Audit of the Pension Reserves Investment Management Board (November 13, 2025)

This is a Massachusetts State Auditor performance audit of the Pension Reserves Investment Management Board, covering July 1, 2022 through June 30, 2024.

“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of the Pension Reserves Investment Management Board (PRIM) for the period July 1, 2022 through June 30, 2024.”

Auditors reviewed whether PRIM was checking investment risk, working toward its diversity-related investment manager goal, and reviewing fees and investment returns.

“The purpose of our audit was to determine the following:”

PRIM manages investments tied to public employee retirement money, so its oversight affects pension funding and risk for Massachusetts retirement systems.

“The PRIT Fund, established by the same legislation, is the investment portfolio for the assets of the Massachusetts State Employees’ Retirement System, the Massachusetts Teachers’ Retirement System, the State Retiree Benefits Trust Fund, and other Massachusetts retirement systems that elect to invest in the fund.”

If you are a Massachusetts taxpayer, public employee, teacher, retiree, or local retirement system member, this audit is about how the state oversees pension investments and related costs.

“PRIM serves as a professional investment service for public employees.”

For all three areas the auditors tested, PRIM did enough to satisfy the audit criteria.

“Therefore, we concluded that, during the audit period, PRIM met the relevant criteria regarding our objectives.”

The report does not list findings or required fixes; PRIM is expected to continue its normal oversight and reporting work.

“Our audit revealed no significant issues that must be reported under generally accepted government auditing standards.”

The audit gives the public an independent check that PRIM reviewed emerging manager performance, worked toward its investment manager diversity goal, and reviewed fees and returns during the audit period.

“For this objective, we found no significant issues during our testing.”

“Net of fees” means the investment value after expenses are subtracted; “gross of fees” means before those expenses are subtracted.

“In contrast, the term net of fees refers to the value of assets under management after deducting investment-related expenses from the gross value.”