PSERS Board of Trustees Approves New Investments, Reviews Net Investment Performance
05/31/2024
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Steve Esack, 717-418-7526, stesack@pa.gov
HARRISBURG, PA – At public meetings this week, the Board of Trustees of the Pennsylvania Public School Employees' Retirement System (PSERS) reviewed an investment performance report, approved four investment commitments, and announced the healthcare program won a national award.
The net investment report covered the Dec. 31, 2023 quarter end, which coincides, respectively, with the midway point of PSERS 2023-24 fiscal year and the end of the 2023 calendar year market cycles. The report showed PSERS' net quarter performance was 5.86%, the fiscal-year-to-date performance was 3.50%, and the 2023 calendar year performance was 8.62%.
Other key performance points were: 6.80%, 3 years; 8.40%, 5 years; 7.17%, 10 years; 8.12%, 15 years; and 7.05%, 20 years. PSERS' long-term annual assumed rate of return is 7.00%.
On Friday, the Board approved the following investment commitment resolutions, subject to final contract negotiations:
- €150 million to ICG Europe Mid-Market Fund II;
- $300 million to Carlyle Realty Partners X; and
- $300 million to CION Grosvenor Infrastructure Interval Fund.
The board also approved engaging with BNY Mellon as PSERS' securities lending agent.
Board Vice Chair Sue Lemmo, who also chairs the Health Care Committee, announced that the PSERS Health Options Program Prescription Drug Plan received the Pharmacy Quality Alliance (PQA) Excellence in Quality Award. The award is based on a high-quality rating system employed by the federal Centers for Medicare & Medicaid Services (CMS).
“This is the PQA awards' 14th year, and only 1.3% of the 605 eligible Medicare Part D plan contracts qualified for an award," Lemmo added. “This is the fourth time in the last five years PSERS HOP PDP is being recognized."
More details regarding upcoming meeting dates, agendas, and resolutions are available online at PSERS' website.
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 March 31, 2023, PSERS had total net assets of $76.5 billion and a membership of about 251,000 active, 250,000 retired school employees and 27,000 vested inactive members.