HONOLULU (AP) — Hawaii’s largest public pension fund suffered its worst quarterly loss in more than 17 years because of the economic impact of the coronavirus.
The state Employees’ Retirement System investments fell 9.5%.
The fund’s assets, which include contributions and distributions, shrank by nearly $1.8 billion, to $16.2 billion, according to a report by investment adviser Meketa Investment Group.
The decrease was the largest percentage drop for investments since the third quarter of 2002, when the fund lost 9.7%, and the fourth-largest decline since the third quarter of 1990, when it fell 7.6%.
The pension fund provides retirement, disability and survivor benefits. System Executive Director Thom Williams said the fund’s nearly 126,000 benefit recipients do need to worry about receiving money they earned.
“Our members and beneficiaries face absolutely no risks relative to our financial capacity to pay promised benefits or our operational ability to process payments and service our members,” Williams said.
The fund had a $14.08 billion shortfall entering the fiscal year that began July 1, 2019. The fund was up 5.3% as of Dec. 31 and ahead of its pace to reach its annualized 7% long-term return target.