Public Safety Personnel Retirement System
State of Arizona
August 27, 2015
PRESS RELEASE
Contact: Christian Palmer
Phone: 602-486-1447
PSPRS veteran tapped to run $8 billion trust
Board Chairman: Smout ‘exemplary’ during uncertainty
PHOENIX – The state’s Public Safety Personnel Retirement System Board of Trustees appointed Jared Smout to lead the state’s multi-billion dollar trust that invests and provides retirement benefits to public safety employees, corrections officers, judges and elected officials.
Smout, who has served as interim system administrator since July 2014 and has served PSPRS for more than 18 years, was appointed on Aug. 26 by a vote of the seven-member board led by Chairman Brian Tobin.
Tobin, a veteran City of Phoenix firefighter, praised Smout’s performance and dedication displayed during an era marked by unjustified accusations against the system, legal uncertainty and the added diplomatic task of encouraging reforms aimed at providing financial stability to the trust.
“I think he’s done an exemplary job under very difficult circumstances,” Tobin said. “He has the experience, the education and the skills, and he will serve this state and its public safety employees well in this vitally important position.”
During his tenure as deputy system administrator and acting system administrator, Smout has continued to oversee PSPRS’ nationally recognized investment strategy that seeks steady returns coupled with resistance to market volatility.
“I deeply appreciate the Board’s confidence in allowing me to continue in this role. I absolutely love my job and am grateful every day for the opportunity to serve those who serve this state,” Smout said. “We have a lot to be proud of and we will continue to improve the system, our relationships and our ability to deliver long-term pension stability.”
The risk-averse strategy implemented by PSPRS seeks to diversify assets and reduce exposure to publicly-traded equities, the greatest driver of market fluctuations. The trust performed admirably in fiscal years 2013 and 2014, posting net gains of 11 percent and 13.3 percent, respectively, despite assuming far less risk than the vast majority of public pension plans.
Additionally, PSPRS is expected to outperform more than 80 percent of 66 comparably sized pension trusts for fiscal year 2015, a year marked by low returns for trusts with stock-heavy portfolios.
The PSPRS trust combined with the Corrections Officers Retirement Plan (CORP) and the Elected Officials Retirement Plan (EORP) is valued at roughly $8.3 billion and provides retirement, disability and survivor benefits to approximately 50,000 retired and active members.