The Tucson Supplemental Retirement System (TSRS) provides supplemental retirement benefits to employees of the City of Tucson, Arizona. Managing approximately $1 billion in assets, TSRS operates alongside the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS), providing additional retirement income to eligible city employees. The system is governed by a Board of Trustees.
Investment Strategy
TSRS maintains a diversified investment portfolio across domestic and international equities, fixed income, and alternative investments. The Board of Trustees establishes asset allocation policy based on actuarial analyses and capital market assumptions, targeting returns sufficient to fund supplemental benefit obligations. Given the system’s comparatively smaller scale, the investment approach emphasizes cost-effective implementation and diversification across asset classes. TSRS utilizes external investment managers for portfolio implementation, with oversight from the board and external consultants. The fund balances growth-oriented equity positions with fixed income holdings to manage volatility and ensure liquidity for benefit payments.
Private Markets Approach
TSRS maintains a modest alternatives allocation of approximately 6% of total assets. The alternatives program includes selective exposure to private equity and real estate through commingled fund vehicles that provide diversification with manageable minimum commitment sizes. Given the fund’s scale, the private markets program is focused on a small number of established manager relationships rather than a broad portfolio of partnerships. The real estate allocation targets core and value-add strategies that provide income and diversification benefits. TSRS evaluates alternative investment opportunities with attention to fee levels, liquidity terms, and manager track record, reflecting the board’s fiduciary focus and the fund’s supplemental benefit structure.
Frequently Asked Questions
What is the Tucson Supplemental Retirement System?
TSRS provides supplemental retirement benefits to employees of the City of Tucson, Arizona. The fund manages approximately $1 billion in assets and operates alongside the Arizona State Retirement System and Public Safety Personnel Retirement System.
How does TSRS invest its assets?
TSRS maintains a diversified portfolio across equities, fixed income, and alternatives. Approximately 6% of assets are allocated to alternative investments. The Board of Trustees sets investment policy with guidance from external consultants.
Who is eligible for TSRS benefits?
City of Tucson employees who participate in the Arizona State Retirement System or the Public Safety Personnel Retirement System are eligible for supplemental benefits through TSRS, providing additional retirement income beyond their primary pension.
