Despite some ups and downs, the Teachers Retirement System of Georgia has weathered recent stock market turmoil and has even gained ground over the last year, officials said Wednesday.
The system reported net assets of nearly $108.7 billion as of April 30 — up 6.8% over the same time last year. That’s nearly at the system’s annual goal of 6.9% growth for the fiscal year that ends in June.
The growth comes despite gyrations in the stock market, the chief investment vehicle for the pension system. President Donald Trump’s tariff’s sparked a sharp market decline amid fears of an economic recession.
But the market has recovered its losses in recent weeks as Trump backed off from some tariffs, at least for now.
“Over the past couple months, I’ve been, let’s say, concerned about what report I would be delivering to you today,” Chief Financial Officer Laura Lanier told the TRS Board of Trustees Wednesday. “This week, I’m more optimistic.”
The pension system serves about 152,000 retirees and beneficiaries and about 241,000 active teachers. It’s funded through a mix of employee contributions, state appropriations and investment income.
Like the stock market, the pension system has seen some big swings in recent months. Its net position — assets minus liabilities — peaked at $113.9 billion last November. But sharp declines in December and March offset much of its gains.
After the ups and downs, the system is still on track to meet its fiscal goals this year. And Wednesday’s report didn’t include more recent stock market gains in May.
The pension system has endured plenty of stock market volatility in recent years. At the beginning of the COVID-19 pandemic in 2020, the system lost $15 billion in assets in a few months.
It soared to new heights as the market rebounded, then lost another $15 billion as stocks dipped in the second half 2021 and early 2022. The pension system had again rebounded by last year.
TRS Executive Director Buster Evans said the pension system is designed to smooth out good and bad years over time.
“Our teachers should be very confident that our plan is able to meet its obligations,” Evans said.
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