Pension Funds Management and Investments
The State Treasurer's Office administers the investment policies and strategies adopted by the
Vermont Pension Investment Committee for the benefit of the Vermont State Retirement System, Vermont State Teachers' Retirement System and Vermont Municipal Employees Retirement System.
Table of Contents
- Vermont Pension Investment Committee (VPIC)
- VPIC Mission Statement
- Pension Funds Financial Snapshot
- Asset Allocation
- Pension Funds Holdings
- Contact Us
The charge of the Vermont Pension Investment Committee is to combine the assets of the State Teachers' Retirement System of Vermont, the Vermont State Employees' Retirement System, and the Vermont Municipal Employees' Retirement System for the purpose of investment in a manner that is more cost- and resource-efficient and will improve the effectiveness of the oversight and management of the three systems' assets. VPIC also aims to maintain the actuarial, accounting, and asset allocation integrity of the three systems.
The mission of the Vermont Pension Investment Committee (VPIC) is to make and manage investments for the Vermont State Employees' Retirement System, Vermont State Teachers' Retirement System, Vermont Municipal Employees' Retirement Systems, and the other Public Retirement System, with integrity, prudence, and skill to meet or exceed the financial objectives of the beneficiaries of the funds.
The Vermont Pension Investment Committee (VPIC) systems had combined assets of approximately $3.8 billion as of June 30, 2016.
Net rates of return for the seven years through June 30, 2016 were:
- 8.7 percent for the Vermont State Retirement System
- 8.6 percent for the State Teachers' Retirement System
- 8.7 percent for the Vermont Municipal Employees' Retirement System
Comparatively, for the seven years ended June 30, 2016, the median public retirement plan in the United States (InvestorForce Public Defined Benefit net data) had an average annualized total return of 8.7 percent.
Over the long term, Vermont's systems in aggregate compare favorably with the majority of public pension plans.
To see financial performance reports for the pension systems, click on one of the systems below:
Asset allocation is essential to the investment performance of the plan. In order to insulate the portfolios from short-term market fluctuations, the three pension systems diversify assets across a broad group of asset classes, which enables each portfolio to maintain stability through market cycles of the different asset classes. Each system's assets are invested in stocks, bonds, global asset allocation strategies and real estate, with an additional small allocation to alternative partnerships. These investment categories have imperfect correlations, so if one category is faltering, another may be doing exceedingly well. This strategy minimizes the effects of short term volatility that occurs within each asset class and is totally different from market timing, in which an investor attempts to predict the ups and downs of various markets. In such a strategy, substantial losses can occur if the timing decision is incorrect.
Pension Funds Asset Allocation
Current targeted allocation (Approved as of March 22, 2016) :
* Includes "portable alpha" strategies that may invest in a variety of underlying asset classes.
** Treasury Inflation Protected Securities
Links to holdings of the VPIC portfolio as of the most recent fiscal year end and the most recent quarter are listed below. For holdings in periods other than those listed, please contact TRE.VPICInquiries@vermont.gov
If you have trouble finding information or materials regarding the pension fund please contact us at TRE.VPICInquiries@vermont.gov or call (802)-828-3668.