Divided Pennsylvania Pension Trustees Back Off of $1.1Bn in Private Investments

Trustees of Pennsylvania’s largest public pension on Friday backed off from voting on almost $1.1 billion in new fund commitments amid disagreement over the system’s leadership and its use of high-cost private investments.

While one investment was approved in a public session, another five that had been scheduled for votes by the investment committee of the $64 billion Pennsylvania Public School Employees’ Retirement System were withdrawn. All the transactions were recommended to the board by the pension’s investment staff.

The pension is currently conducting an internal probe and has hired multiple law firms and an outside consultant to provide oversight and advice while it deals with the investigation.

Source: Wall Street Journal