Illinois State Employees' Retirement System
| Illinois State Employees' Retirement System (SERS) | |
 | |
| Basic facts | |
| Location: | Springfield, Illinois |
| Top official: | Susana A. Mendoza, chairperson |
| Year founded: | 1944 |
| Active members: | 61,651 |
| Website: | Official website |
| Total assets under management | |
| 2023: | $24,072,128,842 |
- See also: Public pensions in Illinois
The State Employees' Retirement System (SERS) is a Illinois state pension fund that provides retirement, disability, and survivor benefits to the state's public employees, excluding those who are active in reciprocal plan state retirement plans, among other exceptions. SERS had $24,072,128,842 ($24 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 SERS.
- Pension performance overview: Overview of the funding level and assets managed by SERS.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with SERS, 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 SERS's oversight board, including members and selection.
Background
- See also: Public pensions
The State Employees' Retirement System (SERS), founded in 1944, invests the assets of and provides funding for the state's public employees, excluding those active in reciprocal plan state retirement plans, among other exceptions. SERS operated as a defined benefit plan as of June 2024.[2]
SERS served over 61,651 active members and approximately 78,036 retirees and beneficiaries as of June 30, 2023.[2][1]
Pension performance overview
The following table features information about the funding level and assets managed by the State Employees' Retirement System as of June 30, 2023:[1]
| State Employees' Retirement System pension performance (June 30, 2023) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total assets[3] |
| 2023 | 44.65% | $29,836,389,849 | $24,072,128,842 |
Assets and asset management
| Environmental, social, and corporate governance |
|---|
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| • 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.[4][5]
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.”[6]
List of AMCs contracting with the State Employees' Retirement System
The State Employees' Retirement System (SERS) contracted with 117 asset management companies (AMCs) or specific funds as of June 30, 2021. Of those companies, 18 were investor participants in Climate Action 100+, and 12 were members of NZAM, as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with SERS:[7]
- ADAMS FUND SERIES LLC - OWNERSHIP SERIES
- ADVENT INTERNATIONAL GPE VI-A
- AKO EUROPEAN LONG - CLASS A1 SHARES
- AKO EUROPEAN LONG-ONLY PARTNERS LP (Climate Action 100+)
- AMERICAN SECURITIES PARTNERS VIII LP (Climate Action 100+)
- AMULET CAPITAL FUND II LP (Climate Action 100+)
- BANNEKER PARTNERS FUND I LP
- BLACKROCK EM GLBL DIV IDX FD C (NZAM)
- BLACKROCK EMERGING MKTS SMALL CAP EQ (NZAM)
- BLACKROCK MSCI EMERGING MARKETS FREE (NZAM)
- BLACKROCK MSCI USA MINIMUM VOLATILITY (NZAM)
- BLACKROCK MSCI USA MOMENTUM INDEX RSL (NZAM)
- BLACKROCK MSCI USA QUALITY INDEX RSL (NZAM)
- BLACKROCK MSCI USA VALUE WEIGHTED INDEX (NZAM)
- BLACKROCK MSCI WORLD EX USA INDEX FUN (NZAM, Climate Action 100+)
- BLACKROCK MSCI WORLD EX USA SMALL CA (NZAM, Climate Action 100+)
- BLACKROCK US TREASURY INFLATION-LINKE (NZAM, Climate Action 100+)
- BLACKSTONE CAP PTRS VI (Climate Action 100+)
- BLACKSTONE CAPITAL PARTNERS V-AC LP (Climate Action 100+)
- BLACKSTONE CAPITAL PARTNERS VIII (Climate Action 100+)
- BOSTON MILLENNIA PTRS II (Climate Action 100+)
- BVIP FUND VIII LP (Climate Action 100+)
- C-KY Container Investment LP Interest (Climate Action 100+)
- CANTILLON GLOBAL EQUITY LP (Climate Action 100+)
- CLEARLAKE CAPITAL PARTNERS III LP
- CLEARLAKE CAPITAL PARTNERS IV LP
- CLEARLAKE CAPITAL PARTNERS V LP
- CLEARLAKE CAPITAL PARTNERS VI LP
- COATUE LONG ONLY PARTNERS LP
- CORNELL CAPITAL PARTNERS LP
- COURT SQUARE CAPITAL PARTNERS II
- COURT SQUARE CAPITAL PARTNERS III
- DIGITAL ALPHA FUND II LP
- DURABLE CAPITAL ONSHORE FUND LP
- EGERTON INVESTMENT PARTNERS
- FERNBRIDGE CAPITAL ONSHORE FUND LP
- FRANKLIN PARK INTERNATIONAL FUND
- FRANKLIN PARK VENTURE FUND SERIES
- GEORGETOWN EQUITY ALTERNATIVES FUND LLC
- GEORGETOWN OPPORTUNISTIC FUND SERIES LLC
- GQG PARTNERS EMERGING MARKETS EQUITY
- GRIDIRON CAPITAL FUND IV LP
- HAMILTON LANE VENTURE CAPITAL FUND SERIES
- HILLHOUSE CHINA VALUE FEEDER, LTD. CL A
- HILLHOUSE CHINA VALUE FUND LP (Climate Action 100+)
- HOPEWELL VENTURES
- Insight Partners
- INSIGHT PARTNERS FUND X FOLLOW-ON FUND
- INSIGHT PARTNERS XI LP
- INSIGHT VENTURE PARTNERS X LP
- INTERWEST PARTNERS VIII
- ISBI US TREASURY U/A
- JFL EQUITY INVESTORS IV LP
- JFL EQUITY INVESTORS V LP
- K4 Private Investors
- KALORAMA SEPARATE ACCOUNT TIGER GLOBAL
- KALORAMA SEPRATE ACCOUNT ICHICGO SEGREGATED
- KELSO INVESTMENT ASSOCIATES X LP
- KKR CARDINAL CREDIT OPPORTUNITIES FUND
- KPS SPECIAL SITUATIONS FUND III LP
- KPS SPECIAL SITUATIONS FUND IV LP
- KPS SPECIAL SITUATIONS FUND V LP
- LANCASTER EUROPEAN EQUITY, LP
- LEVINE LEICHTMAN CAPITAL PARTNERS V LP
- MADISON DEARBORN CAP PTRS IV
- MADISON DEARBORN CAP PTRS V
- MADISON DEARBORN CAPITAL PARTNERS VI
- MIDDLEGROUND MOBILITY OPPORTUNITY FUND
- NEPTUNE CO-INVEST LP
- NEWVIEW CAPITAL FUND II LP
- Oak HC/FT Partners IV L.P.
- ODYSSEY INVESTMENT PARTNERS FUND V
- PARVUS EUROPEAN OPP FUND
- PCPRE-US IVD AGGREGATOR LP (Climate Action 100+)
- PLATINUM EQUITY CAPITAL PARTNERS IV LP (Climate Action 100+)
- PLATINUM EQUITY CAPITAL PARTNERS V LP (Climate Action 100+)
- POST ROAD SPECIAL OPPORTUNITY FUND II LP
- PRAESIDIUM STRATEGIC OPPORTUNITIES FUND
- PRINCETON EQUITY PARTNERS I LP
- RIVERSIDE CAPITAL APPRECIATION FUND V
- RIVERSIDE FUND IV
- RIVERSIDE FUND V LP
- ROARK CAPITAL PARTNERS V (T) LP
- RUSSEL MIDCAP INDEX FUND C
- S KY PROTON LP
- S&P SMALL CAP 600 EQUITY INDEX FUND C
- SCP PRIVATE EQUITY PTRS II
- SEVENTH CINVEN FUND NO.
- SILCHESTER INTERNATIONAL VALUE EQUITY
- STERLING CAPITAL PARTNERS III LP
- SUMMIT PARTNERS PRIVATE EQUITY FUND
- SUMMIT VENTURES VI-A
- TA XI LP
- TCV XI LP
- THE CHILDREN’S INVNT FD CL D1
- THE CHILDRENS INVNT FD CL H1
- THE WINDACRE PART INTL FD LTD CL
- THINK INDIA OPPORTUNITIES FUND, LP, LP
- THOMA BRAVO DISCOVER FUND III LP
- THOMAS H. LEE EQUITY FUND VIII LP (Climate Action 100+)
- TL VENTURES V (Climate Action 100+)
- TPG TECH ADJACENCIES LP (Climate Action 100+)
- US DEBT INDEX FUND C (Climate Action 100+)
- VALOR EQUITY PARTNERS III LP (Climate Action 100+)
- VISTA EQUITY PARTNERS FUND VII LP (NZAM, Climate Action 100+)
- VISTA EQUITY PARTNERS V LP (NZAM, Climate Action 100+)
- WARBURG PINCUS EQUITY PARTNERS
- WARBURG PINCUS PRIVATE EQUITY IX
- WARBURG PINCUS PRIVATE EQUITY VIII
- WARBURG PINCUS PRIVATE EQUITY X
- WAUD CAPITAL PARTNERS QP V LP
- WELSH CARSON ANDERSON & STOWE XI
- WHITESPRUCE FUND LP
- WICKS CAPITAL PARTNERS IV LP
- WILLIAM BLAIR EMERGING MARKETS SMALL
- WIND POINT PARTNERS V
- ZMC III LP
Governance and accountability
This section features information about the 13-member board of trustees that oversees the State Employees' Retirement System (SERS). The board is specific to overseeing SERS and does not exercise oversight duties for other state funds. The Illinois State Board of Investment provides additional oversight to SERS, among other state retirement systems.[8][9]
Board selection method
The board of trustees that oversees SERS is made up of 13 members. The board comprises 13 members, including the Illinois Comptroller, six trustees appointed by the Governor, four active trustees elected by the SERS members, and two retired trustees elected by SERS retirees.[8]
Board of trustees membership
A 13-member board of trustees oversees the operation and administration of SERS. The following individuals served on the board as of June 2024:[8]
- Susana A. Mendoza, chairperson
- Arnold Black, vice chairperson
- Danny Silverthorn
- Jameson Ramirez
- Ray Koenig III
- Melverta Wilkins
- Mohamad Nasir
- Mona Naser
- Jeremy Hawk
- Jack Matthews
- John Tilden
- Barbara J.C. Baird
- vacant
See also
- Public pensions in Illinois
- 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 1.2 State Retirement Systems of Illinois, “State Employees' Retirement System of Illinois Annual Actuarial Valuation as of June 30, 2023,” June 19, 2024
- ↑ 2.0 2.1 Center for Retirement Research at Boston College, “LEGACY PENSION DEBT REPORT: ILLINOIS STATE EMPLOYEES RETIREMENT SYSTEM,” June 19, 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
- ↑ 8.0 8.1 8.2 Illinois State Retirement System, “Board of Trustees,” June 20, 2024
- ↑ Illinois State Board of Investment, “Board,” June 20, 2024
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