Pension Protections and the LABF’s Investments
March 23, 2020 04:02 PM
Many members have recently contacted the LABF expressing concern about the recent downturn in the global financial markets and its impact on their pensions and the LABF investments. The status of the LABF’s investments will not affect the amount of your pension. The Illinois Supreme Court has held that your pension is guaranteed by the pension protection clause of the Illinois Constitution, regardless of the amount of money that exists in the LABF’s investments.
The COVID-19 outbreak has impacted financial markets worldwide. While the LABF’s investments are not immune from that impact, the LABF is a long-term investor that plans its investment in terms of decades, not weeks or months. The LABF’s investments are broadly diversified and are designed to withstand volatility and negative periods in the market. The LABF has sufficient resources to meet its benefit payment requirements and expects that, eventually, the global economy will recover.