Officials in South Dakota report that the state retirement system has recovered from investment losses taken earlier in the year and is now in better shape.
Last fall, the system lost 8 percent in value at one point, but it has now turned around to post gains as high as 3.4 percent since the beginning of the fiscal year on July 1st, The Associated Press reports. The retirement system's executive director, Rob Wylie, has said that the program will be fully funded if it holds onto those gains until June, ending the year with sufficient assets to cover the cost of all future benefits allocated to enrolled state and local retirees.
The system's assets fell to $5.6 billion in June 2009 from a height of $8.2 billion before the recession, the news source notes. With a substantial recovery, the funding level is one of the nation's best, according to Wylie, with most other public pension plans performing less strongly.
State Investment Officer Matt Clark noted that the system has been doing well recently in part because of the gains in stocks, which it invested in as prices fell during the recession. Officials are likely to start moving from stocks to other investment options now, Clark indicated, suggesting that prices are hitting fair value.
