HARRISBURG, PA – The Pennsylvania Public School Employees’ Retirement System (PSERS) issued the Investment Performance Review for the period ending Dec. 31, 2025, which highlights the system’s strong long-term investment performance.
The Board of Trustees received the results during its Investment Committee meeting on Thursday, March 19, which was held before the full board meeting.
The review showed PSERS’ total fund performance of 11.74% for the one-year period, 9.58% over three years, 8.10% over five years and 8.53% over 10 years. This compares positively to PSERS’ current 7.0% long-term actuarial assumed rate of return.
“PSERS’ solid performance highlights the value of maintaining a diversified investment strategy and a disciplined approach,” said PSERS Board of Trustees Chair Richard Vague.
Vice Chair Susan Lemmo added, “Performance over the long run is what matters most, and these results demonstrate solid outcomes to support Pennsylvania’s public school employees.”
Additionally, in the actuarial valuation report for the fiscal year ending June 30, 2025, PSERS showed continued improvement in the system’s financial position as long-term funding levels strengthened and membership grew.
The board also approved new investment commitments in the amounts of $150 million to DRA Growth and Income Fund, $200 million to LS Power Equity Partners IV and $75 million to Warwick V LP.
In other business, the board approved starting contract negotiations with Gallagher Benefits Services Inc. for actuarial services following a request for proposals. Gallagher currently serves as PSERS’ actuarial service provider.
Additionally, the board approved Luminare Health to provide its third-party administrative services for the Health Options Program and Premium Assistance. Luminare, which previously served as a third-party administrator, was chosen following a competitive bidding process.
The trustees also adopted PSERS’ 2025 Stress Test Report, which evaluates the system’s long-term financial resilience under a wide range of policy, economic and demographic scenarios. Required under Act 128 of 2020, the report will be submitted to the governor, General Assembly, and the Independent Fiscal Office (IFO) for further review.
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About the Board of Trustees
The 15-member Board of Trustees is an independent administrative board of the Commonwealth. The Board stands in a fiduciary relationship to PSERS’ members regarding investments and disbursements of the system’s funds. The Board’s other functions outlined in the Public School Employees’ Retirement Code include certifying contribution rates, authorizing the system’s actuarial valuation and independent audit, publishing an annual financial statement, and overseeing the operational activities performed by the system’s executive director and chief investment officer.
About the Pennsylvania Public School Employees' Retirement System
PSERS, founded in 1917, began operations in 1919 to oversee a statewide defined benefit pension plan for public school employees. PSERS' role expanded upon the passage of Act 5 of 2017 to include oversight of two new benefit options consisting of defined benefit and defined contribution (DC) components and a stand-alone DC plan. As of June 30, 2025, PSERS had a total net position of about $83.7 billion and a membership of about 262,000 active, 255,000 annuitants and beneficiaries, and 26,000 vested inactive members.