HARRISBURG -- The Board of Trustees of the Pennsylvania Public School Employees' Retirement System voted today to make new private markets investment commitments and to hire an accounting firm.
The Board voted to invest up to $130 million in Insight Partners Fund XIII, a private equity fund; up to $200 million in PIMCO Commercial Real Estate Debt II, a private credit fund; and up to $200 million in LS Power Equity Partners V, a private infrastructure fund.
The Board hired the accounting firm CliftonLarsonAllen to conduct an audit of the system's controls using SOC 1 Type 2 standards established by the American Institute of Certified Public Accountants. Act 128 of 2020 mandated the state's pension funds institute a control audit of its choosing, and the PSERS Board selected a Soc 1 Type 2 procedure.
Finance & Actuarial Updates
In other business, Chief Financial Officer Brian Carl provided an update of the System's finances as the 2022-23 fiscal year nears its June 30, 2023, close.
- The System's net position was $71.9 billion as of the March 31, 2023, quarter close. That is the partial result of normal benefits and administrative costs being offset by a $1.5 billion gain in net investment income, and normal contributions from employers and members.
- The System continues to receive higher than expected employer payroll growth in 2022-23, which is expected to carry over into the 2023-24 fiscal year that begins July 1, 2023.
- The System's projected 2022-23 net investment return is expected to be positive but is currently tracking below the 7.00% assumed rate of return. Final returns will not be available until the fall.
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, 2022, PSERS had total net assets of $71.9 billion and a membership of about 248,000 active, 247,000 retired school employees and 27,000 vested inactive members.