In recent weeks, media headlines have been dominated by turmoil in the financial markets. Examples of this include the well publicized problems with AIG, Fannie Mae, Freddie Mac, the failure of Washington Mutual and the recent bankruptcy of Lehman Brothers. This has spurred an increase in the number of phone calls from CCCERA members concerned about their retirement benefits.

A defined benefit pension plan is designed to provide employees with a safe, secure retirement benefit which is immune from fluctuations in the capital markets. As a defined benefit plan, the benefits of CCCERA’s members are guaranteed by the employer and are not impacted by the erratic movements in the financial markets.

While the benefits of CCCERA’s members are secure and stable, CCCERA’s assets are not immune from volatility in the financial markets. Like all institutional investors with large global portfolios, we are impacted by downturns in the stock market. One way in which we deal with this is through a well planned, diversified investment program. We have investments across the stock and bond markets, both within the US and international markets. We have investments globally in real estate and private equity, and investments in energy partnerships. This diversification is key to moderate the volatility experienced in markets day-to-day, month-to-month and year-to-year. We remain focused on implementing a well structured, diversified investment program designed to provide solid long term returns with an appropriate level of risk. The Fall 2008 CCCERA Viewpoint provides an excellent overview of CCCERA’s investment program.

For more information, click here to read FAQs about your benefits and the safety of CCCERA.