PERS and SBS investment funds

      Hello Mr. Palin,

  The following is the information I was given by the Division of Retirement and Benefits relating to the
  investments of the PERS and SBS employee funds. The Governor's PERS account is one account for all
  PERS services (both state and Wasilla), and as you know there are two SBS accounts, one for Wasilla
  service and one for state service.

  Info from Retirement & Benefits:

  "The Alaska Retirement Management Board (ARMB) is the fiduciary for the retirement systems
  of the State of Alaska. The ARMS directs the investment of the defined benefit systems of the
  State of Alaska, including the Public Employees' Retirement System (PERS). The ARMB also
  selects the investment options available to the participants of the various participant-directed
  plans of the State of Alaska, including the Supplemental Annuity Plan (SBS). The ARMB is
posed of nine trustees and utilizes independent consultants and other resources in making
  investment decisions.

  PERS is one of the defined benefit systems of the State of Alaska. The ARMB directs the
  investment of the assets of the system with the goal of meeting the benefit obligations to the
  participants. Participants do not direct the investment of the assets and they do not have direct
  access to the assets. The system is invested in a diversified fashion across several asset classes.

  The Supplemental Annuity Plan is a participant-directed supplemental retirement savings
  program for the State of Alaska. SBS participants have a range of investment options available
  to them across several asset classes. The ARMB selects the line-up of investment options and
  the default investment option. The current default investment option is the Alaska Long-Term
  Balanced Trust which was put in place in 2001. The prior default investment option was the
  Alaska Balanced Trust which started in 1996. Both of these balanced trusts are target-risk stock
  and bond balanced funds independently managed for the State of Alaska by T. Rowe Price.
  These trusts are low-cost, well-diversified, enhanced-index investment options which provide
  risk, return, and underlying investments that are similar to the segments of the market that they
  invest in. Participants in the SB S funds are informed of the top 10 holdings 15 days after the end
  of each quarter."

  Please let me know if you need any further information.


                                                                                             ROSTON 02926