HARRISBURG, PA – The Board of Trustees of the Pennsylvania Public School Employees’ Retirement System voted Friday to enhance investment transparency, approve six new investments, and adopt the system’s annual financial stress test.
As part of its commitment to transparency, the board approved a resolution endorsing the Institutional Limited Partners Association’s (ILPA) quarterly reporting standards initiative for private markets assets. This ILPA initiative to improve recordkeeping transparency includes an enhanced fee and expense filing template and a new template to better monitor fund performance. PSERS’ investment staff collaborated with other institutional investors, consultants, and fund administrators to assist ILPA in developing these latest reporting standards.
Additionally, the board adopted a new Investment Due Diligence Policy to strengthen internal transparency between trustees and the staff. This policy provides trustees with electronic access to supplemental proprietary and confidential investment data used by staff to manage public and private assets.
“The new ILPA reporting standards and due diligence policy reflect PSERS’ ongoing commitment to transparency and responsible governance,” said Pennsylvania Treasurer Stacy Garrity, who chairs the PSERS Investment Committee. “I’m thrilled that the board and staff are working together to ensure we have the best data available to make prudent investment decisions on behalf of PSERS’ members.”
The board also adopted a new Board Inquiry Policy that formalizes how trustees can request information about the system’s assets, liabilities, and operations. “This policy further strengthens internal transparency between trustees and the staff,” said State Rep. Matt Bradford, chair of the Board’s Governance and Administration Committee. “It sets expectations and provides a clear process for trustees to access materials and for agency staff to respond to such requests.”
The Board also approved six new investments across multiple asset classes:
- Fixed Income: $500 million to NISA Investment Advisors, LLC
- Private Infrastructure: $200 million to I Squared Global Infrastructure Fund IV, L.P.
- Private Credit: $150 million to I Squared Global Infrastructure Credit Fund II, L.P.
- Private Equity: $133 million to Stellex Capital Partners III, L.P., and a related sidecar co-investment vehicle
- Private Equity: $100 million to K6 Private Investors, L.P.
- Private Real Estate: €75 million Realterm European Logistics Fund II SCSp
Trustees also adopted PSERS’ 2024 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.
In other business, investment staff provided an update on the sale of a roughly $935 million portfolio of 16 private equity funds on the secondary market. The sale is expected to be finalized by the end of the month.
Staff also provided an overview of the system’s investment performance for the financial quarter and calendar year ending December 31, 2024:
12/31/2024 | 2024 | 2024-25 | 3 | 5 | 10 |
-0.85% | 8.42% | 3.77% | 3.43% | 7.52% | 7.14% |
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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.