AUSTIN, Texas (AP) - The two largest public pension funds in Texas will pay out more than $9 million in bonuses to investment officers following strong returns this year.
State officials say bonus incentives allow the Employee Retirement System of Texas and the Teacher Retirement System of Texas to draw experienced investors from the private sector.
But the Austin American-Statesman reports Monday that strong returns can't compensate for chronic underfunding and demographic trends that have troubled the pension fund for state employees. If nothing changes, the fund will run out of money to cover promised pension benefits by 2052.
Britt Harris, chief investment officer for the teacher's fund, pulled down the biggest bonus at $374,000. That's on top of his $480,000 salary to oversee the retirement dollars of 1.3 million members.
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