SERS pensions are guaranteed safe -- how about ours?

From John Curry, October 31, 2008
Subject: An SERS pension is guaranteed by Ohio law and "cannot be reduced due to investment losses." How 'bout STRS pensions????????????

This one is taken right from the SERS website! John

Amid Latest Market Turmoil, SERS Pensions Are Safe

(9/26/08) - SERS wants to reassure its members and retirees that in these challenging economic times, SERS retirees’ pensions are safe and secure for the following reasons:

* A SERS pension is guaranteed by Ohio law (section 3309.661 of the Revised Code) and cannot be reduced due to investment losses.
* SERS’ investments are diversified and investment performance does not hinge on any one investment or on any one firm’s success or failure.
* SERS takes a long-term approach to investments; this long-term approach will help us weather challenging financial times.

SERS’ pension plan is a defined benefit (DB) plan which means that the pension benefit is determined based on a formula of age, years of service, and salary, not investment returns. A defined contribution (DC) plan, or a 401-K, is based on contributions and investment earnings on the contributions.

Recently, you may have heard politicians and financial experts say that during times of economic crisis “pensions are at risk,” with no distinction between public and private pensions. However, your SERS public pension is not at risk.

To find out more about what public pensions are doing during this current downturn, click here to read the National Association of State Retirement Administrators’ (NASRA’s) recent article, “State & Local Pensions Navigating the Storm.