Minnesota State Retirement System (MSRS)

No one at MSRS directly manages investments. The Minnesota State Board of Investment, an independent state agency led by Executive Director Jill Schurtz, acts as the sole fiduciary for all MSRS assets. MSRS pools its capital with other Minnesota retirement systems in SBI-managed combined trusts, gaining exposure to public equities, fixed income, real estate, private equity, and hedge funds through a single delegated manager. This structure dates back decades and is codified in state statute.

MSRS is an administrative agency, not an investment shop. It has no chief investment officer, no internal trading desk, and no direct manager-selection authority. The system focuses exclusively on member services, benefits administration, and compliance. Investment decisions — asset allocation, manager hiring, performance monitoring — are the statutory responsibility of the Minnesota State Board of Investment, a separate entity.

MSRS and the Teachers Retirement Association are separate statewide pension systems serving different constituencies, but they share a common investment manager. Both systems participate in the State Board of Investment's combined funds, pooling their assets for scale. This arrangement means they hold identical portfolio exposures, though their funded ratios and contribution requirements differ based on each system's demographic profile and benefit structure.

MSRS gains investment exposure through the State Board of Investment, which uses a mix of external managers and fund commitments. The SBI portfolio includes direct holdings in public securities as well as limited partnership interests in private equity, real estate, and infrastructure funds. MSRS itself does not execute transactions. Confirmed SBI fund commitments include TA Realty Value-Add Fund XIV, Blackstone Real Estate Partners, and Energy Capital Partners VI.

Minnesota state law requires annual actuarial valuations that measure each plan's funded ratio — the percentage of future liabilities covered by current assets. Contribution rates for both employers and employees are adjusted based on these valuations. MSRS has historically maintained funding levels above the national average for state pension plans, though the exact ratio varies by plan. The most recent complete valuation is available through the system's annual comprehensive financial report, which has received multiple GFOA awards for transparency.

No. Because MSRS has no investment staff, it cannot run a co-investment program. Any co-investment activity would be conducted by the State Board of Investment at the combined-trust level. The SBI has broad discretion under its investment policy statement to pursue co-investments alongside external managers, but MSRS as an entity does not participate in deal sourcing, due diligence, or execution.

The MSRS board of directors includes members appointed by the governor, elected by plan participants, and serving ex officio based on their state government roles. The board governs plan design, benefits administration, and operational policy. Critically, the board does not exercise investment fiduciary authority — that responsibility resides solely with the State Board of Investment, whose members are separately appointed and operate under a different statutory framework.