Pennsylvania State Employees slates $300 million, reduces assumed rate of return

Pennsylvania State Employees' Retirement System, Harrisburg, approved three alternative commitments totaling up to $300 million, confirmed Pamela Hile, spokeswoman for the $27 billion pension plan.

At its Wednesday meeting, the board approved a commitment of up to $100 million to Silver Lake Partners V, a buyout fund focused on large-scale business in the technology, technology-enabled and related growth industries.

The board also approved a commitment of up to $100 million to Wind Point Partners VIII-A, a buyout fund that invests across industrial products, business services and consumer products.

Finally, the board committed up to $100 million to Oak Street Real Estate Capital Fund IV, a real estate fund that invests in investment grade or equivalent single-tenant, free-standing triple-net or double-net lease assets.

Separately at its meeting, the board reduced the long-term investment rate of return and the inflation assumptions.

The board reduced the assumed rate of return to 7.25% from 7.5% and the annual assumed rate of inflation to 2.6% from 2.75%, effective with the Dec. 31, 2016, actuarial valuation to be published in June.