One in 10 Iowans currently, or at some point in the future, will depend on the Iowa Public Employees' Retirement System (IPERS) for part of their retirement income. With more than 400,000 members and well over 100,000 current retirees, it's no small task to lead the $40 billion-plus fund. Charged with that is Greg Samorajski, who as the CEO of IPERS helps ensure that Iowa's educators, city, county, and state employees, many university employees and elected officials, and others reap the benefits of the plan. Samorajski spoke with us about his start in the industry, the biggest challenges in his role and a host of other topics.

How did you get started in the investment-management industry?

I started at the Chicago Board of Trade designing new futures products. Eventually, I became the manager of the group that designed new financial futures contracts, including the two-year and five-year note contracts and the fed funds contract. I was there for a number of years and then decided to leave the staff and try my hand at trading. Back then, on the floor we had the open-outcry system, and it went pretty well. Ultimately, I was hired by McKinley Capital, a firm in Alaska. I don't quite recall how the initial meeting happened, but one thing led to another, and we found ourselves up in Alaska for 23 years. I was with McKinley for a number of those years. I worked as a credit union CFO for a while. Then I was recruited by the state of Alaska to become the Deputy Commissioner of the Revenue Department, which was in charge of tax collection and the investment side of the pension plan. In 2020 I went on to Iowa for my current role.

Private credit is a hot topic. Can you talk about the pension plan's views on that, along with private equity?

We started the private credit allocation several years ago, and in 2020 the Board decided to increase the allocation from about 3% to 8%. We're still in the process of implementing that - it's a long process to identify the managers and negotiate. Even when you hire them it's still a multiyear ramp-up on their part until they are fully able to invest the allocation. In private equity, we're not really trying to take it down, but there has been a lot of appreciation in recent years and there is a denominator effect. In other words, we got a bit overallocated in PE relative to our targets. But there hasn't been a change in policy.

How do you view the broader market backdrop at the moment?

We don't take short-term views on things; we take long-term views. We remain very constructive on the US economy over the long term, and for us that's 30 years or more. The estimates we use for equity returns, which in general reflect the health of the economy, are quite high relative to some of the shorter-term outlooks. As a result, we may have a higher allocation to equities. But we're comfortable with that because we manage for the long run.

What is the biggest concern you hear from your participants?

I don't hear too many. Inflation is always a worry, especially for retirees. But, by and large, I think our participants have been happy. They certainly want to know that the plan is solvent. And remember that members are less concerned about investment performance than they are about whether their checks are written on time. And we have very good funding ratios relative to other states, so we feel pretty good about things.

Are there any legislative changes on the horizon that could significantly impact the retirement landscape, or any that you would like to see?

In Iowa, the legislature and Governor create the rules and regulations that govern IPERS. My and the staff's role is to administer the plan according to those. Historically, when the legislature has considered bills that have the potential to impact our investment or benefits programs, I appreciate that lawmakers collaborate with IPERS to understand that impact. We anticipate the same spirit of collaboration as we enter the legislative season in 2025.

Diversity within the ranks of asset management is an important consideration at PGIM, and throughout the industry overall. Can you offer your views on the role diversity plays in your business?

We do have an affirmative action policy, and I take that very seriously, as I do all state policies. We really make an effort to be as diverse as we can. I think our record there is pretty good. Just as one example, most of the senior managers who report to me are females. Employees across our programs represent various ethnic backgrounds. We'll continue to make as much progress as we can - there's always more to do.

What's the biggest challenge in your role?

The interface between employers, members, and the pension benefits system. The systems are evolving rapidly, and we're all going to have to make changes. And those changes may be difficult for some people, though necessary. So that's a major operational challenge. And there are always challenges on the investment side, trying to find the best managers and finding the best people to hire.

What do you like to do to unwind outside of the office?

I mostly just work. But seriously, I like to read and I like to work out in a variety of ways. I'm a big football fan, but mostly pro football, which is heresy in Iowa.