(Closed to new investments effective April 1, 2006)
The Equity Fund seeks to provide long-term growth of principal and income and may produce average returns that are higher than the assumed 4% annual investment return. This option is not open to new annuitants.
This Annuity is closed to new investments. Members who annuitized prior to April 1, 2006, chose the Equity Benefit Annuity and did not convert to the Basic and/or Participating Annuity, remained in the Equity Benefit Annuity.
The Equity Benefit Annuity is a broadly diversified portfolio of domestic and international equity securities further diversified by market capitalization, sector and style.
Alternative assets are permitted, within limits, subject to approval by the Investment Committee. Alternatives may include private equity (buyouts, venture capital, distressed), real assets (real estate, timber and other natural resource based assets) and hedge fund strategies such as arbitrage, relative value, directional, and event-driven, within limits determined by the Investment Committee of The Pension Boards.
Payments from this Annuity reflect the performance of our Equity Fund, with a three-month lag, minus the 4% annual growth assumption that is built into the level of a member's initial Annuity payment.