March 28, 2024 |City of Lynn, City Services, From the Mayor, News

Lynn Retirement system assets valued at all-time high

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The Lynn Retirement Board has received the final Actuarial Valuation Report issued by the state actuary, John Boorack, for the Lynn Retirement system. The report, conducted by the state pension oversight agency, PERAC (Public Employee Retirement Administration Commission), identified the system’s total assets and liabilities for the period of January 1, 2021 through January 1, 2023. This report is considered to be a recognized indicator of the Lynn Retirement system’s financial status.       

According to the report, Lynn’s retirement total actuarial value of assets reached an all-time high of $517.2 million. This amount represents an $89.7 million increase from the $427.5 million reported in its last valuation on January 1, 2021. At the same time, the system’s liabilities were reported as increasing by $58.2 million. Valuation reports are required every two years to monitor the funding level of Massachusetts public pension systems.

This report indicates the Lynn funding level has grown by 7 percent from the last valuation to its highest funded level of approximately two-thirds of full funding. Lynn is funding its pension costs over the next nine years and scheduled to be 100 percent funded in 2033.

Full funding, or 100% funded, occurs when Lynn’s total assets on hand reach a level of being able to pay all current and future costs of retiree benefits as well as total costs of anticipated benefits of all employees contributing to the plan. Currently there are 1,197 retirees and 1,717 active employees in the Lynn Retirement system.

Retirement board members received more good news from their investment manager, the Public Retirement Investment Management Board (PRIM). The investment manager’s end-of year statement informed the board that Lynn assets had increased by 11.2 percent in 2023, reaching its all-time highest market value of $521.6 million. This increase represents a $33 million gain from last year.

“This Valuation Report is great news for our members and the taxpayers of Lynn,” said Lynn Retirement Board chairman Michael Marks. “At the same time, it was followed by a strong year of investment earnings for 2023, bringing our assets to more than a half-billion dollars. Hopefully, we will continue with another positive market return in 2024.”

“We are very pleased to see this type of performance from our Retirement Board,” said Mayor Jared C. Nicholson. “We place a priority on meeting our financial obligations to all current and future City retirees and this report is an extremely positive indicator.”

The City of Lynn Retirement system is governed by an independent 5-member Retirement Board that is comprised of mayoral appointees, elected members and one internal appointment. PERAC and PRIM are the pension oversight agency and investment arm, respectively, of most of the Massachusetts public retirement system.

The above press release was submitted to us by Mayor Nicholson’s office.