Account Growth

All contributions received by the Plan are invested on your behalf by independent, professional investment firms. Contributions earn interest from the time you make them. The Plan's average rate of return in the balanced fund since inception is 8.0%. The return for 2009 was 12.7%.(View rate of return history.)

Member contributions are pooled for investment. Funds are invested in a balanced portfolio of bonds, equities and short-term investments. This approach allows the Plan to maximize earnings while minimizing risk to members. Members can choose between a balanced fund or short-term fund for investments.

SPP allocates 100% of the market rate of return, less operating expenses, to members monthly.

SPP's Board of Trustees is committed to keeping operating expenses as low as possible. From 1992 to 2009, the expenses averaged 1% or less of the assets.

Since you start earning interest on your account immediately, over time, the compounding effect of interest will far exceed the value of your personal contributions. The table below projects your account balance over time with earnings compounded annually.

Account balance after contributing $1200/year for the number of years indicated Years of Contributing.
Earnings	10	20	30	40
6%	$16,292	$45,468	$97,716	$191,286
8%	$18,079	$57,112	$141,378	$323,303

Account balance after contributing $2500/year for the number of years indicated Years of Contributing.
Earnings	10	20	30	40
6%	$33,943	$94,725	$203,575	$398,513
8%	$37,665	$118,983	$294,538	$673,548