Ever Wonder Why ATRS Invests Your Retirement Funds?
It’s a question I hear from time to time, and it’s a good one. After all, contributions have already come out of your paycheck, so why is that not enough?
The short answer is this: your contributions alone aren’t enough to fund a lifetime of retirement benefits. That’s why modern pension systems — including ATRS — are built on three key sources of income:
- What you contribute,
- What your employer contributes, and
- The investment returns we earn over time.
Here’s how it works: While you’re working, those contributions are invested to grow the fund. That way, when you retire, there’s enough money to pay you every month — for life.
Let me put it in perspective. Most ATRS members who retire with a straight annuity get back everything they personally contributed after about 3 years. By year 6, they’ve also received their share of the employer’s contributions.
But retirement usually lasts a lot longer than that — often 20 years or more. I’ve even talked to ATRS members who have been retired for more than 40 years. So where does the money come from after year 6? That’s where our investments step in. They fill the gap and keep your benefits flowing.
And here’s the best part: your monthly benefit is guaranteed for life, and it can never go down. That’s the value of ATRS. And that’s why investing is so important.
We don’t chase quick wins. Our investment strategy is built for the long haul — focused on steady growth and protecting the fund’s stability. Every decision made by the ATRS Board of Trustees is grounded in one goal: to protect and preserve your benefits for every year of your retirement, whether your retirement lasts 20, 30, or even 40 years.
Medicare Open Enrollment
If you are a retired ATRS member and you receive your healthcare coverage through the state, please know that Open Enrollment ends November 30. If you want to change your ARBenefits health insurance plan, most changes must be made during the Open Enrollment period by November 30. If you are satisfied with your plan or don't want to change, you don't need to do anything.
For assistance with your healthcare options or to make a change, please contact the state’s Employee Benefits Division by calling (877) 815-1017 or emailing ask.ebd@arkansas.gov, or go to their website at https://sas.arkansas.gov/employee-benefits/open-enrollment-resources-retirees/. Although we at ATRS can’t assist with Health Insurance or Medicare issues, we are happy to connect you with the folks at EBD who can.
Annual Statements
If you are a vested member who worked and earned service credit with ATRS during the last school year, and you have not yet retired, you should have already received your ATRS Annual Statement in the mail. If not, please email us at info@artrs.gov.
You can access an electronic copy of your Annual Statement by logging into the Member Portal on our website. Once you log in, click on “Member Portal” in the sidebar, then click on “Annual Statement,” and then click the button on the screen that says, “View Annual Statement.”
If you don’t have an account in our Member Portal, you can register for it at this link: https://www.artrs.gov/registration
Tax Deductions for College Savings
Are you looking for holiday gift ideas? Consider a gift that lasts far beyond the season: a contribution to a child or grandchild’s future education through the Arkansas Brighter Future 529 Plan.
These accounts offer tax-free savings and investment to pay educational expenses for college, graduate school, vocational and trade school, or apprenticeships. And when you contribute to a 529 plan, you can deduct up to $5,000 (or up to $10,000 for a married couple) from your Arkansas state income taxes.
The tax year is almost over, but you still have time to set up an Arkansas Brighter Future 529 Plan and make a deductible contribution. For more information or to get started, click on this link: https://brighterfuturedirect529.com/home/why-529.html
As ATRS Executive Director, it is my privilege to serve on the Section 529 Plan Review Committee which oversees this wonderful program. And the Plan is administered by State Treasurer John Thurston, who also serves on our ATRS Board of Trustees.
Next week, we will be expressing gratitude for all our blessings as we celebrate Thanksgiving. ATRS staff will be in the office and available to take your calls and emails Monday through Wednesday. Our office, as with other state offices, will be closed on Thursday the 27th and Friday the 28th. I hope you and your families have a wonderful and restful holiday week.
Mark White
Executive Director, ATRS
MarkW@artrs.gov
Office: (501) 621-8853
Cell: (501) 541-2057