Tennessee Consolidated Retirement System reports strong 10.2% investment return for FY25

NASHVILLE – The Tennessee Consolidated Retirement System closed out the 2025 fiscal year with a healthy 10.2% investment return, significantly outperforming the plan’s 6.75% assumed rate of return.

These favorable returns helped increase the value of the portfolio by $5.3 billion in a single year, bringing the total value of the TCRS portfolio to $74.9 billion as of June 30, 2025.

TCRS is the defined benefit pension plan serving over 400,000 active and retired state, higher education, and participating local government employees, as well as K-12 public teachers. The state pension provides a lifetime retirement, and survivor and disability benefits for employees and their beneficiaries. 

In FY25, TCRS paid $3.4 billion in retirement benefits to 164,868 retirees across the state, with 92% residing in Tennessee. These benefits provide a meaningful economic impact in all 95 counties across the state.

“Our plan’s continued strength is the result of disciplined financial stewardship and the unwavering support of our Governor and General Assembly, who ensure the plan is fully funded year after year,” said State Treasurer David H. Lillard, Jr. “This year’s investment income is a testament to our commitment to the active and retired members of the TCRS pension plan.”

TCRS was ranked as the second best-funded public pension plan in the nation in a State Policy Report published this month by Federal Funds Information for States. TCRS is fully funded at over 100%, meaning the state’s public pension has enough assets to pay all current and future promised retirement benefits. Tennessee is one of only three states to exceed full funding.

For every $100 paid today in retirement benefits, $69 comes from investment earnings. The Tennessee Department of Treasury’s in-house Investments Division, led by Chief Investment Officer Michael Brakebill, manages the majority of TCRS assets internally. This approach reduces costs and leverages a team of highly credentialed investment professionals with extensive education and certifications, and vast experience in both public and private sector investing. The TCRS portfolio is structured to be naturally conservative and broadly diversified to minimize risk while delivering long-term value.

“Our investment team takes great pride in managing a well-diversified portfolio that delivers strong performance both in the short term and over the long haul,” Mr. Brakebill said. “These consistent gains not only support the delivery of excellent benefits to our members, but also help reduce long-term funding risks for the plan.”

For the 37th consecutive year, the TCRS was awarded a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its FY24 Comprehensive Annual Financial Report, marking the highest form of recognition in governmental accounting and financial reporting.

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