Torsella issues statement on SERS portfolio moves and reduction in investment return and inflation assumptions
Harrisburg, PA – Pennsylvania Treasurer Joe Torsella today issued the following statement on the announcement that SERS, the Pennsylvania’s State Employees’ Retirement System, will move $2.1 billion of the fund’s public markets portfolio into low-cost passive investments. SERS also announced a reduction in the fund’s long-term investment rate of return and inflation assumptions.
“I applaud SERS for this step toward reducing Wall Street fees paid by Pennsylvania taxpayers and employees, and for adopting a more realistic return assumption for the fund. Since taking office a little over 100 days ago, I have worked to build a better future for Pennsylvanians by putting their interests first. This announcement is a step in that direction for SERS, by saving taxpayer dollars through responsible investment strategies.”
Pennsylvania Treasurer, Joe Torsella, member of the SERS board
The move comes less than a month after Torsella announced that Treasury’s investment team would transition all of Treasury’s $2.4 billion public equity investment holdings to passive investment strategies, savings $5 million per year in fees, and just days after Treasurer Torsella held a joint press conference with Governor Wolf, urging both SERS and PSERS, the Pennsylvania Public School Employees’ Retirement System, to reduce fees. Torsella and Wolf’s proposals were detailed in a joint letter sent to both boards.
“I hope and expect there will be further progress toward the commonsense fee reductions the Governor and I proposed at both SERS and PSERS in the months ahead. We need to continue this momentum, and keep more of Pennsylvania’s money working for Pennsylvanians.”
Pennsylvania Treasurer, Joe Torsella