PSERS Had a Good Investment Year

PSERS Had a Good Investment Year

Our most recent Brief covered the investment portfolio performance for the City of Pittsburgh’s Comprehensive Municipal Pension Trust Fund (CMPTF).  That covers the employees of the City of Pittsburgh.  School employees in the Pittsburgh Public Schools participate in the Public School Employee Retirement System (PSERS) along with employees in all other school districts in Pennsylvania (PSERS reported 257k active employees in June of 2016, many more than the City’s 7.4k).

Both systems, though very different in size, are close in funded ratio (PSERS was 57% in June of 2016), rely on employee and employer contributions and earnings on investments for funding.  Just recently PSERS announced that in 2017 $6.2 billion (12.3%) was added in investment income.

As stated by the system’s chief investment officer the gain far outpaced what the normal assumption of 7.25% projected.  This chart shows how investments performed in the quarter, fiscal year to date, and calendar year to date along with longer time frames of three, five, and ten years.  In calendar year 2016 the system’s investments earned $4.8 billion (10.7%).