The Pennsylvania Public School Employees’ Retirement returned 11.74% in calendar year 2025, the fund’s board of trustees announced during the fund’s Thursday investment committee meeting.
Over the past three, five and 10 years, PSERS reported annualized returns of 9.58%, 8.10% and 8.53%, respectively, outperforming the fund’s long-term actuarial assumed rate of return of 7%.
“PSERS’ solid performance highlights the value of maintaining a diversified investment strategy and a disciplined approach,” said PSERS Board of Trustees Chair Richard Vague, in a statement.
Additionally, the board of PSERS approved a total of $425 million in commitments to three managers, including $200 million to LS Power Equity Partners IV from LS Power Group, $150 million to DRA Growth and Income Fund XII from hedge fund DRA Advisors, and $75 million to Warwick V LP from Warwick Partners.
As of June 30, 2025, PSERS was responsible for the retirement benefits for 262,000 active members, 255,000 annuitants and beneficiaries and 26,000 vested inactive members. The fund, founded in 1919, offers defined benefit and defined contribution plans for public school employees in the state of Pennsylvania.
The fund managed $85.3 billion assets, as of December 31, 2025, a spokesperson for PSERS said. The fund allocated 32.2% of it’s portfolio to public equity, 23.8% to fixed income 11.8% to private equity, 11.8% to private real assets, 10.3% to public real assets, 6.9% to private fixed income, 2.3% to cash, and 0.9% to opportunistic investments.
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Tags: Pennsylvania, Pennsylvania Public School Employees Retirement System (PSERS)