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HomeMy WebLinkAboutNew Mexico Educational Retirement Board - Public Financial ReportThe Fund’s Summary Statements of Changes in Net Position show the financial activity occurring during a fiscal year. Santa Fe (Main) Office: 701 Camino de los Marquez Santa Fe, NM 87505 • (505) 827-8030 Toll free number: (866) 691-2345 Albuquerque Office: 8500 Menaul Blvd. NE, Suite B-450 Albuquerque, NM 87112 • (505) 888-1560 © 2021 NMERB For six consecutive years, NMERB has received GFOA’s Award for Outstanding Achievement in Popular Annual Reporting. NMERB believes this current PAFR also meets the criteria for the prestigious annual award. Summary Statements of Fiduciary Net Position (thousands) 2021 2020 2019 Assets $16,514,019 $13,147,762 $ 13,879,362 Liabilities 152,495 128,565 334,671 Net Position $ 16,361,524 $ 13,019,197 $ 13,544,691 Summary Statements of Changes in Net Position (thousands) 2021 2020 2019 Additions: Contributions $ 782,939 $ 781,281 $ 709,991 Net investment 3,833,449 (75,878) 1,037,882 Other income 1,092 241 488 Total additions 4,617,480 705,644 1,748,361 Deductions: Benefit payments and refunds 1,263,064 1,220,260 1,164,645 Administrative 12,088 10,878 9,326 Total deductions 1,275,152 1,231,138 1,173,971 Net increase 3,342,327 (525,494) 574,390 Net position Beginning of the year 13,019,197 13,544,691 12,970,301 End of the year $ 16,361,524 $ 13,019,197 $ 13,544,691 Unfunded Actuarial Accrued Liability (millions), Funded Ratio, Funding Period Year UAAL Funded Ratio Funding Period 2021 $ 8,666 62.8% 42 yrs 2020 $ 9,004 60.4% Infinite 2019 $ 7,904 62.9% 47 yrs 2018 $ 7,461 63.5% 70 yrs 2017 $ 7,363 62.9% 61 yrs New Mexico Educational Retirement Board A Pension Trust Fund of the State of New Mexico Popular Annual Financial Report For the Fiscal Year Ended June 30, 2021 FINANCIAL RESULTS The Fund’s Summary Statements of Fiduciary Net Position illustrates NMERB assets and liabilities at the end of a fiscal year. INVESTMENTS NMERB invests for the long term. Its well-diversified portfolio, especially in times of investment market volatility, is the best way to ensure a secure retirement for NMERB’s members. For the year ending June 30, 2021, the Fund experienced a net investment gain of $3.8 billion. It is the highest dollar amount of returns for any year in the history of the Fund and translates to a return of 28.8% for the year. This return compares to a net unrealized loss of 0.97% in fiscal year 2020. Assets increased from $13.1 billion twelve months ago to $16.5 billion on June 30, 2021, with $519.6 million in net distributions during the year. Ranking in the top 27% percentile of its peers, the Fund outperformed the policy index by 448 basis points. From July 1, 1983 through June 30, 2021, NMERB’s annualized investment return, net of fees, was 9.24%. Summary of Actuarial Information: The unfunded actuarial accrued liability (UAAL) is the excess of the actuarial accrued liability over the actuarial value of assets. The funding period is a theoretical calculation of the length of time required for the UAAL to be completely paid off. ABOUT THIS REPORT This report is a summary of NMERB’s services, membership, investments, and financial results, as reported in its Annual Comprehensive Financial Report (Annual Report) for the fiscal year ended June 30, 2021. All funds administered by NMERB and presented in the Annual Report are included in this report. The 2021 Annual Report is presented in conformity with generally accepted accounting principles (GAAP) and, therefore, includes more detailed information than this summary, including management’s discussion and analysis of financial results. The Annual Report can be viewed online at: https://www.nmerb.org/Annual_reports.html. NMERB’s SERVICES NMERB provides retirement benefit services to over 163,000 members and 216 educational employers. NMERB was created by the New Mexico Educational Retirement Act to administer the Educational Employees’ Retirement Plan and to provide retirement and disability benefits for employees of New Mexico’s public schools, institutions of higher learning, and state agencies providing educational programs. NMERB has managed the retirement assets of New Mexico’s educational employees since 1957. MEMBERS AND EMPLOYERS Board of Trustees The Board of Trustees provides policy guidance and direction to NMERB. It also appoints NMERB’s executive director. On March 3, 2021, the Board appointed the current executive director, Rick Scroggins, CPA. The board is comprised of nine elected, appointed, and ex-officio members: H. Russell Goff, Vice-Chair, NMAER Appointee Larry Magid, Secretary, Governor Appointee Mary Lou Cameron, Member, NEA Appointee Donald Duszynski, Member, AAUP Appointee Matías Fontela, Member, AFT Appointee Tim Eichenberg, Ex-Officio Member, State Treasurer Adán Delgado, Ex-Officio Designate for Secretary of PED Mario Suazo, Ex-Officio Designate for Secretary of NMHED Vacant, Governor Appointee Board membership is established by the New Mexico Educational Retirement Act. MANAGING THE RETIREMENT ASSETS OF NEW MEXICO’S EDUCATIONAL EMPLOYEES SINCE 1957 Schedule of Contributing Employers by Year Employer Category 2021 2020 Charter schools 97 96 Public schools 89 89 Special schools 4 4 State agencies 11 11 Universities and colleges 15 15 Total 216 215 Retirement Benefits by New Mexico County Amount County (thousands) Bernalillo $373,994 Doña Ana 133,005 Sandoval 58,698 Santa Fe 53,708 San Juan 44,954 Valencia 36,178 Chaves 28,390 Eddy 25,038 San Miguel 23,343 Rio Arriba 22,820 Otero 21,222 Curry 19,731 Grant 19,620 Lea 18,947 McKinley 19,422 Socorro 16,096 Taos 16,092 Roosevelt 13,879 Lincoln 11,721 Cibola 7,797 Los Alamos 7,441 Luna 7,308 Colfax 6,668 Torrance 5,288 Mora 4,507 Quay 4,483 Sierra 4,471 Guadalupe 2,724 Union 1,993 Hidalgo 1,971 De Baca 1,262 Catron 1,277 Harding 886 Total $1,014,934 Fiscal Year 2021 Contribution Rates Wages Member Employer Total Over $24,000 10.70% 14.15% 24.85% $24,000 or less 7.90% 14.15% 22.05% Total Membership Status by Year Status 2021 2020 2019 Retirees and beneficiaries 52,790 51,397 50,197 Active working 58,988 61,091 60,197 Inactive, vested 12,215 11,513 11,436 Inactive, nonvested 39,321 39,401 39,703 Total 163,314 163,402 161,533 Pension benefit payments made by NMERB significantly contribute to New Mexico’s economy. In fiscal year 2021, gross benefit payments paid to retirees living in New Mexico’s 33 counties were $1,014,933,931.