RESPONSE TO NEWSPAPER ARTICLE in the SUNDAY OKLAHOMAN
MARCH 5, 2006

The Teachers¿ Retirement System is one of the worst-funded governmental pension plans in the country.  The Board of Trustees and staff of the Retirement System have been reporting the underfunded status of the pension plan since 1990.

The Board of Trustees support the Governor¿s proposal to deposit $100 million from the state¿s revenue surplus in the TRS Fund.  A $100 million investment in TRS today will grow to almost $1 billion over the next 30 years.

There is no danger that retired or active members will not receive the benefits they have earned.  Benefit payments will be covered, but the lack of funding is costing plan participants and taxpayers more than if the System was properly funded.

The System has purposely adopted an aggressive investment strategy.   The Board believes the System can produce significantly greater returns over time by overweighting our equity position.

At the same time the Board rebalances to our asset allocation target and takes other measures to protect against downside risks.  This approach is working and has produced above average returns in both good and poor economic cycles.

More information is available on this website or you can email or telephone TRS if you have additional questions.