The changes are to be "implemented prudently over the course of months or years," the news release said.
"The board's decision to change the asset allocation by adding more public equity over time will help increase PSERS net investment income in positive market conditions," Christopher Santa Maria, board chairman, said in the news release. "However, this allocation also increases slightly our risk profile in down market conditions."
Other target changes include increases in the targets to public fixed income to 28% from 27% and private real assets to 12% from 11%. Other targets seeing decreases are international equities to 15% from 16%, public real assets to 14% from 17% and private fixed income to 6% from 8%. Explicit leverage was changed -11% from -13%.
The targets to private equity and cash remain unchanged at 12% and 3%, respectively.
Separately, Charles J. Spiller, the pension fund's deputy chief investment officer, non-traditional investments, announced he will retire effective March 11.
"After nearly 28 years with PSERS, I have decided it is time to retire," Mr. Spiller, 69, said in a statement emailed by Mr. Esack. "I am proud to say I have overseen the growth of PSERS' private assets from approximately $1 billion when I became managing director of private markets in 1997, to approximately $29 billion today, and have grown the team from four investment professionals in 1997 to 15 today with consistent outstanding investment performance for PSERS."
The allocation changes and the announcement of Mr. Spiller's retirement come a month after the pension fund's board announced Executive Director Glen R. Grell and Chief Investment Officer James H. Grossman Jr. will retire effective Feb. 28 and May 1, respectively.
Six board members in June had called Messrs. Grossman's and Grell's removal from their roles after a federal investigation had been launched into PSERS following the board's discovery of an error in its reported investment figures.
Robert Devine, fixed-income managing director at the system, was named acting CIO on Dec. 10. "I look forward to working with the board to implement this new asset allocation in the best interest of PSERS members and constituents," Mr. Devine said in the news release issued Dec. 18.
As of June 30, PSERS' actual allocation was 24% public equities, 22.6% public fixed income, 20.4% public real assets, 17.4% private equity, 8.8% private real assets, 8.3% absolute return, 8.2% private fixed income, 4.6% cash and cash equivalents, 0.1% tail risk mitigation and -14.5% financing.