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Pennsylvania Public School Employees' Retirement System

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Pennsylvania Public School Employees' Retirement System (PSERS)
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Basic facts
Location:Pennsylvania
Top official:Terill Sanchez, executive director
Year founded:1917
Active members:247,873
Website:Official website
Total assets under management
2022:$70,646,800,000
See also: Public pensions in Pennsylvania

The Pennsylvania Public School Employees' Retirement System (PSERS) is a Pennsylvania state pension fund that provides retirement, disability, and survivor benefits to the state's public school employees and their beneficiaries. PSERS had $70,646,800,000 ($70.7 billion) in total assets under management as of June 30, 2022.[1]

The management of public pension funds can indicate support or opposition to environmental, social, and corporate governance (ESG) investment practices. ESG investing considers the extent to which corporations align with and promote certain non-financial standards, such as net carbon emission or corporate board diversity goals. States typically hire asset management companies (AMCs) to direct pension plan investments, some of which have ESG commitments that guide their strategies.

This article features the following sections:

Background

See also: Public pensions

The Pennsylvania Public School Employees' Retirement System (PSERS), founded in 1917, invests the assets of and provides funding for the retirement of public school employees. PSERS administers a defined benefit plan, a defined contribution plan, and a hybrid plan that has components of both the defined benefit and defined contribution plans.[2][1]

PSERS served over 247,873 active members and approximately 246,901 retirees and beneficiaries as of March 2024.[1]

Pension performance overview

The following table features information about the funding level and assets managed by the Pennsylvania Public School Employees' Retirement System (PSERS) as of June 30, 2022:[1]

Pennsylvania Public School Employees' Retirement System (PSERS) pension performance (June 30, 2022)
Fiscal year Percent funded Unfunded liabilities Total assets[3]
2022 61.7% $43,948,600,00 $70,646,800,000

Assets and asset management

Environmental, social, and corporate governance
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Asset management companies (AMCs) are hired to manage asset investment for state pension funds across all 50 states.

As of October 2024, 330 AMCs were members of the Net Zero Asset Managers Initiative (NZAM), and 391 AMCs were investor participants in the Climate Action 100+ initiative. Both international asset manager initiatives aimed to align the investment decisions of signatories with the goal of achieving net zero greenhouse gas emissions by 2050.[4][5]

NZAM announced on January 13, 2025, that it was suspending operations and removing the commitment statement and list of signatories from its website. The group said in a statement it would reevaluate its plans and operations in light of “[r]ecent developments in the U.S. and different regulatory and client expectations in investors’ respective jurisdictions.”[6]

List of AMCs contracting with the Pennsylvania Public School Employees' Retirement System

The Pennsylvania Public School Employees' Retirement System (PSERS) contracted with 140 asset management companies (AMCs) or specific funds as of December 31, 2021. Of those companies, 17 were investor participants in Climate Action 100+, and 11 were members of NZAM, as of 2024. The following list identifies the AMCs (and in some cases, the specific funds) contracting with PSERS:[7]

  • Acadian Asset Mgmt (NZAM, Climate Action 100+)
  • Aeolus Property Catastrophe Keystone PF Fund, LP
  • AKAZ Offshore Fund Ltd
  • Alliance Bernstein Global Fixed (Climate Action 100+)
  • Apollo European Principal Fund II
  • Apollo European Principal Fund III
  • Atlantic Trust
  • Avenue Energy Opportunities Fund
  • Avenue Energy Opportunities Fund II
  • Avenue Europe SS III
  • Baillie Gifford (NZAM, Climate Action 100+)
  • Bain Capital Credit Managed Account (PSERS), L.P.
  • Bain Capital Credit Opp. Fund IV
  • Bain Capital Distressed and Special Situations 2013
  • Bain Capital Distressed and Special Situations 2016 (A), L.P.
  • Bain Capital Distressed and Special Situations 2019 (A), L.P.
  • Bain Capital Middle Market Credit 2010, L.P.
  • Bain Capital Middle Market Credit 2014, L.P.
  • BlackRock EMAA (NZAM, Climate Action 100+)
  • BlackRock Emerging Markets Alpha Advantage Fund Ltd (NZAM, Climate Action 100+)
  • BlackRock FIGA High Yield (NZAM, Climate Action 100+)
  • Bridgewater Pure Alpha Fund II, Ltd
  • Bridgewater TIPS (levered)
  • Brigade Distressed Value
  • Brigade Leveraged Capital Structures Offshore Fund, Ltd.
  • Brigade Structured Credit Offshore Fund
  • Capstone Commonwealth Fund
  • Capula Global Relative Value Fund Limited
  • Capula Tail Risk Fund Limited
  • Carlyle Aviation/SASOF II LP
  • Carlyle Aviation/SASOF III LP
  • Carlyle Aviation/SASOF IV LP
  • Carlyle Aviation/SASOF V LP
  • Carlyle Energy Mezz. Opp. Fund
  • Carlyle Energy Mezz. Opp. Fund II
  • Caspian Keystone Focused Fund, LP
  • Caspian Select Credit International, Ltd.
  • Cederberg China Equity Fund
  • Cerberus Levered Loan Fund II
  • Cerberus PSERS Levered Loan Opportunities Fund
  • Clearlake Opportunities Partners II, LP
  • DaVinci Reinsurance Ltd.
  • Effissimo Capital Partners Feeder Fund 2 LP
  • Falko Regional Aircraft Opportunities Fund II
  • Fidelity Institutional Int'l Small Cap (NZAM, Climate Action 100+)
  • FIGS Inc.
  • Fixed Rebalance Account
  • Franklin Templeton Emerging Fixed Income (NZAM, Climate Action 100+)
  • Galton Onshore Mortgage Recovery Fund III, LP
  • Galton Onshore Mortgage Recovery Fund IV, L.P.
  • Garda Fixed Income Relative Value Opportunity Fund Ltd.
  • Gresham
  • Hayfin SOF II USD LP
  • Hayfin Special Opportunities Credit LP
  • HS Group Sponsor Fund II, Ltd.
  • ICG Europe Fund V (NZAM)
  • ICG Europe Fund VI (NZAM)
  • ICG Europe Fund VII (NZAM)
  • Independence Reinsurance Partners Cash
  • Insight Everest Currency Hedge - Int'l Eq (Climate Action 100+)
  • Insight Nevada Currency Hedge - Infra (Climate Action 100+)
  • Insight Nickel Currency Hedge - Private Infrastructure (1Q Lag) (Climate Action 100+)
  • Insight Oxygen Currency Hedge - Private Credit (Climate Action 100+)
  • Insight Sierra Currency Hedge - REIT (Climate Action 100+)
  • Insight Wilson Currency Hedge - PE Internal Co-Invest (1Q Lag) (Climate Action 100+)
  • Insight Yellow Currency Hedge - Private Infrastructure (1Q Lag) (Climate Action 100+)
  • Latitude Management Real Estate Capital IV
  • LBC Credit Partners III
  • LBC-P Credit Fund LP
  • Managed Stock Distribution
  • Marathon Asset Mgmt
  • Nephila/Nimbus Weather Fund
  • Nephila/Palmetto Fund Ltd.
  • Newmarket International Infrastructure Finance Company Fund, L.P.
  • Oberweis Asset Mgmt
  • Oceanwood Investments SPC Co-Invest
  • Oceanwood Opportunities Fund
  • OWS Credit Opportunity Offshore Fund III, Ltd.
  • Park Square Credit Opportunities
  • Park Square Credit Opportunities (Co-Invest)
  • Perry Partners LP
  • PIMCO BRAVO Fund III Onshore Feeder, L.P.
  • PIMCO Commercial Real Estate Debt Fund, L.P.
  • PIMCO Commodity Alpha Fund
  • PIMCO GCOF
  • PIMCO PARS
  • PSERS Active Core Plus Fixed Income
  • PSERS Active High Yield
  • PSERS ACWI x US Fund
  • PSERS ACWI xUS Short Swap
  • PSERS ACWI xUS Swap (Financing)
  • PSERS Cash Management
  • PSERS Commodity Beta (Long)
  • PSERS Commodity Beta (Short/Financing)
  • PSERS Derivatives Collateral
  • PSERS EM IMI
  • PSERS Emerging Markets Index (Long)
  • PSERS Emerging Markets Index (Short/Financing)
  • PSERS Fixed Liquidation
  • PSERS Funded Passive U.S. TIPS
  • PSERS Funded U.S. Long Treasuries
  • PSERS Gold (Long)
  • PSERS Gold (Short/Financing)
  • PSERS Infrastructure Index (Long)
  • PSERS Infrastructure Index (Short/Financing)
  • PSERS Private Credit Internal Co-Invest
  • PSERS Public Infrastructure
  • PSERS REIT Index (Long)
  • PSERS REIT Index (Short/Financing)
  • PSERS Tail Risk
  • PSERS TIPS
  • PSERS TIPS Swap (Long)
  • PSERS TIPS Swap (Short/Financing)
  • PSERS-S&P 400 Index Composite
  • PSERS-S&P 500 Index Composite
  • PSERS-S&P 600 Index Composite
  • QS Investors
  • Renaissance Medici Fund Ltd.
  • Salient
  • Security Capital Preferred Growth
  • Sixth Street Fundamental Strategies Partners
  • Sixth Street Opportunities Partners IV
  • SSG Capital Partners V Sidecar, LP
  • SSG Capital Partners V, LP
  • Steadview Capital Partners LP
  • Summit Partners Credit Fund II LP
  • TCI Real Estate Partners Fund III, L.P. (Climate Action 100+)
  • The Children’s Investment Fund, LP
  • The Varde Scratch and Dent Fund Feed I-A
  • The Varde Scratch and Dent Fund, LP
  • TOP NPL (A)
  • TPG Opportunities Partners II, LP
  • TPG Opportunities Partners III, LP
  • TPG TAO
  • Upsilon Diversified Fund
  • Venor Capital Offshore, Ltd.
  • Wasatch EM Small Cap
  • Wasatch Int'l Small Cap
  • Wellington Management Company (NZAM, Climate Action 100+)
  • Whitehorse Liquidity Partners IV LP

Governance and accountability

This section features information about the 15-member board of trustees that oversees the Pennsylvania Public School Employees' Retirement System (PSERS). The board is specific to oversight of PSERS and does not exercise oversight duties for other state funds.[8]

Board selection method

The board of trustees that oversees PSERS is made up of 15 members. The Secretary of Education, the Treasurer of the Commonwealth, the Secretary of Banking and Securities, and the Chief Executive Officer of PSBA; two legislative members from the Pennsylvania House of Representatives and two members from the Pennsylvania Senate for the duration of their legislative terms; one governor appointee; and six elected members, consisting of three active certified, one active non-certified, one member of the annuitant group, and one member to be elected by the members of the Pennsylvania public school boards serve as trustees.[8]

Board of trustees membership

A 15-member board of trustees oversees the operation and administration of PSERS. The following individuals served on the board as of April 2024:[8]

  • Khalid N. Mumin
  • Stacy Garrity
  • Wendy Spicher
  • Greg Rothman
  • Katie J. Muth
  • Matt Bradford
  • Torren Ecker
  • ​Nathan G. Mains
  • Richard Vague
  • Pamela Brown
  • Jason M. Davis
  • Brian A. Reiser
  • Susan C. Lemmo
  • ​Ann Monaghan
  • Eric DiTullio

See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 1.3 Pennsylvania Public School Employees' Retirement System, "Pennsylvania Public School Employees’ Retirement System Actuarial Valuation Report June 30, 2022," April 2, 2024
  2. ↑ Pennsylvania Public Employees' Retirement System, "Active Member handbook," April 2, 2024
  3. ↑ Note: By default, this refers to the actuarial valuation of total assets. In some cases, the total market value of assets is shown instead. See the cited source for details.
  4. ↑ The Net Zero Asset Managers Initiative, "The Net Zero Asset Managers Initiative," accessed January 26, 2023
  5. ↑ Climate Action 100+, "The Three Goals," accessed June 20, 2023
  6. ↑ Pensions and Investments, "Net Zero Asset Managers initiative to suspend activities in wake of BlackRock departure," accessed January 15, 2024
  7. ↑ Ballotpedia, "Ballotpedia: Asset management data for state-administered pension funds across the 50 states," March 2023
  8. ↑ 8.0 8.1 8.2 "Pennsylvania Public School Employees' Retirement System, "Board of Trustees Biographies," April 2, 2024
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