The University of Puerto Rico (UPR) Retirement Trust has reduced its actuarial deficit from a peak of nearly $4 billion to $3.2 billion, through a disciplined investment strategy and fiduciary governance led by workers. In the most recent audited fiscal year (2025), investment income exceeded total income from university contributions. Kellymar Bermúdez, chief financial officer of the UPR Retirement Trust, said a new investment policy was recently reviewed and approved by the Retirement Board, and that the portfolio was restructured to move assets from higher-risk to lower-risk areas, producing "substantial returns."
About two years ago, the fund carried out a strategic reallocation along those lines. Luis Vicenty, president of the UPR Retirement Board, said the fund did not opt for high-risk investments and instead built a diversified portfolio, and that removing political appointments in favor of worker governance has been vital to protecting capital. Under a legally binding 2016 trust deed, UPR is the final guarantor of all pension payments.
Vicenty said the actuarial debt is owed by the university to the trust, not generated by the fund. If the trust collapsed, UPR would have to absorb 100% of pension payments from its operating budget. Next steps include enforcing certified budget allocations; suspending the 2023 401K plan that keeps university employees from joining the retirement system; personal liability suits against more than 30 UPR officials over $150 million in diverted pension contributions between fiscal years 2023 and 2025; and modernizing facilities and workflows to serve more than 6,000 active employees and retirees.