A report issued on Dec. 20 by the commission reviewing pension fund investments does not recommend changes in the structure of the Public School Employees’ Retirement System’s Board of Trustees on which five active or retired PSEA members serve.
The report does set forth a series of recommendations intended to save the state’s two pension funds nearly $10 billion over 30 years.
The five-member Public Pension Management and Asset Investment Review Commission was created as part of Act 5 of 2017, a pension reform law that did not change retirement benefits of current school employees. The commission is tasked with making recommendations related to the investment performance and strategies of PSERS and the State Employees’ Retirement System (SERS).
The report’s key findings and recommendations include:
- Maintaining the current governance structure on the PSERS and SERS Boards of Trustees;
- Maintaining required state payments to the retirement systems;
- Establishing a Central Investment Office;
- Enacting legislation mandating annual stress testing; and
- Changes to public reporting of investment expenses, among other recommendations.
During the PSEA House of Delegates in December, delegates adopted a new business item directing the Association to “advocate to maintain the election and current role of PSERS trustees who are elected by PSERS members and annuitants.” The goal of the NBI was to ensure that PSEA members remain part of the board of trustees in order to monitor investment decisions that impact the educators, support professionals, and others who pay into the system.
“The active and retired PSEA members who serve on the PSERS Board of Trustees take the responsibilities of this job very seriously,” said PSEA President Rich Askey. “They serve as the eyes and ears of the men and women who work hard, contribute to their retirement, and want to know that their investment is protected. We’re pleased that the commission’s report doesn’t suggest changes to the board.”
