Subpoenas reviewed by Spotlight PA and The Philadelphia Inquirer lay bare the scope of the federal investigation into Pennsylvania's $64 billion public school pension fund.
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The Pennsylvania Public School Employees Retirement system has hired a management firm amid a federal investigation due to a 2020 miscalculation,
The fund hired Verus Investments, a Seattle-based firm that will take over “monitoring and oversight of investment,” the job previously done by PSERS Chief Investment Officer James Grossman.
Grossman has not resigned, however, the fund considers this an emergency hire to monitor and oversee investments during “internal and external investigations” of PSERS investments, the fund told PennLive.
The fund reversed its previous stance of telling employees the investment meant they would not have to contribute high payments to support their retirement on Monday.
PSERS and its troubles - A guide to the woes facing Pa.’s biggest pension plan Joseph N. DiStefano, Craig R. McCoy, The Philadelphia Inquirer
For the last month, the state’s largest pension fund has been embroiled in a scandal of its own making.
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The fund’s board admitted on March 12 that it had made a potentially costly mistake, endorsing an inflated figure for its return on investments, an error that could affect future funding for one of the state’s most expensive programs.
The plan oversees the pensions for around 250,000 retired teachers and other local school workers, and an equal number of working educators who pay into it. It has been underfunded since state leaders in the early 2000s boosted benefits without putting aside money to pay for them, leaving a deficit that has grown to more than $40 billion, despite growing public subsidies. PSERS managers have invested aggressively to fill the gap; poor results have sparked increasing