Pension Plan Design

Our pension asset allocation is designed to meet long-term obligations, protect members’ benefits, and moderate risk and volatility.

We believe compounding investment returns over time is critical for growing plan assets and fulfilling our mission. Diversification is our primary focus to moderate risk and volatility.

We invest with the specific objective of meeting our assumed rate of return while moderating risk and volatility. We construct the portfolio to be less reliant on public equity and to preserve capital in adverse markets.

Pension Fund Target Asset Allocation

Under the direction of the Utah State Retirement Board, we manage plan assets through economic cycles. The URS DB Plan asset allocation is designed to be less reliant on public equity, more diversified than a traditional portfolio, and has more options to diversify (reduce risk) and generate returns than a traditional portfolio of stocks and bonds.

Actual allocations may vary based on market movement.

Global Equities 35%
Stocks make us part owner and beneficiary of many successful companies around the world.

Fixed Income 20%
Bonds yield a steady stream of income. Short-term securities allow URS ready funds to make advantageous moves and rebalance.

Real Assets 18%
Private market assets including real estate, agriculture, timber, energy, infrastructure, and other natural resources for diversification and inflation protection.

Absolute Return 15%
Diversifying strategies and assets not available in other asset classes.

Private Equity 12%
Private market assets and strategies including buyouts, special situations, venture capital, and growth equity which are expected to enhance portfolio returns over the long-term.

Defined Benefit Pension Assets

As of December 31, 2022, the net position of the pension fund was worth $42.1 billion.

We believe compounding investment returns over time is critical for growing plan assets and fulfilling our mission. Diversification is our primary focus to moderate risk and volatility.

Here’s how the pension fund has grown in recent years.
at fair value (in billions)

$31.9

2017

$31.3

2018

$35.2

2019

$39

2020

$45.1

2021

$42.1

2022

$45.3

2023

Growing to Meet Obligations

Focusing on single-year returns is like staring at an individual pixel of a painting. To appreciate the full picture, you must take a step back.

In 2022, major stock indexes suffered their worst year since 2008, with the S&P 500 Index, for example, falling almost 20%. In this tough environment, the URS Pension Fund suffered relatively small losses — about 5% of its value — compared to peers and the broader investment landscape.

No single year defines the trajectory or overall condition of the fund. If you take the long view, you’ll see consistent, long-term growth through the years. For perspective, the fund grew by $10.2 billion over the last five years, from $31.9 billion to $42.1 billion while making meaningful distributions to plan beneficiaries.

The URS pension fund is designed to anticipate and withstand fluctuating markets, meaning short-term investment gains or losses don’t affect the retirement benefits paid to members.