The Social Security Trust Funds' long-term outlook has improved since last year, thanks to the nation's strong economy, according to the 1998 annual report by the trustees. The latest report projects the trust funds will begin paying out more in benefits than it takes in 2013, a year later than predicted in last year's report, and will be exhausted in 2032 - three years later than last year's projection. At that time, money flowing into the funds will cover only about three-fourths of promised benefits.
Duluth (Minn.) Teachers' Retirement Fund Association is nearing the end of a search for an enhanced index fund manager, said Jay Stoffel, executive secretary for the fund. The fund's consultant will present 10 finalists to the board early next month, he said.
Fund officials haven't decided for sure whether they will hire any of the managers, Mr. Stoffel said. They would first like to see what kind of managers are out there, he said. Therefore, he couldn't say how much the fund would invest in enhanced indexing, or where funding would come from.
The firm that may be hired would be used for both the $230 million defined benefit plan and the $40 million 403(b) plan, he said.
If the board goes ahead with the hiring, the search probably will be narrowed to three firms for presentations in June. He said fund officials are leaning toward using an enhanced index type of strategy popularized by PIMCO, which combines fixed-income securities with stock index futures. Jeffrey Slocum & Associates is assisting.