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Next Benefit Payment Date February 29

Investment Allocation and Rates of Return for Fiscal Year 2023

E-mail for GASB questions: Pension Accounting at TMRS
 

Effective December 31, 2015, the long-term expected rate of return on TMRS pension plan investments is 6.75%. The pension plan’s policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation and the production of income in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments is determined by weighting the expected return for each major asset class by the respective target asset allocation percentage. The target allocation and best estimates of arithmetic rates of return for each major asset class are summarized in the following table:

Asset ClassTarget AllocationLong-Term Expected Real Rate of Return (Arithmetic)
Global Equity35%7.7%
Core Fixed Income6%4.9%
Non-Core Fixed Income20%8.7%
Other Public and Private Markets12%8.1%
Real Estate12%5.8%
Hedge Funds5%6.9%
Private Equity10%11.8%
Total100%