The collapse of Lehman Brothers could hit the Florida pension programs.
The State Board of Administration manages the pension fund for state and county employees and assets in more than two dozen other funds, including the Florida Hurricane Catastrophe Fund and Florida Prepaid College Plan.
The SBA holds more than $2.6 billion in the stocks and bonds of Lehman Brothers, which filed for bankruptcy protection Monday, Merrill Lynch, Bank of America, AIG and Washington Mutual. The SBA’s biggest losses — on paper for the time being — are in the stocks holdings, totaling nearly $700 million.
More than two-thirds of the Lehman-related stock and bonds managed by the SBA are held by the Florida Retirement System and the rest is mainly in the hurricane catastrophe fund and the Lawton Chiles Endowment Fund, which helps fund Medicare.
And I will be fully vested in FRS in a month. What timing.