The Tennessee Consolidated Retirement System closed out the 2026 fiscal year with a robust 14.18% investment return, significantly outperforming the plan’s 6.75% assumed rate of return.

These favorable returns helped increase the value of the portfolio by $7.6 billion in a single year, bringing the total value of the TCRS portfolio to $83.4 billion as of June 30, 2026.

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 FY26, TCRS paid $3.57 billion in retirement benefits to 167,160 retirees across the state, with 91.5% residing in Tennessee. These benefits provide a meaningful economic impact in all 95 counties across the state.

“This outstanding investment performance reflects years of careful investment planning, responsible management, and steadfast support from our state leaders,” said State Treasurer David H. Lillard, Jr. “Their commitment to a fully funded pension system empowers us to safeguard the retirement security of the thousands of Tennesseans who rely on TCRS.”

Tennessee is one of the top-funded public pension plans in the nation. 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.

For every $100 paid today in retirement benefits, $70 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.

“This year, the market struggled with the impact of tariffs, geopolitical instability, and rapid technological change,” Mr. Brakebill said. “Even with these concerns, we were pleased with strong investment results, which provide a solid foundation for the pension fund.”

The Treasury Investments Division was recently honored with the Markets Group Team Constellation Award. This national award recognizes investment teams that execute strategies generating consistent risk-adjusted returns. The award highlights the division’s thoughtful long-term investment approach, strong risk oversight, teamwork, and commitment to improving. These efforts have helped keep TCRS as one of the strongest funded pensions in the country.

For the 38th consecutive year, the TCRS was awarded a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its FY25 Comprehensive Annual Financial Report, marking the highest form of recognition in governmental accounting and financial reporting.