PERFORMANCE SYNOPSIS - MID-YEAR 2017 RETURNS
OREGON INVESTOR UPDATE
Mid-year 2017 - Audited figures
Oregon State Treasury
Tobias Read, State Treasurer
Invested for you
In This Issue
1 Smart changes
coming to Individual
Account Program
2 Synopsis of mid-
year 2017 returns
3 How will Target
Date Funds impact me
4 Oregon Investment
Council Chair Rukaiyah
Adams
4 Lawmakers OK new
staff, will save money
for PERS
Results at a glance
+7.3%
6-month
Total OPERF
+5.4%
10-year
Total OPERF
Total Assets
$73.6 billion
Total beneficiaries
347,324
Benefits that are paid
with investment returns
73.4¢
of every dollar
Total benefits paid in
2016
$3.5 billion
Sources: State Street; Oregon
Public Employees Retirement
System (June 2017).
Did you know?
Assets of the Oregon
Public Employees
Retirement Fund may
not be diverted or other-
wise put to any use that
is not for the exclusive
benefit of members and
their beneficiaries.
ORS 238.660
The Sprague Fountain on the Oregon Capitol Mall was turned on for Solar Eclipse Day on August 21.
INVESTOR EDUCATION
Are you saving smartly for retirement? Treasury
will help, by making strategic investment best
practice' reform to Individual Account Program
In life, and especially when it
comes to retirement, one size
does not fit all. At Treasury,
we're taking an important step
to improve public workers'
retirement security.
TOBIAS READ
State Treasurer
Participants in the Oregon
Public Employees Retirement
System have several compo-
nents to his/her retirement
mix: Those include a guaranteed pension; a
non-guaranteed Individual Account Program
(IAP); and also what you save and invest on
your own. At Treasury, we manage invest-
ments for the first two components
pension and IAP account.
=
-
your
Every worker needs to determine a sufficient
savings level and be smart and strategic
about investing to be sure those savings are
there when needed. In Oregon, public work-
ers hired after 2003 enjoy less generous pen-
sion benefits, which means they should be
saving more on their own.
Treasury manages the Oregon Public Employ-
ees Retirement Fund (also known as OPERF)
to achieve strong and also sustainable, long-
term returns. OPERF includes money to pay
pensions, which are guaranteed, as well as
IAP account benefits, which are not guaran-
teed and instead depend on market-based
investment performance.
Starting in 2018, and as part of our goal to
improve workers' retirement security, we will
revise the IAP investment structure. Specifi-
cally, we plan to better match IAP partici-
pants' investments with their age.
This matching approach is an "investment
best practice" and will replace IAP's current
"one-size-fits-all" structure. The upshot: par-
ticipants will be less exposed to volatility and
less likely to experience large losses - or
large gains - toward the end of their career
and into retirement.
We are proud to introduce this important
investment best practice change, and suggest
you refer to page 3 for a graphic illustration
of how the new IAP investment structure will
work.
As always, thanks for the work you do, for
Oregon.View entire presentation