DETROIT, July 25, 2016 /PRNewswire/ -- The Retirement Systems for the City of Detroit will reinvest approximately $130 million in City of Detroit pension funds from the proceeds of divesting their interest in the Pittsburgh, Pennsylvania-based Rivers Casino. Each pension fund will receive approximately $65 million from the divestiture.
"We're very pleased that the investment produced positive investment gains for all retirees," said General Retirement System (GRSD) Board Chairman Tom Sheehan. "The proceeds from the sale will allow us to make significant reinvestments across multiple classes to produce the best outcome and security for those dollars."
"This investment resulted in a positive gain for the pension systems," said Portia Roberson, Chair of the Police and Fire Board of Trustees. "With the sale proceeds, we are able to re-allocate significant assets across multiple investment classes instead of in a single real estate investment. This complies with the Investment Policy goal of a prudent, broadly diversified, institutional quality portfolio for the benefit of the Systems' retirees."
In 2012 the Retirement Systems also received approximately $92.4 million as repayment of a $54 million incremental investment made in 2010, driven by the financial challenges of the extended recession.
In April 2016, Rivers Casino agreed to acquire the Retirement Systems remaining interest in the Rivers Casino for a net purchase price of approximately $130 million subject to final documentation and financing market conditions.
The Retirement Systems' total investment was approximately $198 million. It will receive proceeds of approximately $227 million in aggregate over the life of the transaction.
About GRSD: The General Retirement System for the City of Detroit represents 4,881 active members, 12,026 retirees and 2,728 members who have retired but are not yet receiving benefits. The GRSD has more than $2.3 billion in assets. For more information, please visit rscd.org/grsd.
About PFRS: The Police and Fire pension fund represents some 3,500 active members and 8,500 retirees. The Police and Fire Retirement System has approximately $3.0 billion in assets and is managed by a 16-member Board of Trustees comprised of elected police and fire members, Ex-officio members appointed by the Mayor and retiree members elected by police and fire retirees respectively.
SOURCE General Retirement System for the City of Detroit