The board of the Pennsylvania State Employees’ Retirement System made minor adjustments to some of its actuarial assumptions at its July 29 meeting, but maintained its 6.875% long-term assumed rate of return.
The board, in accordance with actuary Korn Ferry, adjusted some demographic and economic assumptions, including career salary increases and annuitant mortality assumptions.
The board of the pension fund also committed $1.5 billion to three fixed-income managers: $500 million each to a core bond strategy product from J.P. Morgan Investment Management, a core fixed-income product from Loomis, Sayles & Co. and a core broad market fixed-income strategy from NISA Investment Advisors.
Penn SERS managed $38.7 billion in assets in its defined benefit plan as of December 31, 2024, providing retirement benefits for 245,000 members.
As of December 31, 2024, the fund allocated 37.4% of its assets to U.S. listed equities, 18.1% to fixed income, 11.5% to international developed market equities, 5.7% to real estate, 5.3% to cash, 2.5% to Treasury inflation-protected securities, 1.2% to emerging market equities and 0.9% to private credit.
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Tags: Fixed-Income, PennSERS, Pennsylvania State Employees Retirement System (SERS)