Harrisburg, PA – Pennsylvania Treasurer Joe Torsella today praised the Public School Employees’ Retirement System (PSERS) for adopting a series of resolutions that seek to reduce investment fees paid to external managers; identify operational savings for the Commonwealth’s two largest pension systems; and enhance supplemental retirement savings opportunities for public school employees.
"I am pleased that the PSERS Board is supporting these actions in order to provide long-term savings to Pennsylvania taxpayers. I look forward to working with PSERS to continue this momentum and find additional opportunities for cost savings and greater efficiencies."
Pennsylvania Treasurer, Joe Torsella
The PSERS board unanimously adopted three resolutions presented by Torsella directing PSERS to develop a plan to reduce external investment fees over a three-year period; identify shared operational cost savings opportunities and efficiencies with its sister pension board (SERS); and explore the expansion of supplemental retirement savings opportunities for all public school employees.
The resolution comes after Governor Wolf and Treasurer Torsella sent a joint letter to the boards of SERS and PSERS to encourage them to reduce investment costs over three years and implement administrative efficiencies.
"I applaud Treasurer Torsella for his leadership in working with me to bring reform and savings to our pension system. The evidence is clear that passive investment can yield similar or even better returns than Wall Street money managers and reducing these fees could save millions for the funds and taxpayers over the long-term."
Pennsylvania Governor, Tom Wolf
"While PSERS already invests 37% of our $52.9 billion total net assets internally, without paying any external money manager, we agree that further reductions of investment and operating costs will ultimately benefit the 500,000 Pennsylvania school employees who pay into PSERS and rely upon us to prudently manage the Fund. We appreciate Governor Wolf and Treasurer Torsella’s leadership and the PSERS Board’s support for these initiatives."
Executive director of PSERS, Glen R. Grell
Treasury has already taken the lead on lower-cost investing. Treasurer Torsella announced in April that he would transition all of Treasury’s $2.4 billion public equity investment holdings to a passive investment strategy, saving an estimated $5 million per year in fees (approximately $195 million in total savings when compounded over 20 years).