Pennsylvania Pension Moves to Fixed Income as Benefit Costs Rise
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Trustees of the $24 billion retirement system for state employees in Pennsylvania, the sixth most-populous U.S. state, approved plans to shift assets from hedge funds to stocks and fixed-income securities.
The move will raise the share of the fund’s holdings to 39 percent stocks from 27 percent, and to 26 percent fixed income from 15 percent, according to a news release from the State Employees’ Retirement System. The transition will help cover rising benefit payments and is a long-term target, the release said.