Iowa pension could lower benefits for 312,000 members

http://www.omaha.com/article/20090626/NEWS01/706269867

Published Friday June 26, 2009

DES MOINES, Iowa (AP) — State officials said Iowa’s largest public employee pension fund could be forced to lower benefits for future retirees because of the struggling economy.

The Iowa Public Employees’ Retirement System’s net assets have plunged from $22.4 billion to $18.4 billion in the past year. The loss hit as the pension fund already faced a long-term shortfall of about $2.7 billion.

State Treasurer Michael Fitzgerald, who serves on the fund’s investment board, said it’s likely that benefits will have to change in the future. Those changes could include reductions in retirement payouts.

The Iowa Public Employees’ Retirement System has 312,000 members. It serves current and former employees and retirees of state and local governments, public schools and other agencies.