Michigan Municipal Employees Retirement System

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Michigan Municipal Employees Retirement System
Basic facts
Location:	Lansing, Michigan
Top official:	Keith Van Beek, chairperson
Year founded:	1948
Active members:	30,438
Website:	Official website
Total assets under management
2022:	$12,711,000,000

See also: Public pensions in Michigan

The Michigan Municipal Employees Retirement System (MERS) is a Michigan state pension fund that provides retirement, disability, and survivor benefits to the state's municipal employees and their families. The Michigan Municipal Employees Retirement System had $12,711,000,000 ($12.7 billion) in total assets under management as of December 31, 2022.

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 Michigan Municipal Employees Retirement System.
• Pension performance overview: Overview of the funding level and assets managed by the Michigan Municipal Employees Retirement System.
• Assets and asset management: Information about the asset management companies (AMCs) that contract with Michigan Municipal Employees 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 Michigan Municipal Employees Retirement System's oversight board, including members and selection.

Background

See also: Public pensions

The Michigan Municipal Employees Retirement System (MERS), founded in 1948, operates as a defined benefit plan based on a formula established by Michigan state law. These plans—based on the employee's length of service and salary— provide retirement, disability, and survivor benefits to the state's municipal employees and their families.

MERS served over 30,438 active members and approximately 45,839 retirees and beneficiaries as of December 31, 2022.

Pension performance overview

The following table features information about the funding level and assets managed by the Michigan Municipal Employees Retirement System as of December 31, 2022:

Michigan Municipal Employees Retirement System performance (December 31, 2022)
Fiscal year	Percent funded	Unfunded liabilities	Total assets
2022	72.5%*	$4,821,803,460**	$12,711,000,000

*The funded ratio was calculated by dividing the total actuarial value of assets by the total liability listed on page 59 of the report.

**The unfunded liabilities were calculated by subtracting the actuarial value of assets from the total liabilities value listed on page 59 of the report.

Assets and asset management

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.

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.”

List of AMCs contracting with the Michigan Municipal Employees Retirement System

The Michigan Municipal Employees Retirement System (MERS) contracted with 72 asset management companies (AMCs) as of November 30, 2022. Of those companies or funds, five were investor participants in Climate Action 100+, and four were members of NZAM as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with MERS:

• 10T Capital (Climate Action 100+)
• Acadian Asset Management Inc. (NZAM)
• ACP Peru
• Alpine Lake Capital Partners, LLC (Barings LLC) (Climate Action 100+)
• AlpInvest Partners
• Altaris Capital Partners
• Angelo Gordon & Co.
• Aperia Technologies
• Appian Natural Resources (Climate Action 100+)
• Arlington Capital Partners
• Asterion Industrial Partners
• Bentall GreenOak
• Blackstone Alternative Asset Management, LP
• Blackstone Real Estate Partners
• Brookwood U.S. Real Estate
• Calysta, Inc.
• Colony Capital, LLC
• Comvest Partners
• Consilium Investment Management
• Domain Capital Advisors
• Electrum Group, LLC
• Exeter Property Group, LLC
• Fortress Investment Group, LLC
• Frontier Market Asset Management, LLC
• Gerchen Keller Capital, LLC (Burford Capital)
• Goldman Sachs (Climate Action 100+)
• Grantham, Mayo, Van Otterloo & Co., LLC
• Grosvenor Capital Management, LP
• H/2 Capital Partners
• Hancock Natural Resource Group, Inc.
• Harbert Management Corporation
• Hunter Point Capital
• IL&FS Capital Advisors Limited
• Influence Media Partners
• Ionetix Corporation
• J.P. Morgan Asset Management (NZAM)
• Keen Growth Capital
• Kennedy Capital Management
• LaSalle Investment Management (NZAM)
• Lead Edge Capital Management, LLC
• Lumira Capital
• MC Credit Partners, LP
• Merrowie Property Trust
• Metropolitan Real Estate
• Michigan eLab Capital Partners, LP
• MiddleGround Capital
• Miravast Asset Management, LLC
• Mubadala Capital
• Napier Park Global Capital
• Nu-Tek Food Science (Climate Action 100+)
• Oak Hill Advisors, LP
• Oak Street Real Estate Capital, LLC
• Oberland Capital Management, LLC
• Orchard Global Asset Management
• Parametric Portfolio Associates
• Petrichor Healthcare Capital Mgt, LP
• Pioneer Asset Management SA
• Polunin Capital Partners
• Punch & Associates
• Rialto Capital Management
• Sculptor Real Estate
• Silver Hill Energy Partners III, LP
• Starwood Capital Group
• State Street Global Advisors (NZAM)
• Ten Coves Capital
• Terra Partners Asset Management
• Townsend Group
• Trice Medical Inc.
• Valar Ventures
• Verdant
• Veritas Capital
• Walden International

Governance and accountability

This section features information about the nine-member board of trustees that oversees the Michigan Municipal Employees Retirement System (MERS). The board is specific to oversight of MERS and does not exercise oversight duties for other state funds.

Board selection method

The board of trustees that oversees MERS is made up of nine members. Three members of the board are officers of a participating municipality or court and are members of the retirement system; three members of the board are not officers of a participating municipality or court and are members of the retirement system; two members are appointed by the board, having experience either administering or participating in retirement systems, or investment management or advisory services; and one member is a retiree participant of the system appointed by the board.

Board of trustees membership

A nine-member board of trustees oversees the operation and administration of MERS. The following individuals served on the board as of October 2024:

• Keith Van Beek, chairperson
• Kirk Harrier
• Jason Sarata
• Kyle Lewis
• Lisa Rauch
• James R. Wiersma
• Michael Gilmore
• John Ogden
• vacant

See also

• Public pensions in Michigan
• 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

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Footnotes

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