Does the Stock Market Decline Affect My SERS Pension?
The good news for SERS benefit recipients is that stock market declines do not affect benefit amounts. All benefit payments are being processed as usual and will be delivered on time.
Under current Ohio law, once you retire your pension is guaranteed for life and cannot be reduced. This is one big advantage that defined benefit (DB) pension plans like SERS have over defined contribution (DC) plans such as 401(k)s, IRAs, and 403(b) retirement plans.
The reason DB plans like SERS can offer this guarantee is because our investment strategy takes a long-term approach to investing. SERS does not have to reduce exposure to certain types of investments as a member gets closer to retirement age like DC plans do. In addition, SERS’ assets are diversified among many different types of investments, so a shock to one type won’t affect the others.
SERS was able to withstand the 2008-09 Great Financial Crisis and we will be able to recover from the current market decline as the economy improves after the COVID-19 disruption.