STRP Funding Remains Strong

The year ending June 30, 2023 saw bond markets struggle as several investment challenges persisted, including heightened inflation, increased interest rates, recession fears and continuing geopolitical discord. Meanwhile, equity market returns increased and helped buoy the STF’s investment returns.

Following the completion of an asset-liability study in 2022, the investment team has been steadily increasing investments in infrastructure and private credit. These assets, along with equity, delivered strong returns, mitigating bond losses. The Federation ended the year with a total-fund return of 9.3 percent. After fees and expenses, the annual net rate of return being credited to STRP voluntary and prior plan accounts landed at 8.81 percent.

The Federation continues to invest for the long term and, as such, expects positive and negative swings. As the investment landscape shifts, asset-liability studies will continue to be an important tool to ensure the investment strategy aligns with the Federation’s benefit obligations over the long term.

While investments are an important aspect of funding the pension plan, keep in mind that investment swings do not have a direct impact on your STRP monthly pension. As the Plan is designed for long-term stability, the health and funding of the Plan remain stable.