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  1. Hello everyone. I just recently found out about this Supplemental Annuity Collective Trust (SACT) that New Jersey offers. I wanted to start a discussion on this SACT. I am in the early stages of my research. I will share everything I have learned thus far. I am hoping some other people from New Jersey have experience or advice, or if anyone else has ever researched it or is interested in looking through the information. My ultimate goal is to see if it's worth investing in. Information is very limited online about the SACT and trying to track down the stocks they invest in is tough. Eligibility: Employees who are actively contributing members of one of the following state-administered retirement systems are eligible to participate in SACT Regular. Judicial Retirement System (JRS) Teachers’ Pension and Annuity Fund (TPAF) Public Employees’ Retirement System (PERS) Police and Firemen’s Retirement System (PFRS) State Police Retirement System (SPRS) {The SACT plan is a 403(b)} The SACT-Regular Plan allows contributions in whole percentages beginning at 1 percent of your base salary. The maximum contribution allowable falls under the $53,000 IRCAIS limits for 2016 (includes Pension 414(h) contributions). Lump-sum contributions of $50 or more are allowed in the third month of any calendar quarter. Although your contributions to the regular plan are "after tax contributions," your accumulated earnings are deferred from federal tax until you withdraw your money. "The Supplemental Annuity Collective Trust provides a variable annuity as opposed to the fixed annuity benefits of the State administered retirement systems. The fixed annuity benefits of these systems provide a guaranteed amount regardless of economic conditions and the performance of underlying investments. However, over time, inflation will erode at least a portion of the purchasing power of these fixed benefits. By supplementing your retirement system benefits with a variable annuity from the Trust, you have the potential to increase the amount of your retirement income through the appreciation of the underlying investments of the Trust" http://www.state.nj.us/treasury/pension ... handbk.pdf ( This link gives all the basic information on the SACT) The profits they list are in Unit Values. The last year they show is 2013. http://www.state.nj.us/treasury/deferred/sact.shtml July 2013 75.3337 June 2013 72.1644 May 2013 73.3738 April 2013 71.8395 March 2013 70.7088 February 2013 68.2962 January 2013 67.6088 December 2012 64.6331 November 2012 64.4278 October 2012 64.2862 September 2012 65.7004 August 2012 64.2602 July 2012 63.1320 June 2012 62.5365 May 2012 60.2980 April 2012 64.0390 March 2012 64.5729 February 2012 63.2730 January 2012 61.5859 December 2011 59.6947 November 2011 59.1500 October 2011 58.9901 September 2011 53.6614 August 2011 57.5872 July 2011 60.9810 June 2011 62.3742 May 2011 63.5929 April 2011 64.3139 March 2011 61.2140 February 2011 61.3458 January 2011 59.5480 December 2010 58.6890 November 2010 55.9697 October 2010 56.1529 September 2010 54.7458 August 2010 51.1929 July 2010 52.8842 June 2010 50.1476 May 2010 52.6003 April 2010 56.4044 March 2010 53.8407 February 2010 51.8363 January 2010 50.4984 December 2009 51.9323 November 2009 51.1409 October 2009 48.4146 September 2009 49.2613 August 2009 47.7934 July 2009 46.9180 June 2009 44.2856 May 2009 44.8538 April 2009 43.0230 March 2009 40.9865 February 2009 38.3128 January 2009 42.4718 December 2008 45.2130 November 2008 44.1957 October 2008 47.0543 September 2008 55.6247 August 2008 60.3652 July 2008 59.4224 June 2008 59.8911 May 2008 66.1912 April 2008 65.2104 March 2008 62.1107 February 2008 63.0920 January 2008 64.3912 Now here are some links I found wrote by Joel Frank in favor of SACT http://board.403bwise.com/index.php?showtopic=5716 http://board.403bwise.com/index.php?showtopic=5410 Now it seems like all fees for this are covered by the state. But KROW36 from here on Bogleheads questions that. viewtopic.php?t=179734 "I believe that although the fees of the SACT fund are not disclosed, they exist, and are subtracted from the unreported but calculable rate of return (ROR). Every mutual fund, or portfolio of mutual funds, has expenses. The SACT fund expenses are subtracted out of its returns before they report their "unit values". KROW36 also compared the SACT "I also found the Unit Values page for the Supplemental Annuity Collective Trust (SACT) but was hoping they provide the rate of return over the years. Maybe they aren’t all that proud of their ROR? I used the unit values for December for some recent years and calculated the ROR. For a comparison I used Vanguard’s LifeStrategy Moderate Growth which uses a 60/40 asset allocation and includes International stocks and bonds. I noticed that the unit values for 2013 were incomplete and 2014 was missing. -----------SACT ROR——LSMG ROR 2012————8.27%——— 11.76% 2011————1.71———— 0.26 2010————13.01——— 13.31 2009————14.86——— 20.33 2008———— -34.13—— -26.50 2007—————0.33——— 7.36 The SACT is very opaque, and doesn’t seem to outperform a diversified index fund portfolio." "I calculated a few more years of the ROR of the SACT fund and compared it to the ROR of the Vanguard Life Strategy Moderate Growth. SACT.------SACT ROR——LSMG ROR 2012——— 8.27%—— 11.76% 2011——— 1.71——— 0.26 2010——— 13.01—— 13.31 2009——— 14.86—— 20.33 2008********* -34.13***** -26.50 2007——— 0.33—— 7.36 2006——— 11.85—— 13.31 2005——— 4.35—— 5.69 2004——— 8.21—— 10.57 2003——— 23.56—— 22.40 2002******** -27.47** -10.32 2001******** -12.04** -4.48 I would steer clear of the SACT fund 403b because of The significant outperformance over time of the Vanguard fund over the SACT 403b" now when i googled SACT NJ STOCKS i finally found their investments http://www.nasdaq.com/quotes/institutio ... -nj-820828 http://www.octafinance.com/hedge-funds/ ... ust-of-nj/ a 2014 audit: http://www.state.nj.us/treasury/pension ... act-14.pdf sorry to throw so much information out there. I tried to organize all this information the best I could and give a good presentation. I am trying to figure out if the SACT is really worth it for me to invest in. I am opening a 457(b) plan with Valic (the best sponser my company offers) but I just found out about this SACT. Thank you all for reading and any information or advice you may have on the SACT of NJ
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