Due to the recent market volatility, some SCERS members have asked whether their pension is safe. The brief answer is that all is well with your SCERS pension.

After markets dropped sharply in early 2025, especially in April after the Trump administration announced significant tariffs, the administration has since eased those tariffs to pursue trade negotiations with other countries.

Despite ongoing uncertainty around tariffs, trade policy, and global risks, stock markets have rebounded close to record highs. Bond markets are less positive, with yields still high due to inflation concerns tied to tariffs. Although volatility has decreased since April, uncertainty remains and could still affect markets.

However, SCERS’ pension is safe and strong because its long-term investment strategy uses disciplined asset allocation and broad diversification to handle market ups and downs.

“The SCERS Board and Investment Staff take a disciplined approach to rebalancing the portfolio to ensure that we are in line with our asset allocation targets, and the investment portfolio is structured with ample liquidity to meet our pension obligations, even during market volatility,” said Steve Davis, SCERS’ chief investment officer.

Through March 31, 2025, the first three quarters of SCERS’ fiscal year, SCERS’ portfolio was up 4.5% net of investment management fees. The longer-term returns are very strong, as SCERS’ portfolio has returned 9.9% and 7.4% net of fees over the 5-year and 10-year periods, respectively. That has outpaced SCERS’ actuarial rate of return of 6.75% and SCERS’ Policy Index benchmark return.

SCERS’ portfolio is tracking well during the last quarter of the fiscal year and is on pace to meet and potentially exceed the 6.75% actuarial rate for the fiscal year ending June 30, 2025.

Your SCERS’ pension is a lifetime guarantee, so you can be confident in your retirement future.