Florida's FRS pension fund down 27% from peak

[News Flash]

TALLAHASSEE - Florida's public employee pension plan has lost more than a quarter of its peak value, but Gov. Charlie Crist and other officials Monday said the fund is built for the long haul and there is no need to panic.

They said Florida has fared no worse than most big investors -- a bit better than some major Wall Street indicators -- due to slumps in the stock market, real estate and other segments of the national and world economies.

The fund, which covers state and local government employees including teachers, lost $37.9 billion -- 27 percent -- over 13 months through Oct. 31. That dropped its value to $100.5 billion.

"No need to panic with this at all," McCollum said. "We should expect to be where we are now and we should expect as the market recovers so will this fund, and handsomely so."

"The current global financial downturn has affected everyone," she said.

An annual assessment in June showed the pension fund was worth 7 percent more than the level it would need to fully cover everyone entitled to a pension.

"A vast, vast, vast majority were below 100 percent," MacKee said. "We're in an enviable position."

It may take three or four years, though.

Most of the decline has come over the last three months. The pension fund's value dropped by 19 percent since June, MacKee said.

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We are very lucky to have these jobs right now. There is going to be alot of good people loosing jobs over the next year in the private sector before things improve.

Even if we dont get raises we are still lucky. I would never give up this job.

Just want us all to know how lucky we are. Most of us know it.