Teachers' Retirement System Kentucky
| Teachers' Retirement System Kentucky | |
 | |
| Basic facts | |
| Location: | Frankfort, Kentucky |
| Top official: | Brenda McGown, chair |
| Year founded: | 1940 |
| 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 1940, operates as a defined 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[2] |
| 2023 | 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 investment assets for state pension funds across all 50 states.
The Net Zero Asset Managers Initiative (NZAM) suspended operations in January 2025 and relaunched in February 2026 with more than 250 signatories under a revised commitment statement that removed its prior net-zero deadline requirement.[3]
As of October 2024, 391 AMCs were investor participants in the Climate Action 100+ initiative, which aims to align investor engagement with companies toward the goal of net zero greenhouse gas emissions by 2050.[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. 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 by members
- one retired member, chosen by members
- two trustees from outside the teaching profession, chosen by 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]
- ↑ 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.
- ↑ Reuters, "Investor climate group relaunches with looser rules but fewer US members", February 25, 2026
- ↑ Climate Action 100+, "The Three Goals," accessed June 20, 2023
- ↑ 5.0 5.1 5.2 trs.ky.gov, “Administration,” accessed July 22, 2024
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