Minnesota Legislators Retirement Fund
| Minnesota Legislators Retirement Fund | |
 | |
| Basic facts | |
| Location: | St. Paul, Minnesota |
| Top official: | Mary Benner, chair |
| Year founded: | 1965 |
| Active members: | 12 |
| Website: | Official website |
| Total assets under management | |
| 2023: | $229,000 |
- See also: Public pensions in Minnesota
The Minnesota Legislators Retirement Fund is a Minnesota state pension fund that provides retirement, disability, and survivor benefits to the state's Legislators and justices. The Minnesota Legislators Retirement Fund had $229,000 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 the Minnesota Legislators Retirement Fund.
- Pension performance overview: Overview of the funding level and assets managed by the Minnesota Legislators Retirement Fund.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with Minnesota Legislators Retirement Fund, 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 Minnesota Legislators Retirement Fund's oversight board, including members and selection.
Background
- See also: Public pensions
The Minnesota Retirement System, founded in 1929, invests the assets of and provides funding for the Minnesota General Employees Retirement Fund, the Minnesota Correctional Retirement Fund, the Minnesota Legislators Retirement Fund, the Minnesota Judges Retirement Fund, and the Minnesota Legislators Retirement Fund. These plans operate as defined benefit pension plans based on a formula established by Minnesota 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 sector employees.[2]
The Minnesota Legislators Retirement Fund served over 12 active members and approximately 349 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 Minnesota Legislators Retirement Fund as of June 2023:[1]
| Minnesota Legislators Retirement Fund pension performance (June 30, 2023) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total assets[3] |
| 2023 | 0.0% | $158,755,000 | $229,000 |
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.[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 Minnesota Legislators Retirement Fund
The Minnesota State Board of Investment (SBI) manages investments for the Minnesota Legislators Retirement Fund. SBI contracted with 125 asset management companies (AMCs) or specific funds as of June 30, 2021. Of those companies, 13 were investor participants in Climate Action 100+, and 17 were members of NZAM as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with the Minnesota Legislators Retirement Fund:[7]
- Acadian Asset Management LLC (NZAM)
- Adams Street Partners
- Advent International
- Affinity Ventures
- Angelo, Gordon & Co.
- Apax Partners
- AQR Capital Management, LLC (Climate Action 100+)
- Ariel Investments, LLC
- ArrowMark Colorado Holdings, LLC
- Arsenal Capital Partners
- Ashmore Investment Management Ltd. (NZAM)
- Asia Alternatives
- Audax Group
- Avenue Capital Partners
- Baillie Gifford Overseas Limited (NZAM)
- Banc Fund
- Barrow, Hanley, Mewhinney & Strauss, LLC
- BlackRock Institutional Trust Company, N.A. (NZAM)
- Blackstone Capital Partners
- Blackstone Strategic Partners
- Bridgepoint
- Brookfield Asset Management (NZAM)
- Canyon Partners
- Cardinal Partners
- Carlyle Group
- CarVal Investors
- Chicago Growth Partners (William Blair)
- Columbia Threadneedle Investments (NZAM)
- Court Square Capital Partners
- Crescendo
- CVC Capital Partners
- Dodge & Cox
- Earnest Partners LLC
- EIG Global Energy Partners
- EnCap Energy
- Energy & Minerals Group (EMG)
- Energy Capital Partners
- EnerVest Energy
- Fidelity Institutional Asset Management LLC (Climate Action 100+)
- First Reserve (Climate Action 100+)
- Gold Hill Venture Lending
- Goldman Sachs Asset Management, L.P.
- Goldman Sachs Mezzanine Partners
- Goldner Hawn Johnson and Morrison
- GTCR
- HarbourVest
- Hellman and Friedman
- Hood River Capital Management, LLC
- Hotchkis & Wiley Capital Management, LLC
- HPS Investment Partners
- IK Investment Partners
- J.P. Morgan Investment Management Inc. (NZAM, Climate Action 100+)
- Kohlberg, Kravis and Roberts (KKR)
- Landmark Partners
- LBC Credit Partners
- Leonard Green & Partners
- Lexington Capital Partners
- LSV Asset Management
- Lubert-Adler
- Macquarie Investment Management Advisers (NZAM)
- Madison Dearborn Capital Partners
- Marathon Asset Management LLP (Climate Action 100+)
- Martin Currie Inc. (NZAM)
- Martingale Asset Management, L.P.
- McKinley Capital Management, LLC
- Merced Capital
- Merit Capital Partners
- Merit Energy Partners
- MHR Institutional Partners
- Morgan Stanley Investments Management Inc.
- Natural Gas Partners
- Neuberger Berman Investment Advisers LLC (NZAM)
- NISA Investment Advisors, LLC
- Nordic Capital
- North Sky Capital
- Oak Hill Capital Management, Inc.
- Oaktree Capital Management
- Pacific Investment Management Company LLC (PIMCO) (Climate Action 100+)
- Paine Schwartz
- Payden & Rygel (NZAM, Climate Action 100+)
- Peregrine Capital Management
- Permal PE (formerly Glouston Capital Partners)
- Permira
- PGIM Fixed Income
- Pimco Bravo (Climate Action 100+)
- Portfolio Advisors
- Prudential Global Investment Management
- Public Pension Capital Management
- Pzena Investment Management, LLC (NZAM)
- Record Currency Management LLC
- Rice Hall James & Associates, LLC
- Rockpoint
- Rockwood
- Sands Capital Management, LLC
- SBI Internal Portfolio (Climate Action 100+)
- Sheridan Production Partners
- Silver Lake Partners
- Silverpeak Real Estate Partners
- Split Rock Partners
- State Street Global Advisors (NZAM, Climate Action 100+)
- Summit Partners
- T. Rowe Price (NZAM)
- TA Associates Realty
- TCW Asset Management
- The Rock Creek Group, LLC (NZAM, Climate Action 100+)
- Thoma Bravo
- Thoma Cressey
- Thomas H. Lee Partners
- Thomas, McNerney & Partners
- TPG Capital
- TSSP
- Varde Partners
- Vestar Capital Partners
- Vista Equity Partners (NZAM)
- Warburg Pincus
- Wayzata Investment Partners
- Wellington Management Company LLP (NZAM, Climate Action 100+)
- Wellspring Capital Partners
- Welsh, Carson, Anderson and Stowe (WCAS)
- Western Asset Management Company, LLC (Climate Action 100+)
- Whitehorse Capital
- Wind Point Partners
- Windjammer Capital Investors
- Winslow Capital Management, LLC
- Zevenbergen Capital Investments LLC
Governance and accountability
This section features information about the 11-member board of trustees that oversees the Minnesota Legislators Retirement Fund. The board is not specific to oversight of the Minnesota Legislators Retirement Fund and does exercise oversight duties for other state funds.[8]
Board selection method
The board of trustees that oversees the Minnesota Legislators Retirement Fund is made up of 11 members. Six directors are elected by active (presently working) members covered by an MSRS pension plan. The Legislators Plan and Legislators Plan elect one board member each. The Legislators Retirement Plan and Unclassified Retirement Plan elect four members. One director is elected by the retirees of all plans. One director is appointed by the Metropolitan Transit Council. Three directors are appointed by the governor.[8]
Board of trustees membership
A 11-member board of trustees oversees the operation and administration of the Minnesota Legislators Retirement Fund. The following individuals served on the board as of June 2024:[8]
- Mary Benner, chair
- Micahel Roelofs
- Chester Jorgenson
- Michael LeDoux
- Erin Campbell
- Jacqueline Terry
- Joseph Sullivan
- Wesley Skoglund
- Jason Bonnett
- Lee Thor
- ’Tommy Bellfield
See also
- Public pensions in Minnesota
- 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 ‘’MSRS’’, “Minnesota Legislators Retirement Fund,” December 7, 2023
- ↑ 2.0 2.1 ‘’Minnesota State Retirement System’’, “About MSRS,” accessed June 24, 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 ‘’MSRS’’, “MSRS Board of Directors,” accessed June 24, 2024
| |||||||||||||||||||||||
