MOTION TO ADJOURN MOTION: 2025-47
By motion of Chair Thall, the board unanimously agreed to adjourn the meeting at 11:36 am
Meeting Date: October 7, 2025
MOTION: 2025-46 FISCAL YEAR 2026-2027 BUDGET
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Finance and Member and Participant Services Committee to approve, for Fiscal Year 2026-2027, the following proposed budgets:
(1) SERS Administrative Budget of up to $43,406,000 inclusive of amounts separately approved by the Audit, Risk, and Compliance (ARC) Committee specifically for the Internal Audit Office;
(2) SERS Investment Budget of up to $12,185,000 inclusive of amounts separately approved by the ARC Committee specifically for the Internal Audit Office;
(3) State Employees' Defined Contribution Plan Budget of $4,939,000 inclusive of amounts separately approved by the ARC Committee specifically for the Internal Audit Office; and
(4) Commonwealth's Deferred Compensation Plan Budget of$1,152,000 inclusive of amounts separately approved by the ARC Committee specifically for the Internal Audit Office,
each substantially in the same form as presented in the Chief Financial Officer's SERS FY 2026-27 Budget presentation, and each as amended and/or ultimately approved by the Office of the Budget, as set forth in the attached (Attachment F).
MOTION: 2025-45 STRESS TESTING AND RISK ASSESSMENT REPORT
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Finance and Member and Participant Services Committee to approve the 2025 Stress Testing and Risk Assessment Report prepared by SERS' Actuary Gabriel, Roeder, Smith & Company (ORS) as set forth in the attached (Attachment E).
MOTION: 2025-44 SOC 1 TYPE 2 AUDIT RESULTS
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Audit, Risk, and Compliance Committee to accept the auditor's opinion of the SOC 1 Type 2 audit performed by Certified Public Accounting firm Clifton, Larson, Allen, LLP, as attached (Attachment D).
MOTION: 2025-43 LEVEL ONE ACTUARY REPLICATION AUDIT RESULTS
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accepts the auditor's opinion of the Level One Actuarial Replication audit performed by Gabriel, Roeder, Smith & Company on the results of Korn Ferry's 2023 actuarial valuation, as attached (Attachment C).
MOTION: 2025-42 GLOBAL INTERNAL AUDIT STANDARDS GAP ASSESSMENT PROCUREMENT
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to initiate the request for proposal procurement process for a gap assessment of the Internal Audit Office for its adherence to the Global Internal Audit Standards, as attached (Attachment B).
MOTION: 2025-41 INTERNAL AUDIT OFFICE UPDATE
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to approve, for Fiscal Year 2026-2027, the following proposed budgets for the Internal Audit Office
(I) A portion of the SERS administrative Budget for the Internal Audit Office of up to $ 1,086,000
(2) A portion of the SERS Investment Budget for the Internal Audit Office of up to $104,500
(3) A portion of the State Employees' Defined Contribution Plan Budget for the Internal Audit Office of up to $67,000
(4) A portion of the Commonwealth's Deferred Compensation Plan Budget for the Internal Audit Office of up to $69,000,each substantially in the same form as presented and attached in the Internal Audit Budget Report, and each as amended and/or ultimately approved by the Office of the Budget.
MOTION: 2025-40 FY 2023 FY 2027 REVISED SERS STRATEGIC PLAN MID-PLAN UPDATE
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Board Governance and Personnel Committee to approve the FY 2023-FY 2027 Revised SERS Strategic Plan Mid-Plan Update as set forth in the attached (Attachment A).
MOTION: 2025-39 Investment Manager Evaluation Quarterly Update
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Investment Committee to:
Approve the:
(i)orderly liquidation of the Global Public Equity portfolio managed by Walter Scott & Partners Limited, and
(ii)transition of the proceeds of such liquidation to SERS' cash account. Upon completion of this liquidation and transition, SERS' relationship with Walter Scott & Partners will terminate.
MOTION: 2025-38 Private Equity Opportunity: HarbourVest Dover Street XII and Secondary Overflow Fund VI-A
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Investment Committee to:
commit (i) up to $100 million to Dover Street XII L.P. and (ii) up to $50 million to Secondary Overflow Fund VI-A L.P., a sidecar vehicle that will co-invest alongside Dover Street XII L.P., plus investment expenses and pro rata share of partnership operating expenses, consistent with executed partnership documents, as investments within the Private Equity asset class, subject to successful completion of contract negotiations and execution and delivery of closing documents by all parties, including required Commonwealth legal approvals, within 12 months.
MOTION: 2025-37 REAL ESTATE OPPORTUNITY: BLUE OWL REAL ESTATE FUND VII
Meeting Date: October 7, 2025
RESOLVED: That the State Employees' Retirement Board accept the recommendation of the Investment Committee to commit up to $100 million to Blue Owl Real Estate Fund VII LP, plus investment expenses and pro rata share of partnership operating expenses, consistent with executed partnership documents, as a follow on investment within the Real Estate asset class, subject to successful completion of contract negotiations and execution and delivery of closing documents by all parties, including required Commonwealth legal approvals, withing 12 months?
MOTION: 2025-36 Approval of Consent Calendar
Meeting Date: October 7, 2025
RESOLVED: that the board approves the Consent calendar items for the October 7, 2025, board meeting.
A. Approving Board Meeting Minutes -July 29, 2025, Regular meeting
B. Defined Benefit Plan Statements of Changes in Fiduciary Net Position for the Periods Ending: May 2025, June 2025
C. Deferred Compensation Plan Statements of Changes in Fiduciary Net Position for the Periods Ending May 2025, June 2025
D. Defined Contribution Plan Statements of Changes in Fiduciary Net Position for the Periods Ending: May 2025, June 2025.
MOTION: 2025-35 Adopt the Agenda
Meeting Date: October 7, 2025
RESOLVED: that the board adopt the agenda for the October 7, 2025, board meeting.
MOTION: 2025-34 MOTION TO ADJOURN
Meeting Date: July 29, 2025
MOTION: 2025-33 5-year Actuarial Experience Study Highlights and Assumed Rate of Return Discussion
Meeting Date: July 29, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Finance and Member and Participant Services Committee to adopt the actuarial assumptions and the recommended changes to the current actuarial assumptions set forth in the attached report by Korn Ferry titled, “Summary of Recommended Changes to Actuarial Valuation Assumptions Based Upon 20th Investigation of Actuarial Experience, Covering the Period January 1, 2020 to December 31, 2024, to Be Effective with the December 31, 2025 Actuarial Valuation” (Exhibit A).
MOTION: 2025-32 FIXED INCOME INTERVIEWS
Meeting Date: July 29, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Investment Committee to:
(i) invest $500 million in the Core Bond Strategy product managed by J.P. Morgan Investment Management.
(ii) invest $500 million in the Core Fixed Income product managed by Loomis, Sayles & Company.
(iii) invest $500 million in the Core Broad Market Fixed Income product managed by NISA Investment Advisors, as investments within the Fixed Income asset class.
Each investment shall be subject to successful completion of contract negotiations and execution and delivery of closing documents by all parties, including required Commonwealth legal approvals, within 12 months. A transition manager may be used to fund these strategies, which funding will come from the MCM Bond Index portfolio and Cash.
MOTION: 2025-31 APPROVAL OF CONSENT CALENDAR
Meeting Date: July 29, 2025
RESOLVED that the board approves the Consent calendar items for the July 29, 2025, board meeting.
MOTION: 2025-30 ADOPTION OF THE AGENDA
Meeting Date: July 29, 2025
RESOLVED that the board adopt the agenda for the July 29, 2025, board meeting.
MOTION: 2025-29 MOTION TO ADJOURN
Meeting Date: June 17, 2025
MOTION: 2025-28 2024 Independent Financial Statements
Meeting Date: June 17, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation by the Audit, Risk and Compliance Committee to accept:
MOTION: 2025-27 Internal Audit Office Update
Meeting Date: June 17, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to authorize SERS staff to initiate the procurement process for SERS’ External Auditor Services.
MOTION: 2025-26 Internal Audit Strategic Plan
Meeting Date: June 17, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to approve the Internal Audit Strategic Plan, as set forth in the attached and located in BoardDocs at the Audit, Risk and Compliance Committee meeting agenda item 6A.
MOTION: 2025-25 Approval of Consent Calendar
Meeting Date: June 17, 2025
RESOLVED that the board approves the Consent calendar item for the June 17, 2025, board meeting.
MOTION: 2025-24 Adoption of the agenda
Meeting Date: June 17, 2025
RESOLVED: that the board adopt the agenda for the June 17, 2025, board meeting.
MOTION: 2025-23 MOTION TO ADJOURN
Meeting Date: May 6, 2025
MOTION: 2025-22 Actuarial Services RFP
Meeting Date: May 6, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Finance and Member and Participant Services Committee to authorize SERS Staff to initiate the procurement process for SERS’ Actuarial Services.
MOTION: 2025-21 Korn Ferry Contribution Rates, Actuarial Services RFP Planning Discussion
Meeting Date: May 6, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Finance and Member and Participant Services Committee to:
(A) approve the results of the December 31, 2024, actuarial valuation; and for the Commonwealth’s fiscal year 2025-2026, certify the following contribution rates:
1. Shared-risk member contribution rate increase of 0.00% for A-3 and A-4 classes of service, and .09% for A-5 and A-6 classes of service;
2. Employer normal cost contribution rate of 7.65%;
3. Composite employer contribution rate necessary for the funding of the system of 32.34%; and 4. Employer contribution rates by group and class of service of employees as set forth in the actuarial valuation as calculated by SERS’ consulting actuary, Korn Ferry, pursuant to Section 5508 of the State Employees’ Retirement Code;
(B) authorize SERS staff and Korn Ferry to use those rates to develop all the employer rates for the period of July 1, 2025, to June 30, 2026, pursuant to Section 5902(k) of the State Employees’ Retirement Code;
(C) establish an employer contribution rate of .04% for fiscal year 2025-2026 to fund the Benefits Completion Plan established pursuant to Section 5941 of the State Employees’ Retirement Code; and
(D) authorize the Executive Director to certify such rates to all employers with employees who are active members of SERS and to the Secretary of the Budget.
MOTION:2025-20 Ad Hoc Review of Internal Audit Office Charter Updates
Meeting Date: May 6, 2025
RESOLVED: That the State Employees’ Retirement Board accept the concurrence of the Board Governance and Personnel Committee to adopt the Amended Internal Audit Office Charter recommended by the Audit, Risk and Compliance Committee, as attached and set forth in Attachment B.
MOTION: 2025-19 Internal Audit Office Charter Update
Meeting Date: May 6, 2025
RESOLVED: That the State Employees’ Retirement Board approve the recommendation by the Audit, Risk and Compliance Committee to adopt the State Employees’ Retirement System’s Internal Audit Office Charter, as set forth in Attachment B.
MOTION: 2025-18 Private Equity Opportunity: Arcline Capital Partners IV LP
Meeting Date: May 6, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Investment Committee to commit (i) up to $130 million to Arcline Capital Partners IV LP, and (ii) up to $20 million to a sidecar vehicle that will co-invest alongside Arcline Capital Partners IV (name TBD), plus investment expenses and pro rata share of partnership operating expenses, consistent with executed partnership documents, as investments within the Private Equity asset class, subject to successful completion of contract negotiations and execution and delivery of closing documents by all parties, including required Commonwealth legal approvals, within 12 months.
MOTION: 2025-17 APPROVAL OF CONSENT CALENDAR
Meeting Date: May 6, 2025
RESOLVED: That the board approves the Consent Calendar items, as listed, for the May 6, 2025, board meeting.
A. Approving Board Meeting Minutes – March 4, 2025, Regular Meeting
B. Defined Benefit Plan Statement of Changes in Fiduciary Net Position for the Periods Ending: November 30, 2024
C. Defined Contribution Plan Statement of Changes in Fiduciary Net Position for the Periods Ending: November 30, 2024
D. Deferred Compensation Plan (DCP) Statement of Changes in Net Position Available for Benefits for the Periods Ending: November 30, 2024
MOTION: 2025-16 ADOPTION OF THE AGENDA
Meeting Date: May 6, 2025
RESOLVED: That the board adopt the agenda for the May 6, 2025, board meeting.
MOTION: 2025-15 MOTION TO ADJOURN
Meeting Date: March 4, 2025
MOTION: 2025-14 OLD BUSINESS
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board
1) approve the recommendation presented to the Board during its December 10, 2024, meeting by Linea Solutions to acquire a modern comprehensive pension administration system to replace SERS’ current pension administration systems known as SERIS and DAWPM;
2) authorize the current and future commitment of SERS resources, including but not limited to personnel time and talent resources and financial and monetary resources, to this multi-year project; and
3) authorize staff to procure a consultant, either through sole source procurement or other allowed method to assist staff in the:
(i) planning the process of identifying, procuring, and evaluating potential pension administration vendors and integrators;
(ii) design and drafting of the RFP; and
(iii) providing subject matter expertise during the technical and cost evaluations of the vendor proposals; using established Commonwealth and SERS’ Board procurement processes.
MOTION: 2025-13 2025 WORK PLAN
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board approve the Audit, Risk and Compliance 2025 Committee Work Plan, as set forth in Attachment I.
MOTION: 2025-12 2025 WORK PLAN
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Securities Litigation Committee to approve the Securities Litigation Committee 2025 Work Plan, as set forth in Attachment H.
MOTION: 2025-11 AUTHORIZED SECURITIES SIGNATORIES
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board approve the revision of the Authorized Securities Signatories, in the form and with the authority as more fully set forth in the Authorized Securities Signatories List, as appended, and further, that all prior authorized securities signature lists established by the Board will no longer be effective, including, but not limited to, those established by Resolution Numbers 2023-42 and 2012-03.
MOTION: 2025-10 2025 Committee Work Plan
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board approve the Finance and Member and Participant Services Committee 2025Work Plan, as set forth in Attachment G.
MOTION: 2025-09 ANNUAL SALARY ADJUSTMENT FOR SERS’ CHIEF INVESTMENT OFFICER
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board approve a pay increase to $208.33 an hour for James Nolan, Chief Investment Officer SERS, to be effective the first full pay period of March 2025.
MOTION: 2025-08 ANNUAL SALARY ADJUSTMENTS FOR INVESTMENT PROFESSIONALS
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board approve the salary adjustments set forth in Annual Salary Adjustments for Investment Professionals 2025, Excluding CIO, and authorize cash payments to those Investment Professionals in 2025 whose recommended salary adjustments have exceeded the pay bands, as set forth in Attachment F, to be effective the first full pay period of March 2025 and paid as soon as administratively feasible.
MOTION:2025-07 BOARD SELF-ASSESSMENT RFP VENDOR SELECTION
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board approve the selection of the Board Self-Assessment Consultant and direct the Issuing Office to award the contract and to proceed with contract negotiation with the selected vendor. The vendor will be publicly named at a later date after successful contract negotiation.
MOTION: 2025-06 INVESTMENT PROFESSIONAL PAY BANDS
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee to adopt the amended Compensation Policy for Investment Professionals dated March 1, 2025, to incorporate the use of cash payments, pursuant to established Commonwealth of Pennsylvania practices, for those Investment Professionals whose annual salary adjustments are limited by the established pay bands, as set forth in Attachment E.
MOTION: 2025-05 Board Education Plan
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee to adopt the 2025 SERS Education Plan for Board Members and Designees, as set forth in Attachment D.
MOTION:2025-04 2025 Committee Work Plan
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee to adopt the Board Governance and Personnel Committee 2025 Work Plan, as set forth in Attachment C.
MOTION: 2025-03 2025 Committee Work Plan
Meeting Date: March 4, 2025
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Investment Committee to approve the Investment Committee 2025 Work Plan, as set forth in Attachment B.
MOTION: 2025-02 APPROVAL OF CONSENT CALENDAR
Meeting Date: March 4, 2025
RESOLVED: That the board approve the Consent Calendar items, as listed, for the March 4, 2025, board meeting.
A. Approving the Revised Board Meeting Minutes – December 10, 2024, Regular Meeting
B. Defined Benefit Plan Statement of Changes in Fiduciary Net Position for the Period Ending October 31, 2024
C. Defined Contribution Plan Statement of Changes in Fiduciary Net Position for the Period Ending October 31, 2024
D. Deferred Compensation Plan (DCP) Statement of Changes in Net Position Available for Benefits for the Period Ending October 31, 2024
MOTION: 2025-01 ADOPTION OF THE AGENDA
Meeting Date: March 4, 2025
RESOLVED: That the board adopt the agenda for the March 4, 2025, board meeting.