HARRISBURG, PA – The Board of Trustees of the Pennsylvania Public School Employees’ Retirement System (PSERS) Thursday voted to approve the 2024-25 fiscal year audited financial statements, considered the Investment Performance Review for period ending June 30, 2025, and authorized two additional investment commitments.
The unmodified independent auditor’s opinion on the 2024-25 fiscal year audited financial statements affirmed that the financial statements “present fairly, in all material respects, the fiduciary net position of PSERS.” The statements show that between fiscal year 2024-25 and fiscal year 2023-24:
- The net position increased by 8.2% to $83.7 billion.
- The fair value funded ratio increased 5.3% to 68%.
- The employer net pension liability decreased by about 7% to $38.3 billion.
“The 2024-25 fiscal year audited financial statements reflect PSERS’ solid fiscal position and continued progress toward long-term stability,” said Finance and Actuarial Committee Chairman Eric DiTullio. “With the funded ratio increasing again this year, it’s clear the system remains on a healthy financial trajectory for our members.”
The Investment Performance Review for the fiscal year ending June 30, 2025, showed a total fund performance of 9.67%, 11 basis points over the board’s investment policy benchmark. The fund also realized an annualized return of 7.48% during the 10-year trailing period as of this date, which compares positively to PSERS’ current 7.0% long-term actuarial assumed rate of return.
“During my time at PSERS, the system has continued to make tremendous progress increasing the plan’s long-term stability for the beneficiaries who count on it,” Investment Committee Chairwoman and State Treasurer Stacy Garrity said. “PSERS’ trustees and staff work tirelessly to ensure prudent investment decisions are made to benefit Pennsylvania’s hardworking teachers and school employees.”
The board also approved new investment commitments not to exceed $100 million to Oak HC/FT Partners VI, L.P. and $90 million to Graceada Partners Fund IV-QP L.P.
###
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.