Massachusetts Teachers Basics

  • Established 1914
  • Currently open to new hires
  • Plan covers teachers
  • Plan members not covered by Social Security
  • Multiple employer, cost sharing plan

Assets, Participants, and Benefits

Assets at Year-End, Massachusetts Teachers, 2001-2019

Fiscal Year Net Assets (billions)
2001 15.2
2002 14.2
2003 12.8
2004 15.9
2005 17.9
2006 21.5
2007 24.6
2008 23.6
2009 17.3
2010 18.7
2011 21.9
2012 20.9
2013 22.7
2014 25.5
2015 25.4
2016 24.9
2017 27.1
2018 28.8
2019 29.5

Source: Public Plans Database

Number of Actives per Annuitant, 2001-2019

Fiscal Year Massachusetts Teachers US State and Local Pensions
2001 2.7 2.7
2002 2.6 2.5
2003 2.4 2.5
2004 2.2 2.3
2005 2.1 2.2
2006 2.0 2.1
2007 1.9 2.1
2008 1.8 2.0
2009 1.7 2.0
2010 1.6 1.9
2011 1.6 1.8
2012 1.5 1.7
2013 1.5 1.7
2014 1.5 1.6
2015 1.4 1.6
2016 1.4 1.6
2017 1.4 1.5
2018 1.4 1.5
2019 1.4 1.5

Source: Public Plans Database

National data averages are weighted by plan size.

Costs

Employer's Annual Required Contribution as a Percentage of Payroll and Portion Paid for Massachusetts Teachers, 2001-2019

Fiscal Year Portion of Employer ARC paid Portion of Employer ARC left unpaid US Avg Employer ARC ARC as a Percent of Payroll {role:annotation}
2001 13.2 0.0 9.7 11.7 11.7
2002 9.6 0.0 9.9 9.6 9.6
2003 9.5 5.3 11.3 14.8 14.8
2004 7.9 5.5 13.8 13.4 13.4
2005 14.6 0.5 14.4 15.1 15.1
2006 15.0 1.1 14.4 16.2 16.2
2007 15.0 0.3 14.5 15.4 15.4
2008 15.7 0.0 14.0 14.5 14.5
2009 9.8 4.7 14.3 14.5 14.5
2010 12.5 7.5 17.1 20.1 20.1
2011 15.4 0.0 18.3 13.8 13.8
2012 15.0 1.6 20.3 16.7 16.7
2013 15.4 3.7 20.9 19.1 19.1
2014 15.7 3.7 20.1 19.4 19.4
2015 16.5 0.0 20.4 16.5 16.5
2016 17.6 0.0 20.2 17.6 17.6
2017 18.8 0.0 21.2 18.8 18.8
2018 19.3 0.0 22.9 19.3 19.3
2019 20.4 0.0 24.3 20.4 20.4

Source: Public Plans Database

National data averages are weighted by plan size.

Actuarial Funding

Actuarial Funded Ratio for Massachusetts Teachers, 2001-2019

Fiscal Year Massachusetts Teachers National Data
2001 79.2 91.0
2002 76.2 82.6
2003 64.5 77.3
2004 69.6 78.4
2005 67.6 77.2
2006 67.2 78.0
2007 71.0 80.7
2008 73.9 78.7
2009 58.2 70.1
2010 63.0 66.7
2011 66.3 65.8
2012 60.7 63.3
2013 55.7 63.7
2014 56.3 64.7
2015 54.3 65.1
2016 52.8 63.1
2017 52.1 63.8
2018 52.4 63.6
2019 51.7 63.4

Source: Public Plans Database

National data averages are weighted by plan size and reflects the average for plans of similar type and Social Security coverage.

Investments

Asset Allocation for Massachusetts Teachers, 2019

Category Percent
Equities 43.4
Fixed Income 21.5
Private Equity 11.3
Real Estate 9.4
Cash 0.1
Other 0.0
Commodities 3.9
Hedge Fund 10.0
Misc. Alternatives 0.0

Source: Public Plans Database

Asset Allocation for State and Local Pensions, 2019

Category Percent
Equities 47.1
Fixed Income 22.6
Private Equity 9.3
Real Estate 9.1
Cash 1.6
Other 0.0
Commodities 1.9
Hedge Fund 6.8
Misc. Alternatives 1.6

Source: Public Plans Database

National data averages are weighted by plan size.


Asset allocation for Massachusetts Teachers, 2001-2019

Fiscal Year Equities Fixed Income Private Equity Real Estate Cash Other Commodities Hedge Fund Misc. Alternatives
2001 59.7 26.2 5.6 5.7 2.8 0.0 0.0 0.0 0.0
2002 59.2 28.7 5.5 6.3 0.0 0.0 0.2 0.0 0.0
2003 59.7 24.2 5.3 6.6 2.5 0.0 1.8 0.0 0.0
2004 54.5 23.2 5.4 8.4 5.8 0.0 2.8 0.0 0.0
2005 53.8 23.7 6.0 8.1 0.0 0.0 3.6 4.8 0.0
2006 53.2 20.7 6.5 11.0 0.0 0.0 3.5 5.1 0.0
2007 51.6 20.0 6.7 8.6 0.0 0.0 3.2 9.9 0.0
2008 46.7 21.8 8.4 10.9 0.0 0.0 2.1 10.1 0.0
2009 48.4 20.7 9.6 10.9 0.0 0.0 4.7 5.7 0.0
2010 45.6 21.0 10.6 9.1 0.0 0.0 4.1 9.6 0.0
2011 50.3 19.2 10.7 8.2 0.0 0.0 4.0 7.2 0.0
2012 42.6 21.6 12.1 9.7 0.0 0.0 3.9 9.9 0.0
2013 45.3 21.5 11.7 8.2 0.0 0.0 4.0 9.2 0.0
2014 43.1 22.4 11.1 8.9 1.0 0.0 3.9 9.6 0.0
2015 42.7 22.0 11.3 10.0 1.2 0.0 3.8 9.1 0.0
2016 42.2 22.3 11.1 10.4 0.5 0.0 3.3 9.8 0.0
2017 45.7 20.1 10.6 9.1 1.0 0.0 3.7 9.5 0.0
2018 42.2 20.8 10.8 9.0 0.4 0.0 3.4 13.4 0.0
2019 43.4 21.5 11.3 9.4 0.1 0.0 3.9 10.0 0.0

Source: Public Plans Database


Annual Return as of June 30 for Massachusetts Teachers, 2001-2019

Fiscal Year Massachusetts Teachers Assumed return
2001 -6.60 8.25
2002 -6.49 8.25
2003 4.02 8.25
2004 19.43 8.25
2005 13.39 8.25
2006 15.49 8.25
2007 19.95 8.25
2008 -1.82 8.25
2009 -23.91 8.25
2010 12.86 8.25
2011 22.36 8.25
2012 -0.08 8.25
2013 12.73 8.00
2014 17.60 8.00
2015 3.87 7.75
2016 2.30 7.50
2017 13.24 7.50
2018 10.00 7.35
2019 6.13 7.25

Source: Public Plans Database

National data averages are weighted by plan size.

Cash Flows

Cash Flow vs. Total Assets (Millions)
Massachusetts Teachers
2001-2019

Fiscal Year Cash Flow Assets
2001 203.1 15,210.1
2002 -28.7 14,219.1
2003 -144.9 12,836.7
2004 -275.7 15,906.7
2005 -421.0 17,946.3
2006 131.6 21,513.8
2007 -538.1 24,578.5
2008 -393.0 23,553.3
2009 -543.7 17,310.2
2010 -763.2 18,659.9
2011 -742.7 21,896.4
2012 -856.2 20,913.6
2013 -726.8 22,697.3
2014 -930.5 25,538.6
2015 -955.1 25,429.1
2016 -928.4 24,942.1
2017 -903.8 27,138.6
2018 -889.5 28,791.7
2019 -839.5 29,537.0

Source: Public Plans Database


Cash Flow as a Percentage of Assets
Massachusetts Teachers
2001-2019

Fiscal Year Massachusetts Teachers National Average
2001 1.3 -0.9
2002 -0.2 -1.5
2003 -1.1 -1.6
2004 -1.7 -0.5
2005 -2.3 -2.0
2006 0.6 -2.1
2007 -2.2 -2.1
2008 -1.7 -1.9
2009 -3.1 -3.4
2010 -4.1 -3.3
2011 -3.4 -3.2
2012 -4.1 -3.8
2013 -3.2 -3.7
2014 -3.6 -3.4
2015 -3.8 -3.2
2016 -3.7 -3.4
2017 -3.3 -2.9
2018 -3.1 -2.8
2019 -2.8 -2.4

Source: Public Plans Database

National data averages are weighted by plan size.

2019 Financial Reports

Benefits

Website for Massachusetts Teachers benefit descriptions.