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Teachers' Retirement System Kentucky
| Teachers' Retirement System Kentucky | |
 | |
| Basic facts | |
| Location: | Frankfort, Kentucky |
| Top official: | Gary L. Harbin, executive secretary |
| Year founded: | 1938 |
| Active members: | 75,644 |
| Website: | Official website |
| Total assets under management | |
| 2022: | $24,725,018,000 |
- See also: Public pensions in Kentucky
The Teachers' Retirement System Kentucky is a Kentucky state pension fund that provides retirement, disability, and survivor benefits to the state's teachers and their families. The Teachers' Retirement System Kentucky had $24,725,018,000 ($24.7 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 the Teachers' Retirement System Kentucky.
- Pension performance overview: Overview of the funding level and assets managed by the Teachers' Retirement System Kentucky.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with Teachers' Retirement System Kentucky, 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 Teachers' Retirement System Kentucky's oversight board, including members and selection.
Background
- See also: Public pensions
The Teachers' Retirement System Kentucky, founded in 1960, operates as adefined benefit plan based on a formula established by Kentucky state law.These plans—based on the employee's length of service and salary—provide retirement, disability, and survivor benefits to state's teachers and their families. [1]
The Teachers' Retirement System Kentucky served over 75,644 active members and approximately 59,559 retirees and beneficiaries as of June 2023.[1]
Pension performance overview
The following table features information about the funding level and assets managed by the Teachers' Retirement System Kentucky as of June 2023[1]
| Teachers' Retirement System Kentucky performance (June 2023) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total assets |
| 58.6% | $17,454,870,000 | $24,725,018,000 | |
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.[2][3]
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.”[4]
List of AMCs contracting with the Teachers' Retirement System Kentucky
The Teachers' Retirement System Kentucky contracted with 42 asset management companies (AMCs) as of June 2022. Of those companies or funds, seven were investor participants in Climate Action 100+, and nine were members of NZAM as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with the Teachers' Retirement System Kentucky:Cite error: Invalid <ref> tag; invalid names, e.g. too many
- Actis (NZAM)
- Alinda Capital Partners
- AlpInvest Partners
- Angelo Gordon & Company
- Apax Partners
- Audax Group
- Avenue Capital Group
- Baillie Gifford Overseas Ltd. (NZAM, Climate Action 100+)
- Barings Asset Management (Climate Action 100+)
- BlackRock Institutional Trust Co. (NZAM, Climate Action 100+)
- Blackstone Real Estate Advisors
- CapitalSouth Partners
- Chrysalis Ventures
- Columbia Threadneedle Investments (NZAM, Climate Action 100+)
- Fort Washington Investment Advisors
- Galliard Capital Management
- Gavea Investimentos
- Hancock Natural Resource Group
- Hellman & Friedman Capital Partners
- Highbridge Principal Strategies
- IFM Investors (NZAM, Climate Action 100+)
- J.P. Morgan Asset Management (NZAM)
- Kohlberg Kravis Roberts & Co.
- Landmark Partners
- Lexington Capital Partners
- Lord, Abbet & Co.
- Marathon Asset Management
- Molpus Woodlands Group
- Natural Gas Partners
- Oaktree Capital Management
- Prudential Real Estate Investors
- Public Pension Capital
- Riverstone Holdings
- Rockwood Capital
- Shenkman Capital Management
- State Street Global Advisors Trust Co. (NZAM)
- Stepstone Group
- TA Realty
- The Carlyle Group
- Todd Asset Management
- UBS Global Asset Management (NZAM, Climate Action 100+)
- Wellington Management Co. (NZAM, Climate Action 100+)
Governance and accountability
This section features information about the 11-member board of trustees that oversees the Kentucky Retirement System, which oversees both the Teachers' Retirement System Kentucky and Teachers' Retirement System Kentucky. The board is specific to oversight of the Kentucky Retirement System and does not exercise oversight duties for other state funds.[5]
Board selection method
The board of trustees that oversees the Teachers' Retirement System Kentucky is made up of 11 members:[5]
- four active members, chosen my members
- one retired member, chosen my members
- two trustees from outside the teaching profession, chosen my members
- two trustees with investment experience, selected by the governor
- the education commissioner
- the state treasurer
Board of trustees membership
A 11-member board of trustees oversees the operation and administration of Teachers' Retirement System Kentucky. The following individuals served on the board as of July 2024:[5]
- Brenda McGown, chair
- Ben Littlepage, vice chair
- Paul Bruce
- Robbie Fletcher
- Hollis Gritton
- Mark Metcalf
- Laura Schneider
- Louis Straub
- Josh Underwood
- Alison Wright
- Vacant
See also
- Public pensions in Kentucky
- 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 https://trs.ky.gov/wp-content/uploads/2023/11/2023-TRS-Retirement-Annuity-Trust-Report-FINAL.pdf /trs.ky.gov/, "Teachers' Retirement System Kentucky: Annual comprehensive financial report for the fiscal year ended June 30, 2023," accessed July 22, 2024]
- ↑ 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
- ↑ 5.0 5.1 5.2 trs.ky.gov, “Administration,” accessed July 22, 2024
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