Pennsylvania Public School Employees’ Retirement System: Achievements, Strategies, and Future Plans

The Pennsylvania Public School Employees’ Retirement System (PSERS) has been making significant strides in recent months. From reporting strong returns and reducing investment expenses to unveiling a new strategic plan and appointing key individuals, PSERS is focused on delivering value to its members. In this article, we will delve into the noteworthy achievements, strategies, and future plans of PSERS, shedding light on their commitment to enhancing member satisfaction, financial reporting, organizational culture, risk management, stakeholder communication, and overall alignment with strategic priorities.

Impressive Returns and Cost-Saving Initiatives

PSERS' fiscal year returns and reduction in investment expenses

In the fiscal year that ended on June 30, the Pennsylvania Public School Employees’ Retirement System (PSERS) achieved a commendable return of 3.54%. Furthermore, the preliminary 10-year annualized return stands at an impressive 7.46%, surpassing the long-term assumed rate of return of 7.00%. These returns have propelled PSERS' asset value to a substantial $72.8 billion.

During the investment committee meeting held on October 19, PSERS' Chief Investment Officer Ben Cotton highlighted the remarkable growth in the retirement system's assets, which witnessed a 23% increase between fiscal year 2020 and 2023. Notably, PSERS also managed to reduce its external investment expenses by 30 basis points during this period, resulting in estimated annualized savings of $215 million.

These impressive returns and cost-saving initiatives demonstrate PSERS' commitment to maximizing returns for its members while ensuring efficient utilization of investment dollars.

Unveiling the New Strategic Plan

PSERS' strategic priorities and initiatives

In a significant move, PSERS recently unveiled its first new strategic plan in over a decade, covering the period from 2023 to 2026. The plan outlines six strategic priorities supported by 25 initiatives, many of which are already underway or set to begin soon.

The six strategic priorities identified by PSERS are:

  1. Enhance member satisfaction
  2. Enhance comprehensive and transparent financial reporting and forecasting
  3. Develop organizational culture and staff/leadership competencies
  4. Implement a robust enterprise risk management program
  5. Enhance communication, collaboration, and education of all critical stakeholders
  6. Align all organizational units and functions with PSERS' strategic priorities

PSERS recognizes the need to be agile in response to changes in the operating environment and intends for this strategic plan to be a living document. By prioritizing these areas, PSERS aims to strengthen its operations and deliver enhanced value to its members.

Hiring an External Derivatives Manager

PSERS' partnership with NISA Investment Advisors

PSERS has recently appointed NISA Investment Advisors as its external derivatives manager, responsible for managing up to $10 billion in liquid markets exposure. This strategic partnership will enable PSERS to leverage NISA's expertise in derivatives management to enhance its investment strategies.

By collaborating with external experts, PSERS aims to optimize its investment portfolio and generate favorable risk-adjusted returns for its members.

Key Appointment to the Board of Trustees

Richard Vague's appointment as Vice Chair of PSERS' board

PSERS has named Richard Vague as the Vice Chair of its board of trustees. Vague, a Philadelphia businessman, philanthropist, and author, brings a wealth of experience to the role. Previously serving as the Secretary of the Pennsylvania Department of Banking and Securities, Vague's expertise in finance and governance will contribute to PSERS' strategic decision-making process.

With Vague's appointment, PSERS further strengthens its leadership team, ensuring robust governance and effective oversight of the retirement system's operations.

Conclusion

In conclusion, the Pennsylvania Public School Employees’ Retirement System (PSERS) has achieved commendable returns and implemented cost-saving initiatives, demonstrating their commitment to maximizing value for their members. The unveiling of a new strategic plan further solidifies PSERS' dedication to enhancing member satisfaction, financial reporting, organizational culture, risk management, stakeholder communication, and overall alignment with strategic priorities. The appointment of Richard Vague as Vice Chair of the board of trustees adds valuable expertise to PSERS' leadership team. With these achievements and plans in place, PSERS is well-positioned to navigate the ever-changing investment landscape and continue delivering strong results for its members.

FQA

What were PSERS' returns for the fiscal year?

PSERS achieved a return of 3.54% for the fiscal year that ended on June 30.

What is PSERS' long-term assumed rate of return?

PSERS' long-term assumed rate of return is 7.00%.

What are the strategic priorities outlined in PSERS' new plan?

The strategic priorities outlined in PSERS' new plan are enhancing member satisfaction, comprehensive financial reporting, organizational culture development, enterprise risk management, stakeholder communication, and alignment of organizational units with strategic priorities.

Who is Richard Vague and what role does he play in PSERS?

Richard Vague is a Philadelphia businessman, philanthropist, and author who has been appointed as the Vice Chair of PSERS' board of trustees. His expertise in finance and governance contributes to PSERS' strategic decision-making process.

Post a Comment

Previous Post Next Post