By Nolan McKendry | The Center Square

The Louisiana State Employees’ Retirement System saw significant financial strides in the fiscal year ending June 30, 2024, according to LASERS’ annual comprehensive financial report.

The system’s net position grew by $1.5 billion, reaching $15.97 billion, while its investment portfolio earned a remarkable 14% gross return, placing it in the top 7% of similar public pension plans.

LASERS supports 41,989 retirees, an increase from 41,892 in 2023, with annual benefit payments totaling $1.5 billion, down 2% from the previous year. Active membership includes 39,089 state employees, with 3,902 in hazardous duty roles and 32,472 classified as regular employees.

The plan’s unfunded pension liability stands at $5.4 billion, or 240.8% of covered payroll, reflecting reforms to strengthen long-term financial stability. LASERS reduced its discount rate from 8.25% to 7.25% over several years, aligning with market expectations and improving stability despite increasing liabilities by $2.2 billion.

The system’s investment value surpassed $15 billion, buoyed by double-digit equity returns. U.S. equities led with a 21.8% return, followed by global multi-sector assets at 14.3%. The 7.37% 30-year investment yield outpaced the actuarial assumption of 7.25%.

LASERS attributes its strong performance to strategic asset allocation adjustments in May 2024, including increased investments in private markets and global multi-sector assets. Nearly 40% of assets are managed internally, saving millions annually in fees.

These results underscore LASERS’ commitment to safeguarding retirement benefits for its members while ensuring the system’s long-term health through prudent financial management.