Alabama pension fund drops 15 percent in FY08

MONTGOMERY, Ala. (AP) - The state pension funds for state employees and school workers lost more than 15 percent of their investments in the recently ended fiscal year.

The Retirement Systems of Alabama reported the losses for the fiscal year ending Sept. 30.

The loss was slightly larger than comparable funds.

The investment consulting firm Callan Associates surveyed 100 public funds nationwide and found the median loss was slightly less than 15 percent.

The chief executive of Alabama's pension programs, David Bronner, said that may be because Alabama had a larger share of corporate bonds, which didn't fare well, and a smaller share of U.S. Treasury bonds, which did well.

Bronner said the losses won't affect the pension of any state retirees because their benefits are guaranteed.

--- Information from: The Birmingham News, (Copyright 2008 by The Associated Press. All Rights Reserved.) AP-NY-12-11-08 1127EST