Retirement Systems of Alabama Achieves Record Investment Returns
The Retirement Systems of Alabama (RSA) has announced record-breaking investment returns for the fiscal year ending September 30, marking “the best year ever” for the pension fund, according to officials. The Teachers’ Retirement System (TRS) reported a remarkable 21% return on investments, generating $5.7 billion in income and bringing the fund’s total to nearly $32.5 billion.
RSA Deputy Director of Investments Marc Green highlighted that the Employees’ Retirement System yielded a 21.21% return, while the Judicial Retirement Fund achieved even higher returns at 22.21%. Collectively, these results position RSA in the top 20th percentile among peer investment groups, according to Green.
CEO David Bronner, who has led RSA for over 50 years, celebrated the achievement, emphasizing its potential positive impact on the system’s funding levels over the next five years. Legislative counsel for RSA, Neah Scott, noted that the exceptional returns should significantly benefit the funded liabilities ratio of the RSA as they are recognized in future actuarial valuations.
Despite the positive figures, funded liabilities for the TRS have decreased from a 70.7% funded ratio in 2021 to 65.1% in 2023. The Employees’ Retirement System similarly dropped from 62% to 57% during the same period. RSA is expected to request more state funding in fiscal 2026 to address these liabilities.
Sen. Arthur Orr, chairman of the Senate education budget committee, acknowledged the importance of the strong returns in alleviating unfunded liabilities but cautioned that the pension plans are still in a “yellow zone” regarding their overall funded status. The final implications of these investment successes will unfold in the coming years as RSA continues to address its financial challenges.
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