TRS: A pandemic economic meltdown is a really good time to have a defined benefits pension

Jase Aubrey, the new chief investment officer of the Teacher Retirement System, has posted a video reassuring members that their pensions are safe, even as the coronavirus pandemic batters the economy. Aubrey emphasized that the market decline will not affect retirees’ pension payments. They will continue to be disbursed on time.

Aubrey explained that TRS has key advantages built into its portfolio. First, the trust is long-term focused and designed to weather market downturns. Second, the trust is well-diversified, with 21 percent of its assets held in stable value investments, such as U.S. Treasury bonds. Third, the trust is liquid with large amounts of cash, government bonds and public equities that could be sold to meet any obligations or invest in new opportunities. And, Aubrey noted, the TRS investment team has fully transitioned to working from home and has all the resources it needs to be fully operational.

Aubrey said the TRS portfolio is stable and strong and will be able to weather the times ahead. You can learn more about the fund here.

Have questions? Call TRS at 1-800-223-8778.