Study Shows Oil and Gas Critical to State Pensions

A new Sonecon study released by API shows oil and natural gas holdings are key to the performance of New Mexico’s public pension funds. State pension fund investments in oil and natural gas companies are providing strong returns for teachers, firefighters, police officers, and other public pension retirees in states across the country. Study results were based on New Mexico’s largest public pension funds: Public Employees Retirement Association of New Mexico (PERA) and the State of New Mexico Educational Retirement Board. Returns on oil and natural gas assets in these funds averaged 41 cents for each dollar invested compared to just 2 cents for other assets in these funds from 2005 to 2009.
During good economic times – or challenging ones – oil and natural gas investments far outperformed other public pension holdings in the state. While oil and natural gas stocks made up an average of 4.5 percent of holdings in New Mexico’s public pension funds, they accounted for an average of 14.7 percent of the returns in these funds, according to the Sonecon study. Click Here to Download New Mexico Report and read rest of story here: News New Mexico



Anonymous said...

Why isn't the media and consultants telling the stupid left-wing environmentalist politicians in our state that unless we start cranking up the oil and gas business in New Mexico we'll default on the pension plans that were promised? Raising taxes isn't a solution.

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