Pennsylvania State Employees' Retirement System, Harrisburg, approved up to $125 million in commitments to two alternatives funds and rehired its third-party administrator for its voluntary-participation deferred compensation plan and the new defined contribution plan that will be launched Jan. 1.
The board on Wednesday approved a commitment of up to $75 million to Thoma Bravo Fund XIII, a buyout fund focusing on software companies; and a commitment of up to $50 million to TSSP Opportunities Partners IV, a private credit fund managed by TPG, said Pamela Hile, spokeswoman for the $30 billion pension fund.
The commitments are subject to successful contract negotiations.
The board also rehired Empower Retirement to provide third-party plan administration services for its deferred compensation and defined contribution plans. The search for a third-party administrator for its $3.5 billion 457(b) plan was launched in April because the current contract with Empower is set to expire at the end of this month, said Ms. Hile.
PennSERS recently approved a new asset allocation for its investment portfolio. Announced in April, the new long-term target asset allocation is 48% global equities (down from 53% ), 16% private equity (up from 14%), 12% real estate (up from 8%), 11% fixed income (down from 14%), 10% multiasset (up from 8%) and 3% cash (unchanged).