The City of Austin Employees’ Retirement System (COAERS) provides defined benefit pension benefits to general employees of the City of Austin, Texas. Managing approximately $4 billion in assets, COAERS serves over 13,000 active members, retirees, and beneficiaries. The system covers non-uniformed city employees, with separate systems serving police and fire personnel. COAERS is governed by a Board of Trustees.
Investment Strategy
COAERS maintains a diversified investment portfolio across domestic and international equities, fixed income, real estate, and alternative investments. The Board of Trustees sets asset allocation policy based on actuarial analyses, liability projections, and capital market assumptions. The fund’s investment objective is to generate long-term returns sufficient to meet pension obligations while managing risk and maintaining adequate liquidity for benefit payments. COAERS utilizes external investment managers across asset classes, with oversight from internal staff and external investment consultants. The fund has benefited from Austin’s economic growth and strong employment base, which have supported contribution inflows and membership growth.
Private Markets Approach
COAERS allocates approximately 12% of its portfolio to alternative investments, including private equity and real estate. The private equity program includes commitments to buyout, growth equity, and diversified strategies managed by established institutional managers. The fund has built its alternatives program over time, maintaining diversification across vintage years and strategies. The real estate allocation includes investments in commingled funds spanning core and value-add strategies across property types and geographies. COAERS selects its private markets managers through a competitive due diligence process and monitors partnerships through regular reporting and performance reviews. The board publishes annual reports that detail the fund’s investment allocations and performance.
Frequently Asked Questions
What is the City of Austin Employees' Retirement System?
COAERS is a defined benefit pension fund providing retirement, disability, and death benefits to general employees of the City of Austin, Texas. The fund manages approximately $4 billion in assets and serves over 13,000 active and retired members.
How does COAERS invest its assets?
COAERS maintains a diversified portfolio across equities, fixed income, real estate, and alternatives. Approximately 12% of assets are allocated to alternative investments including private equity and real estate. The Board of Trustees sets investment policy.
Who is covered by COAERS?
COAERS covers general (non-uniformed) employees of the City of Austin. Sworn police and fire employees are covered by separate retirement systems. Eligible employees include administrative, professional, and operational city staff.
