TRSL outperforms peers in latest benchmarking study

December 6, 2016

Baton Rouge—The Teachers’ Retirement System of Louisiana (TRSL) saved more money, achieved higher returns, and provided better services than its public plan counterparts, according to the latest results from an independent benchmarking firm that studies public pension systems.

Analysis conducted by the Toronto-based CEM Benchmarking, Inc. compares TRSL against similarly sized U.S. pension systems in the areas of investment performance and pension administration for data collected from Fiscal Year 2015.

“This study is truly a 360-degree view of everything we do in our investment of assets and our processing of retirement benefits,” said TRSL Director Maureen H. Westgard. “TRSL is the only retirement system in the state to participate in a rigorous, third-party analysis of our operations. We use the results as a tool to ensure we manage our resources efficiently and effectively.”

CEM Benchmarking found that TRSL administers a high value, low cost investment program. Specifically, TRSL saved $11 million compared to the median cost of its peers, given the same asset allocation, primarily because TRSL has been able to negotiate lower investment management costs. Furthermore, in an analysis of short- and long-term investment performance, five years and 17 years respectively, TRSL achieved higher investment returns than the median returns of U.S. public plans in both time periods.

In the area of pension administration, TRSL’s cost per member was $90 compared to its peer average of $112. The retirement system also outscored its peers in the area of customer service primarily because of its efficiency in processing retirement benefits and educational resources offered to members.  

CEM Benchmarking conducts separate analyses for investments and pension administration. TRSL’s investment program is compared with 163 other U.S. pension funds as well as a peer group of 15 U.S. funds with a median size of $17 billion. In the area of pension administration, TRSL is compared with 72 other retirement systems, includ­ing a peer group of 12 pension systems.