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Office of Program Policy Analysis and Government Accountability

Compared to Other States, the Pension Plan Is Better Funded, Incurs Lower Investment Fees, and Has Fewer Trustees; Investment Returns Are Average, Report No. 11-10, February 2011
 
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  • State Board of Administration (SBA) managers have consistently met investment goals for both the Florida Retirement System Pension Plan and Investment Plan, but the SBA’s results are average compared to the investment performance of other states. The Pension Plan currently has a funding ratio of 87.9%, and at this time does not have sufficient assets needed to pay current and future expected benefits for participants and their beneficiaries. However, experts generally consider public pension plans with funding ratios at or above 80% to be fiscally sound. The SBA’s external manager and brokerage fees are below the average fees paid by other states.
  • The SBA’s three-member board of trustees is smaller than the oversight boards of almost all other states. The SBA has procedures in place for overseeing its investment managers. However, the SBA and the Division of Retirement could improve their reporting on state pension plans by developing a single annual report that provides policymakers with comprehensive financial, investment, actuarial, and statistical information.

Which Government Program Summaries contain related information?

State Board of Administration of Florida
Retirement Benefits Administration

What other OPPAGA-related materials are available?

  • Report No. 13-05 FRS Pension Plan Investment Returns Are Similar to Those of Other States; SBA Is Increasing Alternative Investments,published in February 2013.
  • Report No. 10-60 The Florida Growth Fund Added Investments in 2010, but It Is Still Too Early to Assess Total Economic Impact,published in December 2010.
  • Report No. 10-29 FRS Defined Contribution Plan Costs Are Typically More Predictable; the Fiscal Impact of Requiring New Employees to Enroll in the Plan Is Influenced by Many Factors,published in March 2010.
  • Report No. 10-19 Florida Retirement System Funds and Investment Returns Declined with the Economy; the SBA Reports That Its Investment Strategy Is Designed to Withstand Losses,published in February 2010.
  • Report No. 10-15 Several Options Are Available for Modifying the Florida Retirement System’s Class Structure to Reduce System Costs,published in January 2010.
  • Report No. 09-45 SBA Has Implemented the Florida Growth Fund; Economic Impact of Investments May Not Be Apparent for Several Years,published in December 2009.
  • Report No. 08-72 Economically Targeted Investment Program Under Development,published in December 2008.
  • Report No. 06-68 Progress Report: Use of Investment Returns Has Increased; Plan for Addressing Associated Risks Should Be Documented,published in November 2006.
  • Report No. 04-70 Multi-Year Projections of Retirement System Funding Should Be Provided to the Legislature,published in October 2004.
  • Report No. 02-37 While State Board of Administration Investments Perform Relatively Well, the SBA Should Reassess Planned Expansion of Alternative Investments,published in June 2002.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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