Massachusetts Teachers' Retirement System
| Massachusetts Teachers' Retirement System | |
 | |
| Basic facts | |
| Location: | Charlestown, Massachusetts |
| Top official: | Iraida J. Álvarez, chair |
| Year founded: | 1914 |
| Active members: | 101,286 |
| Website: | Official website |
| Total assets under management | |
| 2022: | $36,536,834,000 |
- See also: Public pensions in Massachusetts
The Massachusetts Teachers' Retirement System (MTRS) is a Massachusetts state pension fund that provides retirement, disability, and survivor benefits to the state's, public school teachers, administrators, and their families, excluding those in Boston. MTRS had $36,536,834,000 ($36.5 billion) in total assets under management as of January 1, 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 the Massachusetts Teachers' Retirement System.
- Pension performance overview: Overview of the funding level and assets managed by the Massachusetts Teachers' Retirement System.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with Massachusetts Teachers' Retirement System, 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 the Massachusetts Teachers' Retirement System's oversight board, including members and selection.
Background
- See also: Public pensions
The Massachusetts Teachers' Retirement System (MTRS), founded in 1914, is a sub-fund under the Pension Reserves Investment Trust (PRIT) which pools, invests, and reserves the assets of the Massachusetts State Employees' Retirement System and MTRS. MTRS operates as a defined benefit plan based on a formula established by Massachusetts state law. These plans—based on the employee's length of service and salary— provide retirement, disability, and survivor benefits to the state's public school teachers, administrators, and their families, excluding those in Boston.[1]
MTRS served over 101,286 active members and approximately 70,769 retirees and beneficiaries as of January 1, 2023.[1]
Pension performance overview
The following table features information about the funding level and assets managed by the Massachusetts Teachers' Retirement System as of January 1, 2023:[1]
| Massachusetts Teachers' Retirement System performance (January 1, 2023) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total assets[2] |
| 2023 | 58.7% | $25,749,365,000 | $36,536,834,000 |
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.[3][4]
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.”[5]
List of AMCs contracting with the Massachusetts Teachers' Retirement System
The Massachusetts Teachers' Retirement System (MTRS) is a sub-fund under the Pension Reserves Investment Trust (PRIT). PRIT invests MTRS' assets, as well as other retirement and benefit plans for the governmental workers of Massachusetts. MTRS does not contract with its own AMCs; the AMCs for PRIT account for all its sub-funds.
PRIT contracted with 175 asset management companies (AMCs) as of June 30, 2021. Of those companies or funds, 10 were investor participants in Climate Action 100+, and 14 were members of NZAM as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with PRIT:[6]
- 400 Capital Management
- Acadian Asset Management (NZAM, Climate Action 100+)
- Acon Investments
- Advent International
- Aeolus Capital Management Ltd
- AEW
- AFL - CIO Housing Investment
- Alchemy Partners
- Alta Communications
- American Industrial Partners
- American Securities
- Apollo Management Co.
- AQR Capital Management
- AQR Emerging
- Ascent Venture Partners
- Ashmore Investment Management (NZAM, Climate Action 100+)
- Austin Ventures
- Baillie Gifford (NZAM, Climate Action 100+)
- Bain Capital
- Basswood Capital Management, LLC
- Battery Ventures
- Berkshire Partners
- Blackrock Financial Management (NZAM, Climate Action 100+)
- Blackstone Capital Partners
- Brandywine Investment Management (NZAM, Climate Action 100+)
- Breakout Funds, LLC
- Bridgepoint Capital Limited
- Brigade Capital Management
- Brookfield Investment Management (NZAM)
- Cantab Capital Partners
- Canvas Capital
- Capula Investment Management
- Carlyle Partners
- Castille Ventures
- Catalyst Investors
- CBRE (NZAM)
- Centerbridge Capital
- CenterSquare Investment Mangement (Climate Action 100+)
- Charles River Ventures (Climate Action 100+)
- Charlesbank Capital Partners
- Charterhouse Capital Partners
- Chequers Partenaires
- Cirera Capital Ltd
- CKC Capital
- Community Capital Management
- Complus Asset Management Limited
- Contrarian Capital Management
- Cpyress Group
- CVC Capital
- Davidson Kempner Capital Management
- Denham Capital Management
- DLD Asset Management
- Driehaus Capital Management
- East Lodge Capital
- Eaton Vance
- El Dorado Ventures
- Elliot Management Corporation
- Elysian Capital
- Ethos Private Equity
- EW Healthcare Partners
- Exponent Private Equity Partners
- Fidelity Management Trust
- Fir Tree Partners
- First Reserve Corporation
- Flagship Pioneering
- Forest Investments Associates
- Frontier Capital Management
- Genstar Capital
- Georgian Partners
- Gilde Buy Out Partners
- Goldman Sachs Asset Management (Climate Action 100+)
- Gores Group
- GTCR Golder Rauner
- H.I.G. Capital
- Hellman & Friedman
- Highland Capital Partners
- Hony Capital
- Index Ventures
- Insight Partners (Climate Action 100+)
- Institutional Venture Partners
- InterWest Partners
- Invesco Realty Advisors (NZAM)
- Investcorp Investment Advisers
- JEN Partners
- JMI Equity
- Kelso & Company
- Kepha Partners
- Keytone Ventures
- Kohlberg Kravis Roberts & Co.
- KPS Capital Partners
- Land and Buildings Investment Management
- LaSalle Investment Management (NZAM)
- LMCG Serenitas
- Longfellow Investment Management
- Loomis, Sayles & Co., LP
- Lord, Abbett & Company
- Lowell Minnick Partners
- M/C Venture Partners
- Madison Dearborn Capital Partners
- Marathon-London
- Markel CATCo Investment Management
- Medicxi Ventures
- Menlo Ventures
- Mondrian Investment
- Montagu Private Equity
- Montreux Equity Partners
- Mudrick Capital Management
- Mygale
- Nautic Partners
- New Century Advisors
- New Enterprise Associates
- Nordic Capital
- Odyssey Investment Partners
- Olympus Growth Fund
- Onex Corporation
- PAAMCO
- PAI Partners
- Permira
- PGIM
- PIMCO
- Polaris Partners
- PRIM Board
- Providence Equity Partners
- Providence Strategic Growth
- Pugh Capital Management
- Pzena Investment Management, LLC (NZAM)
- Quad-C Management
- Quantum Energy Partners
- RBC Global Asset Management (Climate Action 100+)
- Rembrandt Venture Partners
- Rhone Group LLC
- Riverbridge Partners
- RV Capital Management
- SAIF Partners
- SCP Vitalife
- Shenkman Capital Management
- Sherbrooke Capital
- Sightway Capital
- Silver Creek Adivsory Partners
- Sofinnova Ventures, Inc.
- Spark Capital
- Spectrum Equity Partners
- State Street Global Advisors (NZAM)
- Stockbridge
- Stone Point Capital (NZAM)
- Summit Creek Advisors
- Summit Partners
- Summit Partners Public Asset Management, LLC
- SV Health Investors
- T. Rowe Price (NZAM)
- TA Associates
- Tabor Asset Management
- Technology Crossover Ventures
- Tenaska Capital Management
- The Campbell Group
- Thoma Bravo
- Thoma Cressey Partners
- Thomas H. Lee Partners
- Thompson Street Capital Partners
- TimeSquare Capital Management
- Torquest Partners
- TowerBrook Capital Partners
- TPG Capital
- Trident Capital
- Union Square Ventures
- VantagePoint Partners
- Vestar Capital Partners
- Vista Equity Managers (NZAM)
- Voya
- Wasatch
- Waterland Private Equity
- Weston Presidio Capital
- WestView Capital Partners
- Xenon Private Equity, LTD
- Xponance
Governance and accountability
This section features information about the seven-member board of trustees that oversees the Massachusetts Teachers' Retirement System (MTRS). The board is specific to oversight of MTRS and does not exercise oversight duties for other state funds.[7]
Board selection method
The board of trustees that oversees MTRS is made up of seven members. The board comprises the following members:
- the Massachusetts state treasurer or his or her designee
- the auditor of the Commonwealth of Massachusetts or his or her designee
- two members who are elected by the active and retired members of the system,
- one member—who must be a retired teacher—who is appointed by the governor,
- one member who is chosen by the vote of the other six, and
- the last member and the board’s chair is the Massachusetts commissioner of elementary and secondary education or his or her designee.[7]
Board of trustees membership
A seven-member board of trustees oversees the operation and administration of MTRS. The following individuals served on the board as of September 2024:[7]
- Iraida J. Álvarez, chair
- Deborah B. Goldberg
- Sarah G. Kim
- Diana DiZoglio
- Michael Leung-Tat
- Dennis J. Naughton
- Jacqueline A. Gorrie
- Richard L. Liston
- Anne Wass
Note: The MTRS Board statutorily comprises seven members, while the current board comprises nine. The current MTRS members include both the Commonwealth's Treasurer and their designee and the Commonwealth's Auditor and their designee, while the statute accounts for ex-officio positions or their designees.
See also
- Public pensions in Massachusetts
- 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 1.3 Massachusetts Teachers' Retirement System, "Massachusetts Teachers' Retirement System Actuarial Valuation January 1, 2023," September 4, 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
- ↑ 7.0 7.1 7.2 Massachusetts Teachers' Retirement System, "The Board," September 4, 2024
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