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Legislative

Impact of Economic Downturn on TRSL

Many of you have called regarding the financial condition of Teachers' Retirement during this very turbulent period. In response, I have enclosed a copy of an email that was sent by TRSL to the employing agencies. It should provide some comfort to the vast majority of our people who do participate in a defined benefit program. Please read the email and if you have any questions, please email me. - Tom Tate

Impact of Economic Downturn on TRSL:

While the Teachers' Retirement System of Louisiana (TRSL) is not immune from the effects of the current U.S. economic environment, the trust fund managed by TRSL remains sound, and retirement benefits of Louisiana's educators participating in the defined-benefit plan are secure.The TRSL investment portfolio is intentionally designed to withstand the most dramatic of market fluctuations, even those we have witnessed over the past few days. Our investment strategies are long-term, and our portfolio is highly diversified across multiple asset classes, hundreds of firms and thousands of securities. In fact, the investments we have in companies making the headlines are just a small fraction of our overall portfolio. Additionally, retirement benefits for TRSL members who participate in the defined-benefit plan are guaranteed by the state constitution. These benefits are based on the member's years of service, final average compensation and a benefit factor of 2.0 percent, 2.5 percent, or 3.0 percent, not the value of the trust fund.Some employees who work in the field of higher education opted to participate in the Optional Retirement Plan (ORP)-which is a defined-contribution plan. Their individual pension funds are self-directed and are subject to the solvency of their ORP carrier and the value of the investments the individual selected. It is good practice for all ORP participants to regularly review their investment portfolios with their financial advisors. This helps ensure that participants use thoughtful, deliberate investment strategies that match the level of risk with which they are comfortable. Finally, it is important to remember that as a long-term investor, TRSL maintains a highly diversified, high-quality portfolio of global assets built to bear the inevitable ups and downs of investing in capital markets.

Maureen H. Westgard

Director Teachers' Retirement System of Louisiana