Sitnews - Stories In The News - Ketchikan, Alaska - News, Features, Opinions...


Alaska State Pension Investment Board
Nominated For Top Public Pension Plan in the U.S.


February 12, 2005

Institutional Investor announced in their Money Management Letter that the Alaska State Pension Investment Board is one of three nominees for top large public (pension) plan in the United States for 2004. The other nominees are the Pennsylvania State Employee Retirement System and the State Universities Retirement System of Illinois.

Nominations are based on investment performance, innovation, and notable asset allocations made during the year. Large public plans are those plans managing at least $5 billion. The Alaska State Pension Investment Board manages about $15 billion in defined benefit and defined contribution plans. Rates of return on the two largest components, the $8.4 billion Public Employees' Retirement System and the $4 billion Teachers' Retirement System for the most recently ended fiscal year were 15.08% and 15.09% respectively.

The Money Management Letter cited absolute return strategies adopted by the Alaska State Pension Investment Board, and noted the recent move into agricultural land. Also discussed is a move to real estate investment trusts that will be managed in-house, thereby avoiding the fees normally paid by institutional investors in this asset category.

Board Chair Gail Schubert said, "What is significant about this recognition is that it draws attention to the consistent results achieved over the long term. The recent investment allocations are important but rates of return that regularly exceed benchmarks are the bigger story for the Alaska State Pension Investment Board." The board consists of four trustees appointed by the governor and four trustees elected by plan beneficiaries. Board meetings are open to the public.

Since its inception, the Alaska State Pension Investment Board has delegated day-to-day investment responsibilities, including governance and compliance, to the Treasury Division of the Alaska Department of Revenue. The Treasury Division also manages 27 other funds including the General Fund and the Constitutional Budget Reserve Fund. Most fixed income investments are managed in-house, with State Investment Officers buying and selling securities beginning at 5:45 a.m. each morning. Many other types of investments are made by money management firms selected by the board, with governance and compliance provided by the Treasury Division.


Source of News:

State of Alaska - Department of Revenue
Web Site


E-mail your news & photos to

Publish A Letter on SitNews
        Read Letters/Opinions
Submit A Letter to the Editor

Stories In The News
Ketchikan, Alaska