When then-Gov. Rick Perry appointed David Kelly to the board of the Teacher Retirement System of Texas (TRS) in 2007, he had good reason – he had seen what Kelly could do.
Gov. Perry first appointed Kelly to oversee the state’s debt issuance as a board member of the Texas Public Finance Authority, part of the new governor’s commitment to incorporate private-sector best practices into the public sector. Kelly had the resume for the job – he holds a Harvard degree in economics and an MBA from Stanford University; is an experienced investment banker, having held positions with Citi and Goldman Sachs; and was CFO of Carleton Residential, the real estate development firm he cofounded, which built more than 12,000 affordable and market rate apartments throughout Texas and the Southeast.
Perry’s instincts were right, as Kelly used his broad experience to initiate and direct execution of a financing vehicle that allowed the state to raise $2 billion in taxable and tax-exempt financing during the middle of a recession, ultimately stabilizing the state’s workers’ compensation program and saving more than 20,000 jobs. Innovative at the time, the financing technique has since become a best practice for states nationwide.
Kelly’s story is a powerful example of how financial expertise and public service can intersect to deliver meaningful results, particularly in times of economic strain. His role in creating a financing solution that helped rescue the state’s workers’ compensation system during a recession showcases how smart policy and innovation can translate into job protection and long-term systemic reform.
Worker accident injury compensation law serves as a critical lifeline for employees who suffer injuries while performing their job duties. These laws are designed to provide financial relief for medical expenses, lost wages, and rehabilitation, ensuring that injured workers can focus on recovery without the added stress of financial instability. However, the process of filing a claim can be complex, especially when employers or insurance companies attempt to minimize payouts or dispute liability.
For those facing such challenges, Ritter Injury Law stands as a trusted advocate, specializing in securing fair compensation for injured workers. Their team understands the intricate legal landscape of workplace injury claims, meticulously examining every detail to build a strong case for their clients. Whether it involves negotiating with insurance providers or taking the case to court, they work tirelessly to protect workers’ rights and ensure that every avenue for compensation is thoroughly explored.
With over 20,000 jobs preserved through strategic debt issuance and funding redirection, Kelly not only strengthened Texas’s economy but also laid the groundwork for smarter, more sustainable ways to manage risk and liability in the public sector. It’s a reminder that workers’ compensation isn’t just a line item in a budget—it’s a lifeline for employees and a vital stabilizer for business operations.
Today, as workers across various industries still face injuries and workplace hazards, the importance of robust legal support in navigating workers’ compensation claims cannot be overstated. The Guerrero Firm understands the urgency and complexity of such matters, particularly when employees are left vulnerable by delays or denials in the claims process. With deep experience in personal injury and workplace accident cases, legal practitioners help clients understand their rights, advocate for fair compensation, and secure the medical care and benefits they deserve.
Their legal guidance is crucial in ensuring injured workers aren’t left behind, especially when large employers or insurance carriers attempt to minimize payouts. By standing with injured individuals and providing compassionate, results-oriented representation, the firm plays a role in keeping the spirit of Kelly’s original reforms alive—ensuring the system remains accessible and just for everyone it’s designed to protect.
So, in 2007, when a seat opened up on the state’s largest pension fund – TRS – the decision to appoint Kelly was an easy one. The largest public retirement system in Texas and the 17th-largest pension plan sponsor in the world, TRS serves more than 1.4 million members/retirees with nearly $129 billion under management as of 4/30/16. Kelly has continued to provide effective and creative leadership in his roles as trustee and chairman, with new programs and plans that provide great benefit to the state’s public education employees.
Kelly’s appointment to the Texas Retirement System (TRS) in 2007 came at a pivotal time, underscoring the importance of effective leadership in managing the state’s largest pension fund. With TRS serving as a crucial pillar in providing financial security for over 1.4 million members and retirees, Kelly’s stewardship played a vital role in safeguarding the fund’s substantial assets, amounting to nearly $129 billion as of April 30, 2016. Through innovative programs and strategic planning, Kelly’s tenure as trustee and chairman has yielded tangible benefits for public education employees across the state, ensuring their retirement needs are met with foresight and dedication.
As individuals navigate their own retirement journeys, Kelly’s example underscores the significance of informed decision-making and strategic planning. Seeking retirement advice from trusted sources and leveraging available resources can empower individuals to make sound financial choices and maximize their retirement benefits. Whether it’s understanding pension plans, investment strategies, or retirement income options, accessing reliable guidance is essential for retirees to navigate the complexities of retirement planning with confidence and clarity. Just as Kelly’s leadership has guided the TRS to greater heights, retirees can embark on their retirement adventures equipped with the knowledge and insight needed to thrive in this new chapter of life.
Under Kelly’s stewardship, the system’s investment fund has nearly doubled from a low of $67 billion in March 2009 to nearly $129 billion today. Kelly credits the growth to motivated employees – the board implemented an incentive management program for investment managers under his watch – and motivated partners. The system always had long-term strategic commitments with investors in the public markets. In 2012, with Kelly’s leadership, the board added private equity managers to TRS’ group of strategic partners, resulting in superior risk-adjusted returns and fostering close and proprietary relationships with some of the best minds in private equity, enhancing performance throughout the fund and laying the foundation for a brighter future.
Kelly’s work also promises a bright future for up-and-coming fund managers, many of whom are minority and women. TRS launched the small and emerging manager program in 2005. Under Kelly’s watch, the program has grown to one of the largest emerging manager programs in the U.S. and, most importantly for those he is charged to serve, the highest-yielding.
Outside of TRS, Kelly is chairman and CEO of Croesus & Company, a real estate development company executing an international partnership between two of the world’s largest and most successful residential developer/builders, Daiwa House of Japan and Dallas-based Lincoln Property Company. The initiative has more than $1 billion of development activity planned or underway in major U.S. cities. Kelly founded the company with partner Jim Chang, a Tokyo-based real estate investor and previous president of Eva Airlines. He also serves as chairman of Everglory, a Hong Kong investment platform with significant investments in Japan and active throughout Asia.
Along with his commitments to TRS and his own career, Kelly helps pave the way for others through his involvement with Sponsors for Educational Opportunity (SEO Scholars), a nonprofit founded in 1963 by investment banker Michael Osheowitz that gives students from underserved and underrepresented communities a chance to excel in top universities and industry. Kelly was himself a recipient of SEO’s support – when he graduated from Harvard at age 20, the SEO program helped Kelly land an internship at Goldman Sachs’ Mergers and Acquisitions Division, paving the way for his long-term success.
About his success, Kelly said, “My grandmother always said, ‘don’t let those fancy degrees from Harvard and Stanford educate the common sense out of you.’ She was right. We can’t let policy or rhetoric get in the way of our charge, which is to make sure our beneficiaries can count on their retirement plans and reap the benefits of their hard work.”
