The Pension Reserves Investment Trust ("PRIT") Fund is a pooled investment fund established to invest the assets of the Massachusetts State Teachers’ and Employees’ Retirement Systems, and the assets of county, authority, district, and municipal retirement systems that choose to invest in the Fund. The PRIT Fund was created by the Legislature in December 1983 (Chapter 661 of the Acts 1983) with a mandate to accumulate assets through investment earnings and other revenue sources in order to reduce the Commonwealth’s significant unfunded pension liability, and to assist local participating retirement systems in meeting their future pension obligations. The PRIT Fund merged with the Massachusetts State Teachers’ and Employees’ Retirement System ("MASTERS") Trust on January 1, 1997, in accordance with Chapter 315 of the Acts of 1996. As of June 30, 2010, the assets of the PRIT Fund totaled $41.3 billion (unaudited). The Pension Reserves Investment Management ("PRIM") Board is charged with the general supervision of the PRIT Fund.

The PRIT Fund consists of two investment funds: the Capital Fund and the Cash Fund. Cash, deposited and invested on a temporary basis, is transferred monthly from the Cash Fund to the Capital Fund. Once in the Capital Fund, funds are invested and reinvested across all asset classes under PRIM’s long-term investment guidelines and asset allocation plan. The Capital Fund serves as the long-term asset portfolio and consists of nine accounts: General Allocation Account (which is comprised of the other accounts, except the State Teachers’ and Employees’ Separate Account), Global Equity (Domestic Equity, International Equity, and Emerging Markets), Core Fixed Income, Value-Added Fixed Income, Real Estate, Timber/Natural Resources, Hedge Funds and Private Equity.  The State Employees’ and Teachers’ Separate Account holds the State Employees’ and Teachers’ cash.