Your FCPS Pension
is One Less Thing to Worry About
For some of our members, the coronavirus pandemic is creating financial uncertainty and concern. Rest assured that the FCPS pension benefits you’ll receive through ERFC are safe, and we continue to work hard remotely on your behalf. While the spread of COVID-19 has had a major impact on society and global financial markets, your FCPS pension remains well funded.
It’s important to remember that ERFC is a long-term investor—for us that means 20+ years. As long-term investors we know that losses in the short-term are unavoidable. Our goal is to generate strong risk-adjusted returns over the long-term to help ensure that your FCPS pension benefits remain strong.
Over the past 40 years ERFC has weathered many financial storms, the Dot-Com Bubble in 2000, the Global Financial Crisis in 2008, to name a couple within the last 20 years. Over the past 32 years, ending February 2020, the Fund has managed to generate an annualized return of 8.8% (after investment fees). We’ll continue to adapt, work hard, monitor our investments, and take prudent actions on behalf of our members.
The ERFC investment portfolio remains fully diversified over many asset classes in order to help mitigate unknown storms. Our asset allocation appears below for your reference.
ERFC Asset Allocation
Period ending June 30, 2019
We’ve proactively continued to make great strides in increasing the sustainability of the Fund. Some of the steps we’ve taken to further strengthen the Fund’s sustainability include:
- Reduced money manager fees, generating $40 million in fee savings over the next 10 years
- Became a Lean Six Sigma organization, which will help quality and efficiency of services, and further reduce operational costs by $2 million over the next 10 years
- Adopted a new diversified and balanced portfolio aimed at weathering volatile market environments, and increasing risk-adjusted returns
- Ensured sufficient liquidity is available to pay ongoing Fund obligations, and take advantage of market opportunities
Remember that ERFC is another benefit only available to FCPS employees, which contributes to our members' ultimate financial independence. Let us take care of your retirement while you focus on staying healthy and safe!
If you need to contact us, please visit our website for more information.
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