Texas Employees raises target for infrastructure investment this year
Texas Employees raises target for infrastructure investment this year
Getty Images
Texas Employees Retirement System, Austin, increased its private infrastructure annual tactical plan for fiscal year 2021 to a total commitment amount of $475 million.
The $32 billion pension fund s new tactical plan, which has an upper range of $617.5 million, was approved at its board meeting Wednesday, said spokeswoman Mary Jane Wardlow in an email.
The prior target for the fiscal year ending Aug. 31 was $400 million. Investment staff recommended increasing the current fiscal year s target for the pension fund s $1.2 billion private infrastructure program due to changes in the market since the plan was originally approved before the beginning of the current fiscal year.
Texas Employees earmarks $200 million for distressed debt, co-investments
Print
Texas Employees Retirement System, Austin, disclosed private markets commitments totaling $198 million in April, according to a transaction report.
The $30.9 billion pension fund committed $150 million to Marblegate Partners Onshore Fund II, a distressed debt fund that seeks investments in middle-market credit opportunities primarily in North America, managed by
Marblegate Asset Management.
The pension fund also committed a total of $48 million to five private equity co-investments: $15 million to CO20210408, $12 million to CO20210412, $10 million to CO20210414, $6 million to CO20210413 and $5 million to CO20210409.
As a matter of policy, ERS does not identify the manager or investment target of co-investments.
Texas Senate bill would close state pension plan to new employees
Bloomberg
The Texas Senate on Wednesday passed a bill that would close the Texas Employees Retirement System s traditional defined benefit plan and move new hires to a cash balance plan.
The bill, passed 19-12 in the Texas Senate, closes the $30.9 billion Austin-based system s traditional defined benefit plan effective Sept. 1, 2022 and state workers hired as of that date would be enrolled in a cash balance plan.
The bill was introduced in order to address the pension fund s unfunded liability of over $14.7 billion, said Texas Sen. Joan Huffman, co-sponsor of the bill, in an email.
Texas Senate gives initial approval to overhaul of pension plans for new state employees
Texas Tribune
Tags:
Credit: Jordan Vonderhaar for The Texas Tribune
Sign up for The Brief, our daily newsletter that keeps readers up to speed on the most essential Texas news.
A plan to overhaul the pension for Texas’ future state employees and shore up billions of dollars in unfunded obligations owed to retirees received initial backing on Wednesday from the Texas Senate.
Republican State Sen. Joan Huffman’s proposal to revamp the Texas Employees Retirement System moved forward by a 20-11 vote, despite fierce opposition from some state workers’ unions. Senate Bill 321 would enroll new state workers hired after Sept. 1, 2022 in a cash balance plan similar to a common 401(k) retirement account rather than the traditional defined benefit pension plan.