How the plan decides where to invest

Investing for such a large plan is complex. Policies help the Teachers' Pension Board of Trustees decide how and where to invest.

Investment beliefs and investment policies guide the board in making investment decisions. Measurement helps the board validate those decisions.

• Investment beliefs: These statements guide the board’s approach to investing. They help the board decide things like what types of assets to invest in and how to measure investment performance. They cover many topics, including responsible investing and risk management.
• Investment policies: These policies outline the board’s investment strategy and how the board manages assets. They are recorded in policies such as the Statement of Investment Policies and Procedures, and the funding policy.
• Measurement: The board measures how investments are performing using benchmarks and return targets. It also uses independent reports by an actuary to measure how investment returns affect the plan’s financial health.