In response to concerns over the financial markets in recent days, the New York State Teachers Retirement System (TRS) posted the following update on its Web site Wednesday, Sep. 17:

Your Pension is Safe

(Sept. 17, 2008) – If the recent reports regarding the financial markets have you concerned, rest assured your NYSTRS retirement benefit is guaranteed and safe.

Funds used to pay your benefits come into the Retirement System through employer contributions, member contributions and investment income. NYSTRS invests the employer and member contributions throughout a member's working career and accumulates the assets necessary to provide a fully funded benefit in retirement. This method is called advance funding.

Because the Retirement System invests in a well-diversified portfolio, when one company or asset class underperforms, the stability of the other asset classes offset that negative performance. The System's Retirement Board, staff and outside consultants continually monitor our asset allocations and make adjustments as necessary.

So rest assured sufficient funds are on hand to pay promised benefits.