Defined Benefit Fund
The primary objective of the defined benefit portfolio is to secure the funds necessary to pay statutory benefits provided by OPERS. OPERS investment professionals manage the investments of member and employer contributions for Traditional Pension Plan members. They also manage the investment of employer contributions for Combined Plan members.
The OPERS Board of Trustees believes OPERS’ assets should be managed in a fashion that reflects OPERS’ unique liabilities, funding resources and portfolio size, by incorporating accepted investment theory and reliable, empirical evidence.
Specifically, OPERS has adopted the following principles:
- Asset allocation is the key determinant of return and, therefore, commitments to asset allocation ranges will be maintained through a disciplined rebalancing program.
- Diversification, both by and within asset classes, is the primary risk control element.
- The pursuit of returns in excess of risk-free alternatives entails the distinct probability of disappointing results over very short periods of time and, therefore, the assets will be invested with a long-term perspective.
- Passive alternatives (index funds) to actively managed portfolios are suitable investment strategies, especially in highly efficient markets.