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Vermont Municipal Employees' Retirement System

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Vermont Municipal Employees' Retirement System
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Basic facts
Location:Montpelier, Vermont
Top official:Chris Dube, chair
Year founded:1975
Active members:8,393
Website:Official website
Total assets under management
2021:$1,356,375,761
See also: Public pensions in Vermont

The Vermont Municipal Employees' Retirement System is a Vermont state pension fund that provides retirement, disability, and survivor benefits to the state's municipal employees. The Vermont Municipal Employees' Retirement System had $1,356,375,761 ($1.3 billion) in total assets under management as of June 30, 2021.[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

See also: Public pensions

The Vermont Municipal Employees' Retirement System (VMERS), founded in 1975, invests the assets of and provides funding for the Vermont Employees Retirement System. VMERS operates as a defined benefit pension plans based on a formula established by Vermont state law. These plans—based on the employee's length of service and salary—provide retirement, disability, and survivor benefits to the state’s city employees.[2]

The Vermont Municipal Employees' Retirement System served over 8,393 active members and approximately 4,431 retirees and beneficiaries as of May 2024.[2]

Pension performance overview

The following table features information about the funding level and assets managed by the Vermont Municipal Employees' Retirement System as of June 30, 2021:[1]

Vermont Municipal Employees' Retirement System pension performance (June 30, 2021)
Fiscal year Percent funded Unfunded liabilities Total assets[3]
2021 77.9% $237,072,174 $1,356,375,761

Assets and asset management

Environmental, social, and corporate governance
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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 Vermont Municipal Employees' Retirement System

The Vermont Municipal Employees' Retirement System contracted with 15 asset management companies (AMCs) or specific funds as of December 31, 2021. Of those companies, eight were investor participants in Climate Action 100+, and eight were members of NZAM as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with the Vermont Municipal Employees' Retirement System:[7]

  • Acadian International All Cap (SA) (NZAM, Climate Action 100+)
  • Artisan Global Opportunities Trust
  • BlackRock MSCI ACW IMI (SA) (NZAM, Climate Action 100+)
  • Blackrock MSCI World LCTR (SA) (NZAM, Climate Action 100+)
  • Blackrock S&P 500 (Eql Wtd) (SA) (NZAM, Climate Action 100+)
  • Blackrock TIPS (CF) (NZAM, Climate Action 100+)
  • BlackRock US Agg. (SA) (NZAM, Climate Action 100+)
  • Champlain US Mid Cap Core (SA)
  • Mondrian International Equity (SA)
  • PIMCO Core (SA)
  • PIMCO Liquidation (SA)
  • PIMCO Unconstrained (SA)
  • SSgA Russell 2000 Growth (Ex Tobacco) (SA)
  • UBS Trumbull Property (CF) (Net) (NZAM, Climate Action 100+)
  • Wellington Opportunistic EMD (CF) (NZAM, Climate Action 100+)

Governance and accountability

This section features information about the five-member board of trustees that oversees the Vermont Municipal Employees' Retirement System. The board is specific to oversight of the Vermont Municipal Employees' Retirement System and does not oversight duties for other state funds.[8]

Board selection method

The board of trustees that oversees the Vermont Municipal Employees' Retirement System is made up of five members. The State Treasurer, two employee representatives elected by the membership of the system, and two employer representatives--one elected by the governing bodies of participating employers of the system and one selected by the Governor from a list of four nominees.[8]

Board of trustees membership

A five-member board of trustees oversees the operation and administration of Vermont Municipal Employees' Retirement System. The following individuals served on the board as of May 2024:[8]

  • Chris Dube, chair
  • Kimberly Gleason, vice chair
  • Morgan Daybell
  • Kathleen Ramsay
  • Michael Pieciak

See also

External links

Footnotes