Public Employee Press

Annuity fund statements mailed to participants

The net return on investments of the DC 37 AFSCME Annuity Fund after administrative fees was -1.74 percent in fiscal year 2008, which ended June 30. The year’s return on fund investments was -0.33 percent, according to the fund’s annual statement, which it issued to 73,500 account holders in July.

In fiscal year 2007, the annuity fund’s return on investments was 11.4 percent.

The lower return in 2008 reflects the current crisis in the financial sector, with equity markets reeling under the impact of the continuing wave of mortgage defaults, rising energy and food costs, increasing unemployment and the decline in the value of the U.S. dollar.

“The distressed economy of the last few months has been particularly tough on the equities market,” said James Barhold, manager of the Disability, Death Benefit and Annuity Unit of the DC 37 Health and Security Fund. “The market moves in cycles. Hopefully, the poor conditions won’t persist for a long time.”

The annuity fund was established under the 1995-2000 contract, which provided lump-sum contributions for qualified members. Some locals have negotiated recurring annuities, which provide additional compensation to the annuitants’ tax-deferred accounts. The extra funds help offset administrative fees, which can take a big bite out of account holdings in bad years.

A large number of annuitant year-end statements were returned to the fund office as undeliverable. If you believe you are an annuitant and you did not receive your statement, please contact the fund office at 212-815-1888.