
