University of California Retirement System
| University of California Retirement System | |
| Basic facts | |
| Location: | Oakland, California |
| Top official: | Terrence Hendershott, chair |
| Year founded: | 1961 |
| Active members: | 141,416 |
| Website: | Official website |
| Total assets under management | |
| 2023: | $88,194,785,000 |
- See also: Public pensions in California
The University of California Retirement System is a California state pension fund that provides retirement, disability, and survivor benefits to University of California faculty and career staff, as well as their families. The University of California Retirement System had $88,194,785,000 ($88.2 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 University of California Retirement System.
- Pension performance overview: Overview of the funding level and assets managed by the University of California Retirement System.
- Assets and asset management: Information about the asset management companies (AMCs) that contract with University of California 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 University of California Retirement System's oversight board, including members and selection.
Background
- See also: Public pensions
The University of California Retirement System, founded in 1961, operates as a defined benefit plan based on a formula established by California state law. These plans—based on the employee's length of service and salary— provide retirement, disability, and survivor benefits to university faculty, career staff, and their families.[1]
The University of California Retirement System served over 141,416 active members and 75,992 retirees and beneficiaries as of 2023.[1]
Pension performance overview
The following table features information about the funding level and assets managed by the University of California Retirement System as of June 30, 2023:[1]
| University of California Retirement System pension performance (June 30, 2023) | |||
|---|---|---|---|
| Fiscal year | Percent funded | Unfunded liabilities | Total assets |
| 2022 | 81.8% | $21,862,456,000 | $88,194,785,000 |
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.[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 California State Teachers' Retirement System
The California State Teachers' Retirement System denied to provide any details about the asset management companies (AMCs) it contracts with as of November 2022. It is unknown how many of these AMCs are investor participants in Climate Action 100+ or NZAM as of 2024.[5]
Governance and accountability
This section features information about the 11-member board of trustees that oversees the University of California Retirement System. The board is specific to oversight of the University of California Retirement System and does not exercise oversight duties for other state funds.[6]
Board selection method
The board of trustees that oversees the University of California Retirement System is made up of 11 members. The board is selected accordingly:
- an officer of the University appointed by the President of the University;
- three persons appointed by the President of the University;
- the Chief Investment Officer (CIO) designee;
- two persons selected by the Academic Senate from the ten UC campuses; *two persons from different UC locations (campus, medical center or lab affiliation) elected by active University of California Retirement Plan (UCRP) members or active Savings Choice participants in the UC Defined Contribution Plan who are not members of the Academic Senate;
- and two retired UCRP members or Savings Choice participants currently serving as Chair of the Council of UC Emeriti Associations (CUCEA) and/or the Council of UC Retiree Associations (CUCRA). With the exception of the two retired members, UCRS Advisory Board members must be active UCRP members or active Savings Choice participants.[6]
Board of trustees membership
An 11-member board of trustees oversees the operation and administration of the University of California Retirement System. The following individuals served on the board as of June 2023:[6]
- Terrence Hendershott, chair
- Chuck Haines, vice chair
- Jagdeep Bachher
- Cheryl Lloyd
- Rachael Nava
- David Kleinfeld
- David Yamada
- Dorothy Ong
- Ruth Zolayvar
- John Meyer
- Jo Anne Boorkman
See also
- Public pensions in California
- 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 University of Calivornia, "Actuarial Valuation and Review, as of July 1, 2023," accessed August 15, 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
- ↑ Ballotpedia, "Ballotpedia: Asset management data for state-administered pension funds across the 50 states," March 2023
- ↑ 6.0 6.1 6.2 University of California.edu, "UC Retirement System Advisory Board," accessed August 15, 2024
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