TEXPERS Pensions Outlook: Key Updates for Public Pension Professionals
Staying ahead of economic shifts, policy changes, and market movements is crucial for public pension funds, institutional investors, and retirement professionals. This week's developments highlight a mix of economic optimism, policy initiatives, and investment challenges. Below, we break down key stories shaping the landscape, providing The Story and Why It Matters to help you navigate these changes.
Elevate Your Networking at The Hat Affair: A Brunch Experience
The Story
Join us for The Hat Affair: A Brunch Experience on Sunday, March 30, from 9:30 a.m. to 12:30 p.m. during the TEXPERS 2025 Annual Conference at the Renaissance Austin Hotel in Austin, Texas.
Picture this: a gourmet brunch spread, a lively atmosphere, and an exclusive Hat Design Station, where you can create a custom piece that reflects your personality. Choose from a selection of high-quality hats and add your personal touch with an array of embellishments—ribbons, feathers, charms, and more—to craft a unique look.
This is more than just brunch; it’s a morning filled with flavors, fashion, and fun—the perfect setting to connect with fellow trustees, administrators, and investment professionals in a relaxed and creative environment.
Cost:$35 for System Members$100 for Professional Investment MembersWhy It Matters
Networking is essential for industry professionals, and this creative and engaging experience offers a unique way to connect. Limited spots are available—register early!
Register Now for the TEXPERS 2025 Annual Conference
The TEXPERS 2025 Annual Conference, presented by Dimensional Fund Advisors, is fast approaching! Join us from March 30 to April 2, 2025, at the Renaissance Austin Hotel in Austin, Texas, for one of the most important gatherings of public pension fund trustees, administrators, and industry professionals.
Conference Highlights:
✔ Updated Agenda – Explore newly added sessions covering the latest trends, challenges, and innovations in public pension management, investment strategies, and governance.✔ Distinguished Speakers – Learn from top experts and thought leaders offering critical insights into the evolving landscape of public pensions.✔ Expanded Exhibitor List – Meet and network with industry-leading providers, showcasing innovative solutions and services for pension funds.✔ Unmatched Networking Opportunities – Connect with peers, industry professionals, and policy experts at networking events and roundtable discussions.Pre-Conference Trustee Training – Saturday, March 29TEXPERS is offering Basic Trustee Training and Advanced Trustee Training as pre-conference programming on Saturday, March 29. These separate ticketed events enhance trustee knowledge.
Dates: March 30 – April 2, 2025
Location: Renaissance Austin Hotel, 9721 Arboretum Blvd., Austin, TX 78759
Questions? Contact [email protected]
View Conference Details & Register
Secure your spot today and gain valuable insights into public pension fund management!
Texas Releases Five-Year Economic Development Plan
The Story: Texas Governor Greg Abbott has unveiled a five-year strategic plan for economic development to ensure the state remains a competitive global economic leader. The plan outlines priorities such as business attraction, workforce development, infrastructure investment, and innovation-driven growth. It also emphasizes fostering a business-friendly environment to support entrepreneurs and major industries, focusing on sustaining Texas' economic resilience amid national and global challenges.
Why It Matters: Economic growth directly influences investment opportunities and fiscal stability. A strong business climate enhances job creation, tax revenues, and overall expansion, supporting the financial health of state and local pension systems. Infrastructure investments and workforce development initiatives may also create new investment prospects in the real estate, energy, and technology sectors.
Governor Abbott Appoints New ERS Board Trustee
The Story: Governor Greg Abbott has appointed Christopher Frost to the Employees Retirement System (ERS) Texas Board of Trustees. ERS manages billions in assets and provides retirement benefits to thousands of public workers. Frost's appointment reflects ongoing efforts to strengthen governance and financial oversight of the system.
Why It Matters: Leadership changes in public pension boards directly impact investment strategies, fund governance, and policy decisions. As a trustee, Frost will help shape ERS's approach to asset allocation, risk management, and benefit administration, influencing the system's long-term financial health.
Public Pension Funding Index Shows Gains
The Story: Milliman's latest Public Pension Funding Index reports that the funded ratio of the 100 largest U.S. public pension plans stood at 81.1% as of Jan. 31, 2025. This reflects an improvement from 80% at the end of December 2024, following a 1.9% investment return in January.
Why It Matters: Funded ratios are critical indicators of financial health. Understanding these metrics helps stakeholders assess pension sustainability and make informed decisions regarding contributions, benefits, and investment approaches.
TRS Testifies Before House Pensions Committee
The Story: Brian Guthrie, Executive Director of the Teacher Retirement System (TRS) of Texas, testified before the House Pensions, Investments, and Financial Services (PIFS) Committee. He reported that the TRS pension trust fund has surpassed $210 billion and addressed concerns about education savings accounts (ESAs) and inflation's impact on retirees.
Why It Matters: TRS's financial health is crucial for Texas educators and public pension stakeholders. The discussion on ESAs and inflation introduces potential shifts in funding and policy that could impact pension contributions.
Texas Municipal Retirement System CIO on Investments
The Story: The Texas Municipal Retirement System (TMRS) CIO emphasized the importance of portfolio diversification and alternative investments like private equity and real assets to navigate economic fluctuations.
Why It Matters: TMRS's investment strategies influence its ability to meet future obligations and maintain financial stability. Institutional investors can gain insights from its approach to alternative assets and risk management.
State Retirement Funds Adjust Investments in Texas-Based Companies
The Story: Several state retirement systems made portfolio adjustments:
- Kentucky Retirement Systems Invests in Texas Pacific Land Corp.
- Louisiana State Employees’ Retirement System Reduces Texas Instruments Position
- Retirement Systems of Alabama Sells Shares in Texas Roadhouse
Why It Matters: These moves reflect market shifts, risk assessments, and sector performance influencing public pension fund strategies.
Siemens and Apple Announce Major Investments in Texas
The Story:
- Siemens announced a $285 million investment in U.S. manufacturing, including a new Fort Worth facility.
- Apple committed $500 billion over four years, including a Houston-based AI server factory.
Why It Matters: These investments bolster Texas' economy, creating jobs and infrastructure improvements that could positively impact public pension portfolios.
Billionaire Ross Perot Jr. Warns on Tariffs
The Story: Perot expressed concerns that tariffs could deter investment and disrupt supply chains.
Why It Matters: Trade policy uncertainties may impact Texas industries, influencing pension fund investments in manufacturing and logistics.
Texas Infrastructure Report Shows Mixed Results
The Story: The Texas Infrastructure Report Card gave the state a C grade, with strengths in bridges but weaknesses in levees, broadband, and stormwater systems.
Why It Matters: Infrastructure quality impacts economic growth and investment opportunities for public pension funds.
Kevin O'Leary Warns Against Early Retirement Risks
The Story: Renowned investor and entrepreneur Kevin O'Leary cautions that early retirement can increase financial risks and reduce long-term stability.
Why It Matters: Retirement professionals should emphasize sustainable financial planning to ensure adequate retiree income security.