For Immediate Release
Contact: Director of Public Relations Janelle Gurnsey
SPRINGFIELD, IL – The Teachers’ Retirement System of the State of Illinois (TRS) reported a notable increase in its funded status for the year ending June 30, 2024, marking the fourth consecutive year of improvement. The funded ratio, based on the actuarial value of assets, has risen to 45.8 percent, up from 44.8 percent the previous year. This one-percentage-point increase is attributed to strong investment returns and consistent funding, positioning TRS for a positive financial trajectory.
At the fiscal year end, the actuarial value of assets reached $70.7 billion, a significant milestone that underscores the effectiveness of TRS's investment strategies and the essential support from the Governor and the General Assembly.
"We are encouraged by this increase in our funded status, which is a testament to the diligent efforts of our investment team and the continued support from state leadership," said TRS Executive Director and Chief Investment Officer Stan Rupnik. "This progress not only enhances our ability to meet our long-term obligations but also strengthens our mission to provide our members with the retirement security they have earned and deserve."
The TRS Board of Trustees has also given preliminary approval for a $6.49 billion state contribution for fiscal year 2026. Additionally, in accordance with the board’s funding policy, a proposal for $10.73 billion will be submitted for review by the State Actuary, the Governor, and the General Assembly.
The funded ratio remains important as an official measure of the System’s long-term fiscal health, but it is not a reflection of the System’s current financial ability to pay benefits. In any given year, TRS is obligated under state law to pay only the amount of money owed annually to eligible retired members and other beneficiaries. Since its establishment in 1939, TRS has paid all benefits in full and on time.
In other action, the trustees approved a slight increase in the annual goal of TRS assets to be administered by investment managers that qualify as Minority and Women-owned Business Enterprises (MWBE). The Board set a new internal goal of 23 percent, up from the previous year’s MWBE goal of 22 percent.
"We are committed to ensuring that our investment practices reflect our values, including increasing our partnerships with Minority and Women-owned Business Enterprises," said President of the Board of Trustees Matthew Hunt. "By setting a new internal goal of 23 percent for MWBE-managed assets, we not only enhance diversity within our investment portfolio but also strengthen the stability of our benefits for all members. This commitment is vital as we continue to deliver on our promise to provide reliable retirement benefits to our educators."
In FY 2024 approximately 28.9 percent of TRS assets were managed by 41 MWBE firms, for a total of $21.2 billion. The plan continues to benefit from the relationships initiated within the System’s Emerging Manger Program, as well as the continued growth with minority managers within the overall portfolio. For the past seven years, TRS has consistently surpassed the Illinois General Assembly's long-term goal of 20 percent utilization for the Plan.
Finally, Trustees discussed the following investment actions within the TRS portfolio:
Within the System’s $12.4 billion Private Equity Portfolio:
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The commitment of €30 million to BlackFin Capital Partners of Paris. BlackFin is a new relationship for TRS.
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The commitment of $30 million to Mill Point Capital Partners of New York. Mill Point currently manages $46.8 million in TRS assets.
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The commitment of $65 million to Insight Venture Partners of New York. Insight currently manages $203.5 million in TRS assets.
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The commitment of $16.7 million to Quantum Energy Partners of Houston. Quantum is a new relationship for TRS.
Within the $12.4 billion Real Assets Portfolio:
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The commitment of $300 million to Carlyle Group of Washington, DC. Carlyle currently manages $253.6 million in TRS assets.
Within the $21.4 billion Global Income Portfolio:
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The commitment of $250 million to Cerberus Capital Management of New York. Cerberus currently manages $694.5 million in TRS assets.
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The allocation of $400 million to Brown Brothers Harriman & Co of New York. BBH is a new relationship for TRS.
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The allocation of $400 million to TCW Asset Management Company of Los Angeles. TCW is a new relationship for TRS.
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The allocation of $200 million to Longfellow Investment Management Co of Boston. Longfellow is a new relationship for TRS.
About Teachers' Retirement System of the State of Illinois
The Teachers’ Retirement System of the State of Illinois is the 38th largest pension system in the United States, and provides retirement, disability and survivor benefits to teachers, administrators and other public-school personnel employed outside of Chicago. The System serves over 448,000 members and had assets of $73.95 billion as of September 30, 2024.
