Pennsylvania State Employees' Retirement System, Harrisburg, approved a commitment of up to €50 million ($54 million) to CVC Capital Partners Fund VIII, a European buyout fund, confirmed Pamela Hile, spokeswoman for the $30.9 billion pension fund.
The commitment was approved at the board's Tuesday meeting.
Also at its meeting, the board approved lowering the employer contribution rate to 33.48% from 33.59% after PennSERS' actuary, Korn Ferry, provided the pension fund with its actuarial valuation report. PennSERS Executive Director Terrill J. Sanchez said in a news release that the drop was due "to the fund's strong 18.8% investment return last year."
The board also agreed to expand the chief investment officer's authority to execute certain investment actions on its behalf until Dec. 31. Specifically, the CIO can manage cash and adjust holdings in the public market portfolios when needed. James G. Nolan is acting CIO.
"This action allows us to operate more efficiently during this volatile market environment," board Chairman David R. Fillman added in the release.
Finally, the PennSERS board approved an agreement with Pennsylvania State University allowing the University Park, Pa.-based school to make a one-time lump-sum payment of $1.1 billion to prefund a portion of its pension liabilities. The payment will go to PennSERS' general assets.
