Arkansas Public Employees Retirement System posts 8.83% annual return on investments

The Arkansas Public Employees Retirement System's investments gained about $648 million in value, to $10.69 billion, in the fiscal year that ended June 30, an investment consultant told the system's board of trustees Wednesday. The consultant, Callan, reported that the system's investment return of 8.83% in fiscal 2023 ranked among the top 59% of the nation's public pension systems.

By: Michael R. Wickline
Arkansas Democrat-Gazette

The Arkansas Public Employees Retirement System's investments gained about $648 million in value, to $10.69 billion, in the fiscal year that ended June 30, an investment consultant told the system's board of trustees on Wednesday.

The consultant, Callan, reported that the system's investment return of 8.83% in fiscal 2023 ranked among the top 59% of the nation's public pension systems.

Carlos Borromeo, the system's deputy director of investments and finance, told the trustees that "we performed pretty well" in fiscal 2023, given that the system didn't have any private equity investments. The system's target investment return is 7% a year.

On Aug. 31, the system's investments were valued at $10.63 billion, he said.

Trustee Larry Walther, who is the state treasurer, told his fellow trustees that "we have done a good job of generating returns over the long haul."

The system's average investment return over the past 10 years is 7.78% a year, which ranks among the top 39% of the nation's public pension systems, according to Callan.

Also on Wednesday, the system's trustees voted to set a minimum rate of 15.32% of employee payroll to charge state and local government employers participating in the system in fiscal 2026.

That minimum is what the system currently charges employers. Trustees will formally set the rate for fiscal 2026 at their next scheduled meeting, in November.

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