HARRISBURG, PA – The Board of Trustees of the Pennsylvania Public School Employees' Retirement System (PSERS) voted today to approve the results of a comprehensive independent audit that gave PSERS the highest rating possible.
CliftonLarsonAllen conducted an audit of PSERS’ system's controls, as mandated by Act 128 of 2020, using SOC 1 Type 2 standards. The audit delivered the unqualified opinion, the top level of assurance, confirming that the system’s controls were sound and effective throughout the testing period.
“Few public pension systems undergo this type of rigorous audit. Achieving this gold standard rating underscores PSERS’ commitment to strong governance, operational excellence and continuous improvement on behalf of its members. I appreciate the hard work staff put into pursuing this audit, which gives members greater confidence in the security of their retirement,” said Pennsylvania Treasurer Stacy Garrity, who chairs the PSERS Audit, Compliance and Risk Committee.
Also pointing to PSERS’ prudent fund management, the Benefits and Appeal Committee highlighted a 2024 CEM Benchmarking report that revealed PSERS’ total pension administration cost per active member is $112 – approximately 22% lower than the peer average of $143.
“Board members and PSERS’ staff are dedicated to effectively managing the resources entrusted to their care to keep member cost low while continuing to deliver exceptional service. We were pleased to hear those efforts translated and were recognized through the report,” said PSERS Benefits and Appeals Committee Chair Ann Monaghan.
During the board meeting, Chair of the Finance and Actuarial Committee Eric DiTullio announced that PSERS earned another accolade. PSERS received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for its Annual Comprehensive Financial Report for the fiscal year that ended June 30. This was the 42nd consecutive year that PSERS has received this award, which recognizes excellence in governmental accounting and financial reporting.
Two new investment commitments totaling approximately $200 million were also approved:
- $100 million to Park Square Capital U.S. Loan Partners, L.P., private credit
- €100 million to DIF Infrastructure Fund VII SCSp, private infrastructure
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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 Dec. 31, 2024, PSERS had a total net position of about $79.5 billion and a membership of about 256,000 active, 254,000 annuitants and beneficiaries, and 27,000 vested inactive members.
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.