HARRISBURG, Pa., May 3, 2017 /PRNewswire-USNewswire/ -- 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," said Torsella, who as Treasurer is a member of the SERS board. "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."
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," said Torsella. "We need to continue this momentum, and keep more of Pennsylvania's money working for Pennsylvanians."
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The Pennsylvania Treasury is an independent department of state government led by the state treasurer, who is elected every four years. The department's primary duty is to safeguard and manage the state's public funds. It invests state money to generate income on behalf of the citizens of Pennsylvania, reviews and processes payments for state government agencies, and serves as custodian of more than $100 billion in state funds. Key Treasury programs include Unclaimed Property, PA 529 College Savings Program and the Board of Finance and Revenue. To learn more visit patreasury.gov.
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SOURCE Pennsylvania Treasury Department