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TRS keeps incentive plan requiring positive return
The investment team at the Teacher Retirement System of Texas will not be getting any incentive payments until the fund produces a positive return, the Board of Trustees reiterated on Thursday.
In February, the board members modified the pension fund’s incentive policy — making the incentive payments contingent upon a positive annual return — amid a legislative firestorm over bonuses paid at the University of Texas Investment Management Company as the market plunged last fall.
The decision on Thursday keeps in place that policy.
More than 80 investment team employees were due a piece of the $2.5 million incentive pie based on the fund’s performance as of Aug. 31, 2008, even though the fund balance had fallen 27 percent.
The payments would have been delayed until 2010 anyway but, without the change, would have been paid out next year regardless of the fund’s condition.
Eventually, the employees will get last year’s share — assuming they stick around — as well anything earned based on the the 2009 performance.
Most likely, the earliest they could see that money, however, will be in 2011 given the unprecedented market declines over the past year.
The $82 billion fund as of the end of June was down about 22 percent compared to last year at the same time.
Investment results have been on the upswing of late with a 12.3 percent positive return in the second quarter of the year.
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By tspears
August 22, 2009 2:20 AM | Link to this
Great idea!! Don’t pay bonuses unless the fund makes money!! Why didn’t I think of that?
When is the attorney general going to decide about the $500 thirteenth check???
By Jeannon Kralj
November 1, 2009 5:54 PM | Link to this
The decision about the 13th check is supposed to happen in December, but don’t hold your breath.
I sure would like to see the value of the TRS fund compared over the last 3 or 4 years. If my memory serves me, my cursory following of the fund’s value over the last few years shows the fund has lost around 50 billion dollars.
Rick Perry needs to go and there needs to be a close audit and look at every aspect of the TRS fund. If Perry wins, he will make sure TRS invests in his globalist bankers schemes regarding Texas roads public private partnerships.