Educational Retirement Board of New Mexico
| Educational Retirement Board of New Mexico | |
 | |
| Basic facts | |
| Location: | Santa Fe, New Mexico |
| Top official: | Russell Goff, chair |
| Year founded: | 1925 |
| Active members: | 61,503 |
| Website: | Official website |
| Total assets under management | |
| 2023: | $16.2 billion |
- See also: Public pensions in New Mexico
The Educational Retirement Board of New Mexico (ERB) is a New Mexico state pension fund that provides retirement, disability, and survivor benefits to the state's active and retired public school employees, employees of higher education institutions, and certain employees of state agencies working in educational programs. ERB had $16.2 billion in total assets under management as of June 30, 2023.[1]
The management of public pension funds can indicate support or opposition to environmental, social, and corporate governance (ESG) investment practices. ESG investing considers the extent to which corporations align with and promote certain non-financial standards, such as net carbon emission or corporate board diversity goals. States typically hire asset management companies (AMCs) to direct pension plan investments, some of which have ESG commitments that guide their strategies.
This article features the following sections:
- Background: Information about the structure and functions of ERB.
- Pension performance overview: Overview of the funding level and assets managed by ERB.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with ERB, including a list of contracting AMCs that are participants in the Net Zero Asset Managers Initiative and the Climate Action 100+ initiative.
- Governance and accountability: Details about ERB's oversight board, including members and selection.
Background
- See also: Public pensions
The Educational Retirement Board of New Mexico (ERB), founded in 1925, invests the assets of and provides funding for the retirement of the state’s active and retired public school employees, employees of higher education institutions, and certain employees of state agencies working in educational programs. ERB operates as a defined benefit plan.[2][3]
ERB served over 61,503 active members and approximately 54,774 retirees and beneficiaries as of June 2023.[2]
Pension performance overview
The following table features information about the funding level and assets managed by the Educational Retirement Board of New Mexico as of June 30, 2023:[1]
| Educational Retirement Board of New Mexico pension performance (June 30, 2023) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total assets[4] |
| 2023 | 62.9% | $9.6 billion | $16.2 billion |
Assets and asset management
| Environmental, social, and corporate governance |
|---|
|
| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Asset management companies (AMCs) are hired to manage asset investment for state pension funds across all 50 states.
As of October 2024, 330 AMCs were members of the Net Zero Asset Managers Initiative (NZAM), and 391 AMCs were investor participants in the Climate Action 100+ initiative. Both international asset manager initiatives aimed to align the investment decisions of signatories with the goal of achieving net zero greenhouse gas emissions by 2050.[5][6]
NZAM announced on January 13, 2025, that it was suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it would reevaluate its plans and operations in light of “[r]ecent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions.”[7]
List of AMCs contracting with the Educational Retirement Board of New Mexico
The Educational Retirement Board of New Mexico (ERB) contracted with 64 asset management companies (AMCs) or specific funds as of August 26, 2022. Of those companies, six were investor participants in Climate Action 100+, and six were members of NZAM, as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with ERB:[8]
- AE Industrial Partners Aerospace
- Agriculture Composite
- Beachpoint Combined
- Black Forest
- BlackRock MSCI EAFE (NZAM, Climate Action 100+)
- BPC Tactical Fund LP
- Bridgewater All Weather
- Bridgewater Pure Alpha
- Brookfield (NZAM)
- Cash
- Cloverlay Solutions (Bravo)
- Cross Ocean ESS II
- Cross Ocean USD ESS III
- Cross Ocean USD ESS IV FD
- EIG Energy Fund XVII
- EMSO
- Energy
- Global Alpha International Small Cap
- GoldenTree Combined
- Gramercy Distressed Opp II (NZAM)
- Gramercy Distressed Opp III (NZAM)
- GSO Capital Opp III
- Harvest Fund (Climate Action 100+)
- ICE Canyon
- Infrastructure
- International Infrastructure
- Kildare European Partners I LP
- Kildare European Partners II LP
- Liquid Reserves Fund
- Lone Star IX
- Lone Star VIII
- Lone Star X
- Longford Capital Fund III, LP
- Marathon European Credit Opportunity II
- Medley Capital
- Mitigation Banking
- Neuberger Berman Emerging Markets (NZAM, Climate Action 100+)
- NM ERB Cash
- OHA Strategic Credit II
- OLEA SPECIAL OPPS OFFSHORE I
- OLEA SPECIAL OPPS OFFSHORE I
- Orbimed Royalty Credit Opp III
- Orchard Liquid Credit Fund
- OWS CREDIT OPPORTUNITY FD
- PanAgora
- PIMCO All Asset All Authority
- PIMCO Corp Opps Fund III
- Private Equity Composite
- Prudential
- RBC GAM EME Fund (Climate Action 100+)
- RCP II N Strategic Credit
- Riverstone Credit Partners II
- S&P 400 Mid-Cap
- S&P 500 Index Fund
- Sutherland Asset Management
- TAIGA SPECIAL OPP DAC LP
- The 1609 Fund LTD.
- The Varde Fund XIII, L.P.
- Timber Composite
- U.S. Private Real Estate
- UBS Emerging Markets EQ OPP (NZAM, Climate Action 100+)
- Water Property Investor, L.P. (Climate Action 100+)
- Waterfall - Eden
- Waterfall - Victoria
Governance and accountability
This section features information about the nine-member board of trustees that oversees the Educational Retirement Board of New Mexico (ERB). The board is specific to oversight of ERB and does not exercise oversight duties for other state funds.[9]
Board selection method
The board of trustees that oversees ERB is made up of nine members. The board is composed of one member to be elected for a term of four years by members of the New Mexico Association of Educational Retirees; one member to be elected for a term of four years by the members of the National Education Association of New Mexico; the secretary of education or a qualified designee; the state treasurer or a qualified designee; one member to be elected for a term of four years by the New Mexico members of the American Association of University Professors; two members to be appointed by the governor for terms of four years each, with a background in finance or pension fund administration; one member to be elected for a term of four years by the members of the American federation of teachers New Mexico; and the secretary of higher education or a qualified designee.[9][10]
Board of trustees membership
A nine-member board of trustees oversees the operation and administration of ERB. The following individuals served on the board as of May 2024:[9]
- Russell Goff, chair
- Mary Lou Cameron, vice chair
- Larry Magid, secretary
- Max Baca
- Laura M. Montoya
- Antonio Ortiz, designee
- Stephanie M. Rodriguez, cabinet secretary
- Donald Duszynski
- Matías Fontenla
See also
- Public pensions in New Mexico
- Environmental, social, and corporate governance (ESG)
- Arguments about environmental, social, and corporate governance (ESG)
- Opposition to environmental, social, and corporate governance (ESG) investing
- Reform proposals related to environmental, social, and corporate governance (ESG)
- State legislative approaches opposing ESG investing
- State legislative approaches supporting ESG investing
External links
Footnotes
- ↑ 1.0 1.1 [https://www.erb.nm.gov/wp-content/uploads/2023/12/2023-Actuarial-Valuation-Report.pdf Educational Retirement Board of New Mexico, “Educational Retirement Board of New Mexico Actuarial Valuation Report As of June 30, 2023,” May 14, 2024]
- ↑ 2.0 2.1 Educational Retirement Board of New Mexico, “ERB Plan,” May 14, 2024
- ↑ Educational Retirement Board of New Mexico, “NMERB History,” May 14, 2024
- ↑ Note: By default, this refers to the actuarial valuation of total assets. In some cases, the total market value of assets is shown instead. See the cited source for details.
- ↑ The Net Zero Asset Managers Initiative, "The Net Zero Asset Managers Initiative," accessed January 26, 2023
- ↑ Climate Action 100+, "The Three Goals," accessed June 20, 2023
- ↑ Pensions and Investments, "Net Zero Asset Managers initiative to suspend activities in wake of BlackRock departure," accessed January 15, 2024
- ↑ Ballotpedia, "Ballotpedia: Asset management data for state-administered pension funds across the 50 states," March 2023
- ↑ 9.0 9.1 9.2 Educational Retirement Board of New Mexico, “Board,” May 14, 2024
- ↑ Justia US Law, “NM Stat § 22-11-3 (2021),” May 14, 2024
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