Pennsylvania Public School Employees' Retirement System

PSERS — Pennsylvania statutory public-school pension; official USD US$85.7B Total Fund at 31 Mar 2026; US$83.7B FNP at 30 Jun 2025. Executive Director Uri Monson; CIO Benjamin L. Cotton (interim ED ended).

UAO Editorial September 11, 2026 115 min read

UAO Registry · Top 100 · INST rank 74 · Public pension · United States (Pennsylvania) · Last researched Friday 11 September 2026 (America/Toronto). Corrections: info@universalassetowners.com.

Soft names: Pennsylvania Public School Employees' Retirement System; PSERS; PA PSERS. Official site: psers.pa.gov (redirects to pa.gov/agencies/psers). Related U.S. public-pension peers: LACERA, OPERS, STRS Ohio, CalPERS, CalSTRS, NYSCRF, Florida SBA, MassPRIM. Influence Index on INST is an editorial composite, not a rating.

Executive brief

Pennsylvania Public School Employees' Retirement System (PSERS) is a governmental, cost-sharing, multiple-employer pension system created by the Public School Employees' Retirement Code (24 Pa.C.S.). Official sites: psers.pa.gov (redirects) and pa.gov/agencies/psers. Headquarters printed on official materials: 5 North 5th Street, Harrisburg, Pennsylvania (switchboard numbers omitted). The FY2025 Annual Comprehensive Financial Report and Summary Annual Financial Report describe PSERS as a component unit of the Commonwealth of Pennsylvania. This Registry profile (slug pennsylvania-public-school-employees-retirement-system, INST rank 74, 71st live elite) treats PSERS as a U.S. public pension — not a sovereign wealth fund and not SERS.

Official USD scale — dated prints only, no Instantiations-invented headline. Cerity Partners Investment Performance Review for the quarter ended 31 March 2026 shows Total Fund assets of US$85.703 billion (~US$85.7 billion), matching the 8 July 2026 newsroom print of approximately $85.7 billion. The unaudited quarterly Statement of Fiduciary Net Position as of the same date shows total fiduciary net position of about US$87.852 billion — a different metric; do not blend. At fiscal year-end 30 June 2025, SAFR condensed statements show fiduciary net position US$83.729 billion (~US$83.7 billion) and an investment portfolio of US$81.4 billion at fair value (one component of net position). UAO Instantiations still carries an older ~US$75 billion public estimate — treat that Instantiations figure as stale relative to official USD.

Leadership honesty (live 11 September 2026): Executive Director Uri Monson (appointed December 2025; in role from 13 December 2025 per 2026 member newsletters; official Executive Director page). Chief Investment Officer Benjamin L. Cotton (from 17 January 2023). Live Organization and Staff copy states that when called upon in 2025, Dr. Cotton briefly served as Interim Executive Director during a leadership transition — past tense. FY2025 ACFR/SAFR covers still list Cotton as “Interim Executive Director & Chief Investment Officer” because they describe that reporting period; they are not the current seat. PSERS does not publish a separate CEO title; the staff page describes the Executive Director as the agency’s chief executive officer. INST’s empty CEO field plus “CIO also Interim Executive Director” is therefore stale. This profile maps INST ceo to Uri Monson / Executive Director (same convention as OPERS and STRS Ohio) and INST cio to Cotton as CIO only. A second Instantiations person record, Benjamin Cotton, still carries the stale dual-title dek.

Researchers care because PSERS is one of the oldest statewide teacher/school-employee systems in the United States (founded 1917; operations 1919), a large USD-reporting public pension with a documented Act 5 of 2017 DC overlay, a 15-member independent administrative board, and a dense IPS / stand-alone policy stack. Related UAO hubs: Registry, Top 100; peers LACERA, OPERS, STRS Ohio, CalPERS, NYSCRF.

Speakable summary

Pennsylvania Public School Employees' Retirement System, or PSERS, is the statewide pension system for Pennsylvania public-school employees, created in nineteen seventeen. As of March thirty-first, twenty twenty-six, official Total Fund assets were about eighty-five point seven billion U.S. dollars. Fiduciary net position at June thirtieth, twenty twenty-five, was about eighty-three point seven billion dollars. Uri Monson has been executive director since December twenty twenty-five. Benjamin L. Cotton is chief investment officer. Cotton’s interim executive-director assignment in twenty twenty-five has ended. PSERS is not a sovereign wealth fund and not Pennsylvania SERS.

Mandate & ownership

The Board of Trustees page and IPS Introduction state that PSERS was established on 18 July 1917, with operations commencing in 1919, to provide retirement benefits to public-school employees of the Commonwealth. The 15-member Board is an independent administrative board of the Commonwealth. Members stand in a fiduciary relationship to PSERS members regarding investments and disbursements of the Fund, with exclusive control and management and full power to invest, plus statutory duties to certify contribution rates, authorize the actuarial valuation and independent audit, and publish an annual financial statement. The Board reviews activities of the Executive Director and Chief Investment Officer.

Statutory frame: Public School Employees’ Retirement Code, 24 Pa.C.S. §8101 et seq. IPS cites the prudence and loyalty standard at 24 Pa.C.S. §8521 (exclusive-benefit and prudent-person language). ACFR/SAFR describe PSERS as a component unit of the Commonwealth of Pennsylvania and a governmental cost-sharing multiple-employer plan (DB Plan as a qualified 401(a) trust), with a 401(a) DC Plan added after Act 5 of 2017.

Act 5 expansion (official news/about copy): members hired on or after the Act 5 date may elect classes that participate in both DB and DC components or a stand-alone DC class. PSERS also administers a Health Insurance Premium Assistance Program (subsidy up to $100 per month for qualifying retirees; about 91,000 participants at 30 June 2025 per ACFR/budget materials) and a voluntary Health Options Program funded by participating-member premiums (about 122,000 annuitants and dependents as of 1 January 2026 in the budget-hearing print).

Mission printed in the IPS: To be a partner with our members to fulfill the promise of a secure retirement. Organization and Staff describes the Executive Director as the chief executive officer with overall responsibility for managing the agency to Board objectives. Staff scale in the 4 December 2025 appointment news: Monson “will lead a staff of 350 employees and will report directly to the board.” Membership at 30 June 2025 (July 2026 performance news / about copy): about 262,000 active, 255,000 annuitants and beneficiaries, and 26,000 vested inactive members; participating employers about 763 (ACFR).

Disambiguation

  • PSERS ≠ Pennsylvania SERS — SERS is the State Employees’ Retirement System; this profile is the public-school employees’ system only.
  • PSERS ≠ Pennsylvania Treasury / SWF — PSERS is a statutory pension board, not a sovereign wealth fund and not the State Treasurer’s investment arm (the Treasurer sits as a trustee).
  • PSERS ≠ CalSTRS / CalPERS / STRS Ohio / OPERS — those are other U.S. state systems with different statutes, boards, and USD series.
  • Total Fund Composite ≠ fiduciary net position — US$85.7B (31 Mar 2026 performance) is not the same print as unaudited quarterly FNP ~US$87.9B or FYE FNP US$83.7B.
  • Investment portfolio ≠ total net position — SAFR’s US$81.4B fair-value portfolio at 30 Jun 2025 is “one component of the System’s net position.”
  • FY2025 ACFR cover ≠ current leadership — Cotton as “Interim Executive Director & CIO” on that cover is a period snapshot; live 2026 pages list Uri Monson as Executive Director.
  • Two Cotton person records — Instantiations carries both benjamin-l-cotton (current CIO title) and benjamin-cotton (stale dual-title dek).
  • Name/URL — www.psers.pa.gov redirects into the Commonwealth pa.gov/agencies/psers site.

Scale & portfolio

As-ofOfficial USD / metricSource
31 Mar 2026Total Fund Composite US$85.703B (~US$85.7B)Cerity Partners IPR; 8 Jul 2026 news
31 Mar 2026Unaudited fiduciary net position US$87.852BQuarterly Statement of FNP
30 Jun 2025Fiduciary net position US$83.729B (~US$83.7B)SAFR condensed; Jul 2026 news
30 Jun 2025Investment portfolio US$81.4B at fair valueSAFR ED letter
30 Jun 2025DB Plan net position US$82.6B (from US$76.5B)SAFR
30 Jun 2024Total Fund US$75.183B (Q1 2026 comparator)Cerity Partners table
INST (stale)~US$75 bn public estimateDo not headline

Allocation snapshot (31 Mar 2026, US$ millions)

Cerity Partners Total Fund table (actual weights as printed): Public Equity US$26,312 / 30.7%; Private Equity US$9,869 / 11.5%; Public Fixed Income US$20,554 / 24.0%; Private Fixed Income US$5,777 / 6.7%; Public Real Assets US$9,505 / 11.1%; Private Real Assets US$10,118 / 11.8%; Opportunistic US$786 / 0.9%; Cash US$2,780 / 3.2%; Financing Composite −US$1,812 / −2.1%; Cash & Enhanced Cash US$4,593 / 5.4%. This profile does not invent a reconciliation of overlapping cash lines.

FY2025 comparators from the same table: Total Fund US$81,413 million; Public Equity 31.3%; Private Equity 12.6%; Public FI 23.7%; Private FI 7.5%; Public Real Assets 10.3%; Private Real Assets 11.8%. SAFR also prints a simplified policy-style mix including a Real Asset sleeve of 22% (11% public / 11% private) among Board-approved allocations — treat policy targets and actual Q1 2026 weights as distinct series.

Governance & leadership

Board of Trustees (ACFR roster, August 2025)

Fifteen trustees. Chair Richard Vague (Governor Appointee); Vice Chair Susan Lemmo (Elected Retired Member). The 8 July 2026 performance news still quotes Vague as Chair and Lemmo as Vice Chair. Other August 2025 members named in the ACFR/SAFR roster:

  • The Honorable Matt D. Bradford — Pennsylvania House of Representatives
  • Dr. Pamela Brown — Elected Active Certified Member
  • Eric O. DiTullio — Elected by Pennsylvania Public School Boards
  • The Honorable Jarrett Coleman — Pennsylvania State Senate
  • The Honorable Torren Ecker — Pennsylvania House of Representatives
  • The Honorable Stacy Garrity — Treasurer of Pennsylvania
  • Nathan G. Mains — Chief Executive Officer, Pennsylvania School Boards Association, Inc.
  • Ann Monaghan — Elected Active Non-Certified Member
  • Jason Moore — Elected Active Certified Member
  • The Honorable Katie J. Muth — Pennsylvania State Senate
  • Brian A. Reiser — Elected Active Certified Member
  • The Honorable Dr. Carrie Rowe — Acting Secretary of Education
  • The Honorable Wendy Spicher — Secretary of Banking & Securities

No Instantiations person SSR for Vague or Lemmo as of this research date — named without broken links. This roster is an August 2025 ACFR print; subsequent appointments are not invented here.

Executive leadership (live Organization and Staff / Executive Director pages)

Predecessor Executive Director Terrill J. Sanchez retired in June 2025 (SAFR letter; appointment news). Predecessor CIO James H. Grossman Jr. retired May 2022; Bob Devine served as Interim CIO during the Cotton search (official CIO appointment news). Do not list Cotton as current Interim Executive Director. Do not invent a CEO distinct from the Executive Director.

Investment philosophy

The Board adopted the current Investment Policy Statement on 23 October 2025 (revision history from December 2020 through October 2025). Purpose: provide clear guidelines for management of assets within the PSERS Defined Benefit Fund. The Board endeavors to review and revise the Policy every three years. IPS Investment Philosophy: assets should be managed in accordance with PSERS’ unique liability stream, funding sources, cash flows, and portfolio size, focusing on the prudent accumulation of wealth over the long term to meet retirement-benefit obligations.

Eight printed beliefs: (1) uncertainty — the future is difficult to forecast; (2) asset allocation, more than implementation, largely determines overall risk and return; (3) diversification across asset classes, geography, strategy, and private-investment vintage years as the best approach to uncertainty; (4) risk — for an underfunded or negative-cash-flow plan, the path of compounding and drawdown risk matter more, and liquidity should reasonably ensure obligations can be met in dislocations; (5) leverage at total-fund level can enhance diversification; (6) disciplined rebalancing is inherently contrarian and restores SAA as primary driver; (7) portfolio size should be used to enhance net-of-fees return and access; (8) private-markets allocations may be justified by an illiquidity premium.

IPS roles: the Board appoints the CIO, external managers, and investment consultants; the CIO is liaison and senior staff administrator on investment matters, oversees Investment Office Professionals, implements tactical allocations within Board ranges, and is accountable for IOP actions. An Asset Allocation Committee recommends strategic plans to the CIO. Stand-alone Board policies opened for this pack include public markets, private markets, liquidity, derivatives and leverage, currency hedging, placement agent, external-manager due diligence and monitoring, securities lending, and QIR.

Investment Program hub copy: “Consistent with the highest fiduciary standards, we manage the investment program at PSERS, endeavoring to generate long-term, net of fee, risk-adjusted returns which meet or exceed the Board’s Policy Index.” Internally managed sleeves sit alongside external managers; 13F filings and manager-fee transparency pages are part of the public stack.

Climate / ESG / proxy voting

This profile does not invent a net-zero or fossil-fuel exclusion unless an opened official policy says so. Opened IPS beliefs discuss diversification, drawdown, leverage and private markets — not a climate-exclusion regime. What is official and opened: the Board’s proxy-voting stack.

Resolution 2024-20 (22 March 2024) authorized the Investment Office to amend or replace U.S. and non-U.S. proxy policies to reflect Glass Lewis Corporate Governance Focused Thematic Voting Policy Guidelines with specified overrides, with full delegation of vote implementation to Glass Lewis under staff and Board oversight and triennial policy review. In 2025 the Board first engaged ISS under RFP 2025-5 (Resolution 2025-37, 13 June 2025) and later rescinded that engagement and engaged Glass Lewis (Resolution 2025-87, 12 December 2025). The Glass Lewis thematic voting policy PDF is posted under Investment Policies. Treat the live posted policy plus the latest resolution as the source of truth; do not assume a climate-action overlay beyond what that policy text actually says.

Placement-agent, pay-to-play, external-manager due-diligence, and QIR policies are governance/ethics controls, not ESG return claims. Public-safe note: this profile does not reproduce private staff emails or switchboard directories.

Performance & reporting

FY2025 SAFR: time-weighted net 9.67% versus Policy Index 9.56% (+11 bp); five-year annualized net 9.36%; ten-year 7.48% versus 7.00% assumption; 20-year 6.89% trailed the 7.00% assumption. Investment-related costs declined from 87 bps of net position in FY2020 to 47 bps in FY2025 (SAFR). Q1 2026 (31 Mar): Total Fund Composite 0.37% net for the quarter, 6.12% fiscal YTD, 10.26% one-year, 8.49% three-year, 7.42% five-year, 8.41% ten-year. Versus blended policy: −90 bp (qtr), −165 bp (FYTD), −164 bp (1-yr), −20 bp (3-yr), +69 bp (5-yr), +44 bp (10-yr). Board Chair Vague: three-, five- and ten-year annualized returns remaining above the 7% actuarial objective (8 July 2026 news).

Funded-status stack (do not blend vintages): Gallagher 30 June 2025 valuation — total funded ratio 66.6% on actuarial value (AVA ~US$81.45B / AL ~US$122.36B), market-value funded 67.6%; employer contribution rate FY2026/27 33.59% (32.52% pension + 0.56% premium assistance + 0.51% Act 5 DC), certified 11 December 2025. SAFR letter of 4 December 2025 (then-current): fair-value funded 68.04% at 30 June 2025; actuarial 64.8% at 30 June 2024. Actuarial letter notes the ninth consecutive year the Board certified the full actuarially determined employer rate after 15 years of statutory underfunding.

Transparency stack on pa.gov/agencies/psers: ACFR, SAFR, quarterly financial statements, GASB 67/74, actuarial valuations, experience studies, budget-hearing books, year-end asset listings, 13F, IPS and stand-alone policies, Board resolutions, Investment Performance Reviews, CMA/AL studies, stress-testing. GFOA Certificate of Achievement for ACFR: 42 consecutive years FY1983–FY2024; Popular Annual (SAFR) award nine consecutive years FY2016–FY2024; PPCC Public Pension Standards Award for Funding and Administration 2024 (ACFR awards page).

Controversies & debates

Official attributable themes from opened primaries (not invented narratives): (1) Leadership transition 2025 — Sanchez retirement; Cotton as Interim ED; nationwide search; Monson appointed December 2025 / started 13 December 2025. FY2025 report covers lag the live org chart. (2) Historical contribution adequacy — actuarial letter: 15 years of statutory underfunding followed by consecutive full ADC certification (ninth year in the FY2025 SAFR frame). Unfunded liability remains large (AVA 66.6% / AL ~US$122.36B at 30 Jun 2025). (3) Negative cash-flow / underfunded-plan path risk — IPS belief 4 states drawdown risk is more consequential for underfunded or negative-cash-flow plans; SAFR notes pension expenditure dynamics and reliance on investment income (~50% of total revenues over FY2001–FY2025). (4) Proxy-agent change — 2024 Glass Lewis thematic policy; 2025 ISS award then rescinded in favor of Glass Lewis (Resolutions 2025-37 and 2025-87). (5) Funston governance review closeout — Resolution 2025-72; this profile records the Board action without inventing a secondary-press narrative. (6) Q1 2026 underperformance versus policy — −165 bp FYTD versus blended policy as of 31 Mar 2026, while long-horizon prints remain above 7% on 3/5/10-year news copy. Secondary press is not required; prefer pa.gov when figures conflict.

Timeline

  • 1917-07-18 — Established by statute (IPS; ACFR “one of the oldest pension plans in the United States”).
  • 1919 — Operations begin; statewide DB plan for public-school employees.
  • 2017 — Act 5 — Hybrid DB/DC options and stand-alone DC plan added.
  • 2017 onward — Full actuarially determined employer contributions certified (ninth consecutive year in FY2025 SAFR frame after prior statutory underfunding).
  • 2022-05 — CIO James H. Grossman Jr. retires; Bob Devine Interim CIO.
  • 2023-01-17 — Benjamin L. Cotton starts as CIO.
  • 2024-03-22 — Resolution 2024-20: Glass Lewis thematic proxy policy + implementation delegation.
  • 2025-06 — Terrill J. Sanchez retires as Executive Director; Cotton serves as Interim ED.
  • 2025-06-13 — IPS and currency-hedging changes; RFP 2025-5 ISS engagement (later rescinded).
  • 2025-06-30 — FYE: FNP US$83.729B; portfolio US$81.4B FV; TWR 9.67%.
  • 2025-10-23 — IPS adopted (current opened version).
  • 2025-12-04 — Board names Uri Monson next Executive Director; SAFR letter still signed by Cotton as Interim ED.
  • 2025-12-11/12 — Board certifies 33.59% FY2026/27 employer rate; expected to finalize Monson; Glass Lewis re-engaged on proxy RFP.
  • 2025-12-13 — Monson begins as Executive Director (2026 newsletters).
  • 2026-02-28 — Gallagher actuarial valuation letter (as-of 30 Jun 2025); funded ratio 66.6% AVA.
  • 2026-03-31 — Total Fund US$85.703B; 1-year net 10.26%; unaudited FNP US$87.852B.
  • 2026-07-08 — Official news: long-term returns above 7% objective; assets approximately $85.7B.
  • 2026-09-11 — This UAO elite profile researched/shipped.

Annex: AUM honesty (USD)

Use only dated official USD. Headline pair for Instantiations aumd: US$85.7B Total Fund (31 Mar 2026) and US$83.7B fiduciary net position (30 Jun 2025). Do not convert from another currency (PSERS reports USD). Do not headline the Instantiations ~US$75 bn estimate. Do not silently equate Total Fund Composite, fiduciary net position, and the US$81.4B investment-portfolio component.

FigureAs-ofNotes
US$85.703B Total Fund31 Mar 2026Cerity Partners; news ~$85.7B
US$87.852B FNP (unaudited)31 Mar 2026Quarterly statement — different metric
US$83.729B FNP30 Jun 2025SAFR condensed statements
US$81.4B investments FV30 Jun 2025Component of net position
US$82.6B DB Plan NP30 Jun 2025From US$76.5B
~US$75 bn INST estimatestaleNot a headline

Annex: Leadership honesty (Cotton dual role ended)

Live Organization and Staff (AEM modifyDate 2026-06-05 on the Cotton text component) titles Cotton as Chief Investment Officer and states he “briefly served as Interim Executive Director during a leadership transition — a role he was honored to fill while the Board conducted its search.” Live Executive Director page: Uri Monson “was appointed Executive Director … in December 2025” and “oversees the agency operations, investment program, and service to more than 500,000 members.” 2026 active/retired newsletters: Monson “officially began his role on December 13,” succeeding Sanchez; “Since that time, Chief Investment Officer Ben Cotton has served as Interim Executive Director” — newsletter past-tense relative to Monson’s start. 4 December 2025 news: Cotton “has very capably served as interim executive director since that date [Sanchez retirement].” FY2025 ACFR cover and SAFR letter (4 Dec 2025, “Respectfully, Benjamin Cotton, Interim Executive Director”) are contemporaneous with the announcement, not with the 13 December start. INST correction: ceo = Uri Monson / Executive Director; cio = Benjamin Cotton / Chief Investment Officer; clear the “also Interim Executive Director” dual title. Do not invent a CEO name distinct from the Executive Director.

Annex: Q1 2026 performance fold

Folded language from the Cerity Partners Investment Performance Review, period ending 31 March 2026 (Total Fund summary).

Investment Performance Review Period Ending: March 31, 2026 Pennsylvania Public School Employees' Retirement System © 2026 Cerity Partners. CERITYPARTNERS.COM PSERS Total Fund Pennsylvania Public School Employees' Retirement System Performance Summary (Net of Fees) Period Ending: March 31, 2026 Qtr. Fiscal YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs PSERS Total Fund Composite 0.37 6.12 10.26 8.49 7.42 8.41 Percentile 14 62 87 78 31 38 PSERS Total Fund Composite 0.37 6.12 10.26 8.49 7.42 8.41 Blended Policy (Total Plan) 1.28 7.78 11.89 8.68 6.73 7.97 Value Add -0.90 -1.65 -1.64 -0.20 0.69 0.44 Peer Group Median -0.27 6.36 11.96 9.27 6.76 8.22 60% Global Equity / 40% U.S.

Agg -1.90 5.85 13.62 11.34 5.87 7.60 Percentile 100 66 24 18 87 76 PSERS Total Fund universe is All Public DB Plans > $5B. Page21 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Executive Summary Period Ending: March 31, 2026 Trailing Performance Asset Allocation ($MM) 15.0 Mar-2026 FY25 FY24 ($) % ($) % ($) % 11.3 Total Fund 85,703 100.0 81,413 100.0 75,183 100.0 10.0 Public Equity 26,312 30.7 25,448 31.3 20,488 27.3 8.5 8.7 7.8 7.4 Private Equity 9,869 11.5 10,253 12.6 12,244 16.3 6.7 6.1 5.9 5.9 Public Fixed Income 20,554 24.0 19,321 23.7 17,621 23.4 Return 5.0 Private Fixed Income 5,777 6.7 6,135 7.5 5,494 7.3 1.3 Public Real Assets 9,505 11.1 8,360 10.3 9,392 12.5 0.4 0.0 Private Real Assets 10,118 11.8 9,636 11.8 8,250 11.0 -1.9 Opportunistic 786 0.9 836 1.0 1,452 1.9 -5.0 1 Quarter Fiscal YTD 3 Yrs 5 Yrs Cash 2,780 3.2 1,422 1.7 -71 -0.1 Financing Composite -1,812 -2.1 -2,360 -2.9 -3,731 -5.0 PSERS Total Fund Composite Blended Policy (Total Plan) 60% Gl Equity / 40% U.S.

Agg Cash & Enhanced Cash 4,593 5.4 3,782 4.6 3,660 4.9 Fiscal Year to Date Performance Attribution Fiscal Year to Date Performance Commentary Relative to Policy PSERS total fund returned 6.12% fiscal year to date and Investment Pool Performance 6.1% underperformed its blended policy benchmark return of 7.78% by 165 basis points.

Strategic Asset Allocation 7.8% Asset allocation differences from policy contributed -0.11% to the total fund return for the fiscal year to date period. Slightly higher allocations relative to policy within Gold were most beneficial (+0.32%). A small Over/Under Allocation -0.1 % underweight to public commodities (excluding Gold) detracted -57 bps from the total fund return FYTD.

Manager Benchmark Selection -0.1 % Manager performance detracted -1.48% from the total fund return fiscal year to date, primarily due to performance within private equity Over/Under Manager Benchmark -1.5 % (-0.96%) and non-U.S. Manager performance within private infrastructure was most beneficial, contributing 0.22% for the FYTD period.

Page32 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Executive Summary Period Ending: March 31, 2026 Performance vs. InvMetrics Public DB > $5Bn Plan Allocation vs. InvMetrics Public DB > $5Bn 16.0 60.0 12.0 40.0 8.0 Allocation (% ) Return 4.0 20.0 0.0 0.0 -4.0 1 Quarter Fiscal YTD 3 Yrs 5 Yrs -20.0 ¢ PSERS Total Fund Composite 0.4 (14) 6.1 (62) 8.5 (78) 7.4 (31) Total Fixed Hedge Private Total Real Total Equity p Blended Policy (Total Plan) 1.3 (1) 7.8 (3) 8.7 (71) 6.7 (52) Income Funds Equity Estate ¿ 60% Gl Equity / 40% U.S.

Agg -1.9 (100) 5.9 (66) 11.3 (18) 5.9 (87) ¢ PSERS Total Fund Composite 37.2 (70) 30.7 (19) 0.9 (84) 11.5 (55) 12.7 (4) Median -0.3 6.4 9.3 6.8 Median 40.6 24.3 6.1 12.1 6.6 5 Year Risk/Return vs. InvMetrics Public DB > $5B Fiscal Year to Date Performance Commentary Relative to Peers 10.0 PSERS ranked behind the median peer (62nd percentile) for the fiscal year 9.0 to date period.

The median peer returned 6.4% compared to PSERS Annualized Return return of 6.1%. The global 60/40 portfolio returned 5.9%. 8.0 Fixed income positioning was a headwind relative to peers FYTD. PSERS 7.0 allocates 30.7% of the portfolio to fixed income compared to the median peer allocation of 24.3%. Broadly speaking, fixed income underperformed 6.0 relative to public equities and real assets.

5.0 Private real estate positioning was also a headwind relative to peers. 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 PSERS allocates 12.7% of assets to real estate and private infrastructure, Annualized Standard Deviation which ranks in the top 4% among peers. Within that allocation, 6.6% is dedicated to private real estate, which posted negative returns FYTD and Standard Return underperformed relative to other asset classes.

Deviation £ PSERS Total Fund Composite ¢ 7.4 6.4 ¿ Blended Policy (Total Plan) ¯ 6.7 6.5 ˜ 60% Gl Equity / 40% U.S. Agg  5.9 10.3 ¾ Median 6.8 6.3 In the plan peer allocations, total equity includes public infrastructure, but does not include private equity. Total real estate includes private infrastructure.

Page43 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Trailing Period Performance (Net of Fees) Period Ending: March 31, 2026 % of 1 Inception Market Value YTD Fiscal YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs 25 Yrs Inception Portfolio Quarter Date PSERS Total Fund Composite 85,702,782,669 100.0 0.37 0.37 6.12 10.26 8.49 7.42 8.41 7.46 6.44 7.09 9.39 07/1/1982 Blended Policy (Total Plan) 1.28 1.28 7.78 11.89 8.68 6.73 7.97 7.08 6.24 6.53 - Value Add -0.90 -0.90 -1.65 -1.64 -0.20 0.69 0.44 0.37 0.20 0.56 - Total Public Market Assets Composite 59,152,169,786 69.0 0.15 0.15 7.02 12.88 10.48 6.34 7.55 6.21 5.66 - 6.75 07/1/2002 Blended Policy (Public Market Assets) 0.85 0.85 8.08 13.30 9.76 5.57 7.00 5.49 4.94 - 6.00 Value Add -0.70 -0.70 -1.06 -0.42 0.72 0.76 0.55 0.72 0.72 - 0.75 Total Private Market Assets Composite 26,550,612,883 31.0 0.92 0.92 4.40 5.14 5.21 8.81 10.00 10.00 8.72 9.39 9.90 10/1/1992 Blended Policy (Private Market Assets) 2.08 2.08 6.96 8.91 6.33 7.77 9.44 10.10 8.94 8.30 - Value Add -1.16 -1.16 -2.56 -3.76 -1.12 1.04 0.56 -0.10 -0.21 1.09 - Total Public Global and Private Equity Exposure 36,181,010,526 42.2 -2.12 -2.12 5.39 13.34 11.61 9.45 11.87 - - - 10.37 10/1/2014 Blended Policy (Total Equity Exposure) -0.79 -0.79 9.23 17.73 13.26 9.97 12.06 - - - 10.76 Value Add -1.32 -1.32 -3.84 -4.39 -1.66 -0.52 -0.19 - - - -0.39 Total Public Global Equity Composite 26,312,258,008 30.7 -3.07 -3.07 6.38 18.08 15.66 8.25 11.30 9.79 8.31 8.46 7.91 07/1/1998 Blended Policy (Public Equity) -2.54 -2.54 8.43 19.86 16.18 8.79 10.90 9.33 7.89 7.88 7.15 Value Add -0.53 -0.53 -2.05 -1.78 -0.52 -0.54 0.40 0.46 0.42 0.58 0.76 Total US Equity Composite 15,376,172,444 17.9 -3.60 -3.60 6.66 17.89 17.38 11.03 13.65 12.81 10.09 9.46 8.49 01/1/2000 Blended Policy (Tot US Eq) -3.81 -3.81 6.59 17.85 17.39 10.97 13.63 12.74 10.20 9.34 7.86 Value Add 0.20 0.20 0.07 0.04 -0.02 0.06 0.02 0.06 -0.11 0.12 0.63 Total Non-US Equity Composite 10,934,133,942 12.8 -2.34 -2.34 5.91 18.23 13.99 6.18 9.65 7.62 7.10 8.22 6.59 01/1/2000 Blended Policy (Total Non-US Eq) -0.68 -0.68 11.19 22.82 14.68 7.00 9.02 6.85 6.25 7.33 5.74 Value Add -1.67 -1.67 -5.28 -4.59 -0.69 -0.82 0.62 0.78 0.85 0.89 0.85 Total Private Equity 9,868,752,518 11.5 0.52 0.52 3.00 2.73 4.33 9.71 12.03 10.91 10.95 10.50 10.61 07/1/1998 Blended Policy (Private Equity) (1Q Lag) 3.52 3.52 10.96 13.14 8.74 10.83 12.89 12.37 10.46 8.71 8.00 Value Add -3.00 -3.00 -7.96 -10.40 -4.41 -1.12 -0.87 -1.45 0.48 1.79 2.61 Page54 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Trailing Period Performance (Net of Fees) Period Ending: March 31, 2026 % of 1 Inception Market Value YTD Fiscal YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs 25 Yrs Inception Portfolio Quarter Date Total Fixed Income Exposure 26,331,397,964 30.7 0.34 0.34 3.57 4.22 4.07 2.28 4.45 4.87 5.74 5.95 5.85 07/1/1998 Blended Policy (Total FI) 0.28 0.28 3.48 4.05 4.15 1.56 3.39 3.35 4.67 4.86 4.94 Value Add 0.06 0.06 0.09 0.16 -0.07 0.72 1.06 1.52 1.07 1.09 0.91 Public Fixed Income 20,554,486,786 24.0 -0.13 -0.13 2.73 3.15 2.84 0.40 - - - - 1.43 07/1/2019 Blended Policy (Public Fixed Income) -0.14 -0.14 2.66 3.08 2.46 -0.24 - - - - 0.83 Value Add 0.01 0.01 0.07 0.07 0.38 0.63 - - - - 0.60 Investment Grade Composite 12,191,888,818 14.2 -0.23 -0.23 2.59 2.21 0.02 -3.45 0.00 - - - 0.96 10/1/2014 Blended Policy (Investment Grade) -0.21 -0.21 2.59 2.42 0.04 -3.47 -0.10 - - - 0.56 Value Add -0.02 -0.02 0.00 -0.22 -0.02 0.02 0.10 - - - 0.40 Credit-Related 2,620,247,522 3.1 -0.37 -0.37 3.94 7.60 9.68 5.15 6.77 - - - 5.60 10/1/2014 Blended Policy (Credit-Related) -0.50 -0.50 3.36 7.01 7.85 3.16 4.65 - - - 3.71 Value Add 0.13 0.13 0.58 0.59 1.83 1.99 2.12 - - - 1.89 Inflation Protected (Unlevered) 5,742,347,671 6.7 0.20 0.20 2.44 2.85 3.02 1.48 2.63 4.01 5.64 - 5.39 04/1/2004 Blended Policy (Inflation Protected) 0.22 0.22 2.44 2.83 2.99 1.05 3.02 2.97 3.79 - 3.61 Value Add -0.01 -0.01 0.00 0.02 0.03 0.43 -0.39 1.04 1.85 - 1.78 Private Credit Composite 5,776,911,178 6.7 2.00 2.00 6.61 8.03 8.22 8.51 8.55 7.81 7.82 8.08 7.89 10/1/1999 Blended Policy (Private Credit) (1Q Lag) 1.80 1.80 6.47 7.52 10.01 7.96 7.92 6.92 7.49 7.87 7.48 Value Add 0.20 0.20 0.13 0.52 -1.79 0.55 0.63 0.89 0.33 0.21 0.42 Page65 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Trailing Period Performance (Net of Fees) Period Ending: March 31, 2026 % of 1 Inception Market Value YTD Fiscal YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs 25 Yrs Inception Portfolio Quarter Date Total Real Asset Exposure (Unlevered) 19,623,400,954 22.9 5.35 5.35 11.28 13.07 9.37 9.92 7.79 - - - 6.11 10/1/2014 Blended Policy (Real Assets) 7.03 7.03 11.50 12.70 7.40 7.84 6.63 - - - 5.16 Value Add -1.68 -1.68 -0.22 0.37 1.97 2.08 1.16 - - - 0.95 Public Real Assets (Unlevered) 9,504,939,218 11.1 10.54 10.54 19.12 21.39 14.90 11.66 7.59 - - - 2.73 10/1/2014 Blended Policy (Real Assets x Private) 14.17 14.17 21.26 21.04 14.14 11.02 7.23 - - - 2.93 Value Add -3.63 -3.63 -2.13 0.35 0.75 0.65 0.36 - - - -0.20 Public Real Estate Composite (Unlevered) 1,061,448,199 1.2 2.54 2.54 6.53 8.92 8.66 4.08 4.23 5.50 4.17 8.00 7.50 07/1/1998 Blended Policy (PTRES) 1.03 1.03 4.37 7.18 7.50 3.32 3.91 4.99 3.83 7.33 6.92 Value Add 1.51 1.51 2.16 1.74 1.16 0.76 0.32 0.51 0.34 0.67 0.59 Public Infrastructure (Unlevered) 5,547,244,842 6.5 8.74 8.74 13.84 17.21 12.61 10.44 5.51 - - - 5.65 11/1/2015 Blended Policy (Infrastructure x Private) 8.81 8.81 13.39 15.09 11.50 9.20 5.46 - - - 5.50 Value Add -0.07 -0.07 0.45 2.12 1.11 1.24 0.06 - - - 0.16 Public Commodities Composite (Unlevered) 2,896,246,177 3.4 17.10 17.10 35.49 35.20 21.24 16.31 11.19 3.81 - - 4.37 11/1/2006 Blended Policy (Commodities) 24.41 24.41 36.49 32.29 18.82 14.85 8.57 1.54 - - 1.64 Value Add -7.32 -7.32 -1.00 2.91 2.43 1.46 2.62 2.27 - - 2.73 Private Real Assets 10,118,461,736 11.8 0.91 0.91 4.72 6.14 4.07 10.33 - - - - 9.63 07/1/2019 Private Real Estate Composite 5,696,498,772 6.6 -1.54 -1.54 -0.26 0.23 -0.75 7.01 8.16 9.34 5.52 8.08 8.87 07/1/1996 Blended Policy (Private Real Estate) (1Q Lag) -0.05 -0.05 1.15 1.87 -2.94 3.55 5.49 7.44 6.52 7.48 8.33 Value Add -1.49 -1.49 -1.41 -1.64 2.20 3.46 2.67 1.90 -1.00 0.60 0.54 Private Infrastructure Composite 4,111,802,919 4.8 4.40 4.40 11.40 15.41 16.10 18.21 - - - - 19.41 03/1/2021 Blended Policy (Private Infrastructure) (1Q Lag) 1.97 1.97 6.06 11.47 9.00 8.39 - - - - 8.19 Value Add 2.43 2.43 5.33 3.95 7.10 9.82 - - - - 11.22 Private Commodities Composite 310,160,045 0.4 2.65 2.65 24.52 17.69 0.24 8.53 - - - - 4.97 11/1/2018 Page76 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Trailing Period Performance (Net of Fees) Period Ending: March 31, 2026 % of 1 Inception Market Value YTD Fiscal YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs 25 Yrs Inception Portfolio Quarter Date Total Opportunistic 786,487,452 0.9 -1.77 -1.77 1.78 3.57 5.10 5.47 5.22 4.58 5.11 - 5.17 10/1/2005 Financing Composite -1,812,415,282 -2.1 0.99 0.99 3.12 4.35 4.90 3.52 - - - - 2.81 07/1/2019 Blended Policy (Financing) 0.92 0.92 2.96 4.07 4.80 3.57 - - - - 2.94 Value Add 0.07 0.07 0.17 0.28 0.10 -0.05 - - - - -0.13 Cash & Enhanced Cash Composite 4,592,901,055 5.4 0.95 0.95 3.23 4.42 5.07 3.95 2.62 2.26 1.49 1.37 1.20 07/1/1998 ICE BofA U.S.

Treasury Bills 0-3M Index 0.88 0.88 3.01 4.11 4.82 3.41 2.26 1.52 1.66 1.76 2.10 Value Add 0.07 0.07 0.22 0.31 0.25 0.55 0.36 0.75 -0.17 -0.38 -0.90 Page87 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Total Fund Attribution (Net of Fees) Quarter Ending: March 31, 2026 Performance Attribution Investment Pool Performance 0.37% Strategic Asset Allocation 1.28% Over/Under Allocation -0.27 % Manager Benchmark Selection -0.14 % Over/Under Manager Benchmark -0.50 % -0.60 % -0.30 % 0.00% 0.30% 0.60% 0.90% 1.20% 1.50% Strategic Asset Allocation: 1.28% Over/Under Allocation: -0.27 % Manager Benchmark Selection: -0.14 % Over/Under Manager Benchmark: -0.50 % U.S.

Equity -0.77 % 0.07% 0.00% 0.04% Non-U.S. Equity -0.02 % -0.08 % -0.06 % -0.18 % Private Equity 0.44% -0.02 % 0.00% -0.35 % U.S. Core Plus Fixed Income 0.00% 0.00% 0.00% 0.00% U.S. Treasuries -0.03 % -0.01 % 0.00% 0.00% U.S. High Yield -0.02 % 0.01% 0.00% 0.00% Emerging Markets Fixed Income 0.00% -0.01 % 0.00% 0.01% Inflation Protected 0.02% 0.00% 0.00% 0.00% Private Credit 0.13% -0.01 % 0.00% 0.01% Public Infrastructure 0.48% 0.06% 0.00% 0.00% Public Commodities ex Gold 0.93% -0.37 % 0.00% -0.11 % Gold Composite 0.00% 0.06% 0.00% 0.00% Public Real Estate 0.01% -0.01 % 0.00% 0.01% Private Infrastructure 0.09% 0.00% -0.08 % 0.19% Private Real Estate 0.00% 0.00% 0.00% -0.10 % Opportunistic 0.00% 0.01% 0.00% -0.03 % Cash & Enhanced Cash 0.04% 0.00% 0.00% 0.00% Net leverage -0.04 % 0.02% 0.00% 0.00% -1.60 % -0.80 % 0.00% 0.80% 1.60% -0.60 % -0.30 % 0.00% 0.30% -0.12 % -0.08 % -0.04 % 0.00% 0.04% -0.60 % -0.30 % 0.00% 0.30% Page98 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Total Fund Attribution (Net of Fees) Fiscal Year to Date Ending: March 31, 2026 Performance Attribution Investment Pool Performance 6.12% Strategic Asset Allocation 7.78% Over/Under Allocation -0.11 % Manager Benchmark Selection -0.07 % Over/Under Manager Benchmark -1.48 % -4.00 % -2.00 % 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Strategic Asset Allocation: 7.78% Over/Under Allocation: -0.11 % Manager Benchmark Selection: -0.07 % Over/Under Manager Benchmark: -1.48 % U.S.

Equity 1.41% 0.06% -0.09 % -0.62 % Private Equity 1.38% -0.04 % 0.00% -0.96 % U.S. Core Plus Fixed Income 0.25% -0.06 % 0.00% 0.02% U.S. High Yield 0.11% -0.03 % 0.00% -0.02 % Emerging Markets Fixed Income 0.00% 0.03% 0.00% 0.03% Inflation Protected 0.17% 0.00% 0.00% 0.00% Private Credit 0.49% -0.02 % 0.00% 0.04% Public Infrastructure 0.77% 0.07% 0.00% 0.03% Public Commodities ex Gold 1.38% -0.57 % 0.00% -0.11 % Gold Composite 0.00% 0.32% 0.00% 0.00% Public Real Estate 0.03% 0.01% 0.00% 0.02% Private Infrastructure 0.27% 0.00% 0.02% 0.22% Private Real Estate 0.08% 0.00% 0.00% -0.10 % Opportunistic 0.00% 0.07% 0.00% -0.05 % Cash & Enhanced Cash 0.14% -0.02 % 0.00% 0.01% Net leverage -0.13 % 0.06% 0.00% -0.01 % -0.60 % 0.00% 0.60% 1.20% 1.80% -1.00 % -0.50 % 0.00% 0.50% -0.12 % -0.06 % 0.00% 0.06% -1.20 % -0.60 % 0.00% 0.60% 109 Page PSERS Total Fund Pennsylvania Public School Employees' Retirement System Asset Allocation Compliance Period Ending: March 31, 2026 Equity 36,181,010,525.7 (42.2%) Fixed Income 26,331,397,964.4 (30.7%) Real Assets 19,623,400,954.3 (22.9%) Opportunistic 786,487,451.7 (0.9%) Cash and Equivalents 2,780,485,773.0 (3.2%) -16.0 % -8.0 % 0.0% 8.0% 16.0% 24.0% 32.0% 40.0% 48.0% 56.0% Policy Range Policy In Policy Outside Policy Current Current Minimum Maximum Policy Over / Under Balance Allocation Allocation Allocation Allocation Policy ($) (%) (%) (%) (%) (%) Equity 36,181,010,526 42.2 39.0 49.0 44.0 -1.8 Fixed Income 26,331,397,964 30.7 29.0 39.0 34.0 -3.3 Real Assets 19,623,400,954 22.9 17.0 27.0 22.0 0.9 Opportunistic 786,487,452 0.9 0.0 5.0 0.0 0.9 Cash and Equivalents 2,780,485,773 3.2 -10.0 10.0 0.0 3.2 Total 85,702,782,669 100.0 100.0 0.0 Page110 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Growth of $1 Dollar Period Ending: March 31, 2026 5 Years 10 Years $1.80 $2.40 $2.30 $1.70 $2.00 $1.50 $1.30 $1.70 $1.10 $1.40 $0.90 $1.10 $0.70 $0.80 $0.50 $0.50 3/21 9/21 3/22 9/22 3/23 9/23 3/24 9/24 3/25 9/25 3/26 3/16 3/17 3/18 3/19 3/20 3/21 3/22 3/23 3/24 3/25 3/26 PSERS Total Fund Composite Blended Policy (Total Plan) 60% Gl Equity / 40% U.S.

Agg PSERS Total Fund Composite Blended Policy (Total Plan) 60% Gl Equity / 40% U.S. Agg Standard Excess Sharpe Standard Excess Sharpe Annual Return Annual Return Deviation Return Ratio Deviation Return Ratio PSERS 7.42 6.39 4.13 0.65 PSERS 8.41 6.43 6.13 0.93 60% GI Equity / 40% U.S. Agg 5.87 10.29 2.98 0.30 60% GI Equity / 40% U.S.

Agg 7.60 10.36 5.70 0.55 Policy Benchmark 6.73 6.49 3.48 0.55 Policy Benchmark 7.97 6.43 5.72 0.87 Cash 3.34 1.00 0.00 - Cash 2.26 0.94 0.01 0.56 Page1211 PSERS Total Fund Pennsylvania Public School Employees' Retirement System Growth of $1 Dollar Period Ending: March 31, 2026 15 Years 25 Years $3.20 $6.40 $6.10 $2.90 $5.30 $2.50 $4.50 $2.10 $3.70 $1.70 $2.90 $1.30 $2.10 $0.90 $1.30 $0.50 $0.50 3/11 9/12 3/14 9/15 3/17 9/18 3/20 9/21 3/23 9/24 3/26 3/01 6/03 9/05 12/07 3/10 6/12 9/14 12/16 3/19 6/21 9/23 3/26 PSERS Total Fund Composite Blended Policy (Total Plan) 60% Gl Equity / 40% U.S.

Source fold: 2026 1Q Total Fund Summary PDF (Cerity Partners). Verify against the live page or PDF before citing beyond this page.

Annex: SAFR FY2025 fold

Folded language from the Summary Annual Financial Report for fiscal years ended 30 June 2025 and 2024, including the 4 December 2025 Interim ED letter.

PSERS Summary Annual Financial Report PA Public School Employees’ Retirement System Summary Annual Financial Report Fiscal Years Ended June 30, 2025 and 2024 A Component Unit of the Commonwealth of Pennsylvania 1 TABLE OF CONTENTS Message from the Executive Director 1 About PSERS Board of Trustees Strategic Plan 2-4 Internal Controls and Reporting Budgetary and Financial Governance PSERS Defined Benefit (DB) Plan Highlights Investment Highlights 5-9 Pension Amounts Pension Map PSERS Defined Contribution (DC) Plan Highlights 10 PSERS Health Insurance Premium Assistance Program 11 (Premium Assistance) Highlights PSERS Health Options Program (HOP) Highlights 12 Condensed Financial Statements 13 For more detailed information, refer to PSERS Annual Comprehensive Financial Report (ACFR) on our website at pa.gov/PSERS under Investment and Financial Reporting>Financial Reports.

PSERS Summary Annual Financial Report MESSAGE FROM THE EXECUTIVE DIRECTOR December 4, 2025 I am pleased to present the Summary Annual Financial As a result of higher investment performance and Report (SAFR) for the fiscal year ended June 30, 2025, consistent full employer contributions, PSERS’ funded (FY 2025) on behalf of the Pennsylvania Public School ratio on a fair-value basis increased to 68.04% as of June Employees’ Retirement System (PSERS) Board of 30, 2025, reflecting steady improvement in the System’s Trustees and staff.

This report summarizes the PSERS financial position. On an actuarial basis, the funded ratio Annual Comprehensive Financial Report (ACFR), which was 64.8% as of June 30, 2024, the most recent actuarial is posted online at pa.gov/PSERS. Internal Controls and Oversight are Strong Members Receive Exceptional Service FY 2025 marked the successful completion of an PSERS serves its members via a lean and efficient independent audit using SOC 1 Type 2 standards.

An independent, SOC audit provided a high level of reasonable assurance international benchmarking survey evaluated the for the control objectives in scope, confirming that agency’s costs and service performance compared to PSERS’ controls were suitably designed and operating similar public pension funds.

It showed that PSERS had effectively throughout the testing period. Completion a 22% lower pension administration cost per member – of this multi-year effort reflects PSERS’ ongoing saving approximately $15.8 million annually. commitment to accountability, transparency, and sound Despite controlled costs, PSERS has award-winning financial management.

The Health Options Program’s PSERS’ Funded Status Continues to Improve prescription drug plan received 4.5 stars, a near perfect Investment income remains a major source of revenue consumer-services rating, from the federal government for the System, accounting for 50% of total revenues for the 2026 plan year.

It also received the Pharmacy during the 25-year period from FY 2001 to FY 2025. Quality Alliance Excellence in Quality Award. The investment portfolio, which is one component The agency also supports members by working to of the System’s net position, totaled $81.4 billion, ensure the timely distribution of their retirement benefits.

For FY 2025, the It provides in-person and virtual member counseling to time-weighted net rate of return on the System’s reduce delays caused by retirement application errors investments was 9.67%. The annualized time-weighted and trains employers – there were a record 533 trainings rate of return for the ten-year period ended June 30, in FY 2025 – to provide accurate member information.

2025, was 7.48%, exceeding PSERS’ current long- term investment rate of return assumption of 7.00%. Boosting PSERS’ funded status and providing members with exceptional service will always drive agency The Employer Contribution Rate from school employers decisions, even as staff changes. It is my honor to serve and the Commonwealth is another critical component of as Interim Executive Director following Terrill J.

For the ninth consecutive year, Governor Josh retirement as Executive Director in June with nearly Shapiro and the Legislature approved full funding of the 40 years of public service to the Commonwealth to actuarially determined employer contributions for FY support the retirement security of its more than 500,000 2025.

This continued support has strengthened PSERS’ members. financial position and sustained the Commonwealth’s Respectfully, commitment to Pennsylvania’s teachers and education professionals since FY 2017. Benjamin Cotton Interim Executive Director 1 PSERS Summary Annual Financial Report ABOUT PSERS INTRODUCTION As of June 30, 2025 Established in 1917, PSERS is one of the oldest pension plans in the United OUR MISSION States.

PSERS is a governmental, cost-sharing, multiple employer pension plan to which public school employers, the Commonwealth, and school To be a partner with our members employees (members) contribute. PSERS administers a traditional Defined to fulfill the promise of a secure Benefit (DB) Plan and a Defined Contribution (DC) Plan as well as two retirement.

postemployment healthcare programs, the Health Insurance Premium Assistance Program (Premium Assistance) and the Health Options Program OUR VISION (HOP), for its annuitants. PSERS currently serves more than 500,000 active, To be a trusted partner in delivering terminated vested, and retired public school employees.

exceptional retirement services and benefits. PSERS is administered by a staff of 350 and has 763 reporting units as of June 30, 2025. PSERS is headquartered in Harrisburg, Pennsylvania, and OUR VALUES also has seven field offices in strategic areas of the Commonwealth to enable direct contact with its members and employers.

Public accountability and transparency Staff growth and development Exceptional levels of service Respect for our members, stakeholders, and staff Stewardship of resources and investments 2 PSERS Summary Annual Financial Report STRATEGIC PLAN In August 2023, the Board formally adopted a strategic plan framework for our organization.

To ensure that our strategic plan was created with a sense of purpose and built on a strong foundation, we revisited our mission, vision, and values. Guided by our functions, the Board identified six strategic priorities. • Enhance member satisfaction throughout the customer experience. • Enhance comprehensive and transparent financial reporting and forecasting.

Source fold: 2025 SAFR final PDF. Verify against the live page or PDF before citing beyond this page.

Annex: ACFR FY2025 fold

Folded language from the Annual Comprehensive Financial Report for FYE 30 June 2025 (introductory / board / awards material opened for this pack).

Cotton Interim Executive Director & Chief Investment Officer Report prepared by the Public School Employees’ Retirement System Office of Financial Management Staff with support from many areas of PSERS Introductory Section Table of Contents Section One – Introductory ..........................................................................................................................................

5 Letter of Transmittal .......................................................................................................................................................... 6 PSERS at a Glance...........................................................................................................................................................

14 Pension Benefits by County............................................................................................................................................. 15 Pension Benefit Amounts .................................................................................................................................................

16 PSERS Organizational Structure .................................................................................................................................... 17 PSERS Regional Offices ..................................................................................................................................................

20 PSERS Board of Trustees ............................................................................................................................................... 21 PSERS Awards ..................................................................................................................................................................

22 Section Two – Financial ................................................................................................................................................ 23 Report of Independent Public Accountants ...................................................................................................................

24 Management’s Discussion and Analysis........................................................................................................................ 27 Financial Statements Statements of Fiduciary Net Position as of June 30, 2025 and 2024 ................................................................

40 Statements of Changes in Fiduciary Net Position Years ended June 30, 2025 and 2024 ............................. 42 Notes to Financial Statements ................................................................................................................................. 44 Required Supplementary Information ............................................................................................................................

Schedule 1 – Schedule of Changes in the Employer Net Pension Liability...................................................... 76 Schedule 2 – Schedule of Employer Net Pension Liability.................................................................................. 78 Schedule 3 – Schedule of Employer Pension Contributions ...............................................................................

79 Schedule 4 – Schedule of Changes in the Employer Net OPEB (Premium Assistance) Liability ................. 80 Schedule 5 – Schedule of Employer Net OPEB (Premium Assistance) Liability ............................................. 82 Schedule 6 – Schedule of Employer OPEB (Premium Assistance) Contributions ..........................................

83 Schedule 7 – Schedule of Investment Returns - Pension and OPEB ............................................................... 84 Notes to Required Supplementary Information ..................................................................................................... 85 Other Supplementary Information...................................................................................................................................

Supplementary Schedule 1 – Schedule of Administrative and Investment Expenses .................................... 89 Supplementary Schedule 2 – Summary of Investment Expenses ..................................................................... 90 Supplementary Schedule 3 – Schedule of Payments to Non-Investment Consultants ..................................

91 Section Three – Investment .......................................................................................................................................... 93 Report on Investment Activity and Policies ...................................................................................................................

94 Annualized Time- Weighted Returns (%) Net of Fees ................................................................................................. 98 Portfolio Summary Statistics Asset Allocation Basis as of June 30, 2025................................................................ 99 Comparison of Actual Portfolio Distribution to Asset Allocation Plan as of June 30, 2025 ....................................

100 Graph – Comparison of Actual Portfolio Distribution to Asset Allocation Plan......................................................... 100 Graph – Portfolio Capital Distribution 10 Year Trend ................................................................................................... 101 PAGE 2 PSERS Introductory Section Table of Contents (Continued) 10 Largest Holdings Schedules Equity ...........................................................................................................................................................................

102 Fixed Income............................................................................................................................................................... 102 Postemployment Healthcare Investments..............................................................................................................

Source fold: PSERS ACFR FY2025 PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Gallagher 30 Jun 2025 valuation fold

Folded language from Gallagher’s actuarial valuation as of 30 June 2025 (letter 28 February 2026): 66.6% funded ratio, 33.59% FY2026/27 employer rate.

Pennsylvania Public School Employees’ Retirement System Actuarial Valuation Report June 30, 2025 1205 Westlakes Drive Suite 290 Berwyn, PA 19312 February 28, 2026 Board of Trustees Pennsylvania Public School Employees’ Retirement System 5 North 5th Street Harrisburg, PA 17101 Ladies and Gentlemen: This report presents the results of the annual actuarial valuation of the Pennsylvania Public School Employees’ Retirement System (Retirement System or PSERS) as of June 30, 2025.

The valuation takes into account all of the promised benefits to which members are entitled as of June 30, 2025, including pension and survivor benefits, and, as required by the Public School Employees’ Retirement Code, 24 Pa. (Retirement Code), is the basis for the contribution rate for fiscal year 2026/2027.

In addition, the contribution rate indicated in the report includes a rate for anticipated employer contributions to the Health Insurance Premium Assistance account for fiscal year 2026/2027, and to the Pennsylvania Employees’ Defined Contribution Plan (DC Plan) for anticipated Class T-G, Class T-H and Class DC participants on or after July 1, 2026 and prior to July 1, 2027.

As required under Section 8502(j) of the Retirement Code, experience studies are performed once in every five- year period. This valuation was prepared on the basis of the demographic and economic assumptions that were recommended on the basis of an Experience Review covering the period from July 1, 2015 to June 30, 2020, and adopted by the Board of Trustees at its March 5, 2021, June 11, 2021, and August 6, 2021 meetings.

The valuation also reflects the recommended changes to the administrative option factors, which were adopted by the Board at its August 6 meeting and implemented July 1, 2022. As mandated by the Retirement Code, these assumptions will remain in effect for valuation purposes until such time as the Board of Trustees adopts revised assumptions and/or administrative option factors.

This report addresses the funding requirements of PSERS only. Financial reporting required under applicable standards of the Governmental Accounting Standards Board (GASB) are addressed in separate reports. Assets and Membership Data The Retirement System provided the individual data for members and DC Plan participants used in the valuation.

While we did not audit the data, we did perform tests for internal consistency and reasonableness. The amount of assets in the trust fund taken into account in the valuation was based on statements furnished by the Retirement System. The accuracy of the results presented in this report is dependent on the accuracy of the data provided.

Funding Adequacy The valuation results indicate that the employer contribution rate for fiscal year 2026/2027 is 33.59%, which includes a rate of 0.51% for employer contributions to the DC Plan. This is an estimated average DC contribution rate. The actual employer DC contribution rate applicable to each participating employer will be based on the employer’s Class T-G, Class T-H, and Class DC membership/participation.

As of June 30, 2025, the total funded ratio of the plan (for Pensions and Health Insurance Premium Assistance combined) is 66.6%, based on the accrued liability and actuarial value of assets calculated under the funding requirements of Section 8328 of the Retirement Code. Board of Trustees Pennsylvania Public School Employees’ Retirement System February 28, 2026 Page 2 For the eleventh consecutive year, the PSERS Board has certified the full employer contribution rate calculated by the actuary.

This follows 15 years in which contributions to the Retirement System were statutorily constrained to be less than the actuarially determined amounts. Receipt of the full actuarially determined employer contribution is an essential step to bring PSERS back to a fully funded status. Full actuarial funding from employers, along with member contributions and investment income, are necessary sources of funds for the amortization of the unfunded liability of the Retirement System.

Unless stated otherwise, references to “funded ratio” and “unfunded accrued liability” are measured using the actuarial value of assets. It should be noted that if the same measurements were made using the market value of assets, different funded ratios and unfunded accrued liabilities would result. Moreover, the funded ratio presented is appropriate for evaluating the need and level of future contributions but makes no assessment regarding the funded status of the Retirement System if it were to settle (i.e., purchase annuities to cover) a portion or all of its liabilities.

Assuming that contributions are made at the level developed in the actuarial valuation and no future experience gains or losses arise, future expected contributions are expected to remain relatively level as a percent of payroll and the Retirement System’s funded status is expected to increase. Financial Results and Membership Data Detailed summaries of the financial results of the valuation and membership data used in preparing the valuation are shown in the valuation report.

The actuaries prepared supporting schedules included in the Actuarial and Statistical Section of the PSERS Annual Comprehensive Financial Report (ACFR) and also provided historical data schedules included in the Financial Section of the ACFR. Use of Models Actuarial Standard of Practice No. 56 (ASOP 56) provides guidance to actuaries when performing actuarial services with respect to designing, developing, selecting, modifying, using, reviewing, or evaluating models.

Gallagher uses the following:  The GEMS® Economic Scenario Generator from Conning & Company was used to assess the reasonability of the interest rate used for the valuation. GEMS® uses a multifactor model to create internally consistent, realistic economic scenarios (paths) that reflect the current economic environment as a starting point.

Asset class correlations may vary from year to year (just as in the real world), as well as from path to path. The model generates results that are not normally distributed, with fatter tails, and should therefore estimate the probabilities of rare events more realistically than a pure mean-variance model.

 Third-party software in the performance of annual actuarial valuations and projections to calculate the liabilities associated with the provisions of the Retirement System using data and assumptions as of the measurement date under the funding methods specified in this report.  An internally developed model that applies applicable funding methods and policies to the liabilities derived from the output of the third-party software and other inputs, such as System assets and contributions, to generate many of the exhibits found in this report.

Source fold: Actuarial Valuation Report June 30 2025 PDF. Verify against the live page or PDF before citing beyond this page.

Annex: IPS October 2025 fold

Folded language from the Investment Policy Statement adopted 23 October 2025 (introduction, purpose, fiduciary standard, philosophy).

Investment Policy Statement of the Commonwealth of Pennsylvania Public School Employees’ Retirement Board As adopted by the Board of Trustees on October 23, 2025 Revision History: December 3, 2020 March 5, 2021 December 17, 2021 March 15, 2022 August 5, 2022 August 11, 2023 March 22, 2024 May 31, 2024 August 16, 2024 October 25, 2024 June 13, 2025 October 23, 2025 Table of Contents I.

Definitions Investment Policy Statement October 2025 Page 2 of 32 I. Introduction Established on July 18, 1917, with operations commencing in 1919, the Pennsylvania Public School Employees’ Retirement System (PSERS or the System,) provides retirement benefits to public school employees of the Commonwealth of Pennsylvania.

The Board The members of the PSERS Board of Trustees (“the Board”) are vested with and exercise exclusive control and management of the System, including the investment of its assets. The Board appoints staff and retains outside managers, consultants and others as needed to assist it in performing its duties, in accordance with section III of this Policy in which the Board has defined the roles and responsibilities of such parties.

Mission To be a partner with our members to fulfill the promise of a secure retirement. Fiduciary Standard Pursuant to the Board’s enabling legislation, the members of the Board, employees of the Board, and their agents are fiduciaries to the System’s members and beneficiaries and must invest and manage the fund for exclusive benefit of the System’s members and beneficiaries.

As such, they must act consistent with the duty of prudence as well as the duty of loyalty. In performance of their duties, the trustees shall exercise “that degree of judgment, skill and care under the circumstances then prevailing which persons of prudence, discretion and intelligence who are familiar with such matters exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the fund, considering the probable income to be derived therefrom as well as the probable safety of their capital.” 24 Pa.

The System shall at all times be managed in accordance with all applicable state and federal laws, rules, and regulations, as well as this Investment Policy Statement and other applicable policies of the Board. Investment Policy Statement October 2025 Page 3 of 32 II. Purpose The purpose of this Investment Policy Statement (the “Policy’) is to provide clear guidelines for the management of the assets within the PSERS Defined Benefit Fund (the “Fund”) by or on behalf of the Board.

This Policy establishes policies and guidelines for the investment practices of the Board. The Board shall endeavor to review and revise the Policy every three years and make changes as necessary. The Policy outlines objectives, goals, restrictions, and responsibilities to assure that: 1. The Board, Staff, Investment Consultants, Investment Managers, and the State Treasurer clearly understand the objectives and policies of the Board and the System; 2.

The Investment Managers shall be given guidance and limitations on the investment of the System’s assets; and, 3. The Board has a meaningful basis for evaluating the investment performance of individual Investment Managers, as well as for evaluating overall success in meeting its objectives. Investment Policy Statement October 2025 Page 4 of 32 III.

Roles and Responsibilities The Board establishes roles and responsibilities for PSERS’ investment program. The Board (Board): Based on recommendations of its Investment Committee, the Board, as ultimate governing fiduciary, establishes investment policies and monitors compliance with its policies and progress made towards stated goals.

The Board establishes this Policy, including the Asset Allocation, investment performance benchmarks and risk tolerances it contains. The Board also appoints the Chief Investment Officer (CIO), External Managers, and Investment Consultants. The Board monitors the performance of the implementation function it has assigned for effectiveness and compliance with its policies, may direct the CIO, Asset Allocation Committee (AAC), Allocation Implementation Committee (AIC), or the Investment Office Professionals (IOP) to bring matters before them to the Board for its consideration prior to implementation, and will require reporting of the entities identified in this section sufficient to facilitate its fiduciary requirements.

Chief Investment Officer (CIO): The CIO serves as the liaison to The Board and senior staff administrator on all investment matters. The CIO oversees the implementation of Board policies through the management of the IOP, the development and implementation of investment procedures, implementation of tactical allocations within ranges established by the Board, authorization of investment guidelines, execution of investment contracts and other documents, and negotiation of reasonable compensation for investment-related service providers.

In overseeing PSERS’ investments and the operations related thereto, the CIO must exercise his or her professional skill and prudence in compliance with statutory requirements, prudent investment principles, sound business practices, and all Board policies, including this Policy. The CIO may delegate power and authority to the IOP to effectuate the prudent investment, protection, and management of PSERS’ investments.

Subject to this policy and the direction of the Board, the CIO shall have responsibility for adhering to the standards set forth by the Board in the management and control of PSERS’ investments. In exercising the CIO’s duty to act prudently, the CIO may accept or reject the recommendations of the AIC that PSERS appoint or discharge External Managers, forward recommendations to the Board to appoint External Managers or take direct action to discharge them, including for example selling interests in the secondary markets, following prior notification to the Board.

The CIO shall assign, modify, or discontinue the guidelines or strategies assigned to any Investment Manager, based on his or her prudent judgment and subject to contrary specific direction from the Board. The CIO shall make regular reports to the Board and provide full transparency to the Board with respect to investment activities.

The CIO is responsible for all IOP actions relative to the management of PSERS’ investments. In this regard, it is the responsibility of the CIO to be satisfied that all investment policies and directives of the Board are implemented. Investment Policy Statement October 2025 Page 5 of 32 Asset Allocation Committee (AAC): The AAC recommends to the CIO strategic asset allocation plans, new asset classes and benchmarks, and closely manages actual asset allocations.

The AAC shall adopt procedures and maintain meeting minutes. The CIO shall choose the Committee Chair (or Co-Chairs), and the Committee Chair (or Co- Chairs) shall choose the members of the Committee with representation from Private Investments, Public Investments, Operations, and Risk Management & Compliance.

Source fold: IPS adopted final PDF (23 Oct 2025). Verify against the live page or PDF before citing beyond this page.

Annex: Organization and Staff fold

Live Organization and Staff bios: Monson, Mills, Hudson, Cotton, Indelicato, Gentry, Lyman, Decker, Evans.

Organization and Staff Executive Director Uri Monson Mr. Monson was appointed Executive Director of PSERS in December 2025. In this role, he provides leadership and strategic direction for the system and oversees the agency operations, investment program, and service to more than 500,000 members. Before joining PSERS, Monson served as Pennsylvania’s Secretary of the Budget, where he led the Commonwealth’s finances with a focus on long-term fiscal responsibility and strategic growth.

Under Monson’s leadership, Pennsylvania released its first debt management policy, providing clear guidance on debt authorizations and repayment, and completed bond refinancing that will save taxpayers $193 million by 2035. During his tenure, the Commonwealth received its highest credit ratings in more than a decade, with Moody’s, Fitch, and S&P all affirming Pennsylvania’s positive outlook.

His previous experience spans nearly 30 years in senior roles across federal, state, and local government, including Deputy Superintendent of Operations and Chief Financial Officer (CFO) for the School District of Philadelphia, during which time the District improved its fiscal outlook to allow for a return to local control and achieved an investment level credit rating for the first time since 1977.

Prior to joining the School District, Monson served as the CFO of Montgomery County, Executive Director of the Pennsylvania Intergovernmental Cooperation Authority, and Assistant Budget Director for the City of Philadelphia. Monson also held multiple roles with the U.S. Department of Education and worked in the Office of the Vice President of the United States with the Reinventing Government initiative.

Monson earned a master’s degree in Public Policy from the Columbia University School of International and Public Affairs and a bachelor’s degree in Political Science from Columbia University, as well as a bachelor’s degree in Midrash from the Jewish Theological Seminary of America. Monson is an active member of his synagogue, served as Vice President and Treasurer of Camp Ramah in the Poconos, and is a former President of the Philadelphia Committee on City Policy.

He was named as a person to watch in Philadelphia Magazine’s 2009 “Best of Philly” Issue and cited as the top “Wonk” in the City. Monson currently resides in Wynnewood, PA with his wife and three children. The Executive Office is led by the Executive Director, who serves as the chief executive officer with overall responsibility for the management of the agency to achieve the objectives and strategic initiatives as established by the Board.

The position’s primary duty is to lead PSERS employees in meeting the agency mission by partnering with our members to fulfill the promise of a secure retirement and being a trusted partner in delivering exceptional retirement services and benefits. This position is responsible for providing leadership, advice, and counsel to the Board, and ensuring public trust and confidence in the agency.

Deputy Executive Director of Benefits and Director of Defined Contribution Investments Jennifer A. Mills has extensive knowledge of PSERS’ internal policies and business rules, and has been instrumental in the development and drafting of the Act 5 defined contribution plan document. She has been with PSERS since 2006 and most recently served as Deputy Chief Counsel in PSERS Office of Chief Counsel where she supervised the Benefit Division of the legal office that handled benefits and tax matters, and administrative hearings.

She regularly handled the complex and difficult legal issues at PSERS. Prior to serving as Deputy Chief Counsel, she represented PSERS and the Pennsylvania Municipal Retirement System in all benefit, personnel, Right-to-Know Law, legislative, and investment matters. Office of the Deputy Executive Director and Director of Defined Contribution Investments provides comprehensive leadership and oversight to assist the Executive Director in accomplishing the agency mission by maintaining oversight of the Bureau of Benefits Administration, Bureau of Communications and Counseling, the Health Insurance Office, and the agency Appeals Coordinator.

This includes managerial responsibility for PSERS membership related benefit functions for the agency’s Defined Benefit (DB) plan, the Defined Contribution (DC) plan, and the post-employment healthcare programs, namely: member and employer communications; member retirement counseling; member and employer data administration; benefits determinations and processing; member appeals; knowledge management of benefit policies and procedures; health insurance retirement programs including premium assistance; third-party contractor administration, and defined contribution contract investment management.

This office also oversees seven regional offices located throughout the Commonwealth that provide services to both active and retired PSERS members and over 750 public school employers. Among these services are regularly scheduled informational presentations on various topics relating to retirement benefits and programs.

Deputy Executive Director of Administration Beverly Hudson Prior to joining PSERS, Ms. Hudson previously served in various leadership capacities, including the Deputy Secretary for Administration, at the Department of General Services. In this role she provided strategic direction for DGS’ enterprise real estate portfolio management; enterprise print and mail operations; enterprise media and marketing services; the Commonwealth’s self-insurance and outsourced insurance programs; agency and capital budget processes; and served as the liaison for the consolidated Human Resources and Information Technology operations.

Beverly is proud to have begun her career in public service as a public school teacher in Pennsylvania.​ The Office of Administration provides comprehensive leadership to assist the Executive Director in accomplishing the agency’s mission by maintaining oversight of PSERS administrative and information technology and security-related services for the agency.

This includes managerial responsibility for the following areas: information technology; information security; human resources; physical security; facilities; contracting and procurement; business continuity; safety; records management; and mail, imaging, and printing services. Cotton, Ed.D., CFA is Chief Investment Officer of the Pennsylvania Public School Employees’ Retirement System (PSERS), one of the nation’s oldest and largest public pension funds, where he oversees a global investment portfolio spanning public equity, fixed income, private markets, credit, and real assets.

He serves on the Investor Board of AIF Global, an independent economic think tank focused on institutional investment policy. When called upon by the PSERS Board of Trustees in 2025, Dr. Cotton briefly served as Interim Executive Director during a leadership transition — a role he was honored to fill while the Board conducted its search.

Cotton served as Senior Managing Director at the UAW Retiree Medical Benefits Trust, where as a founding member of the investment team, he helped grow the fund from $40 billion to more than $60 billion in assets. Earlier, he held pension, treasury, and internal control roles at Ford Motor Company, including international assignments in London and Hiroshima.

Source fold: https://www.pa.gov/agencies/psers/about/organization-and-staff. Verify against the live page or PDF before citing beyond this page.

Annex: Executive Director page fold

Official About PSERS’ Executive Director page for Uri Monson (December 2025 appointment).

About PSERS' Executive Director Uri Monson Uri Monson was appointed Executive Director of the Public School Employees’ Retirement System (PSERS) in December 2025. In this role, he provides leadership and strategic direction for the system and oversees the agency operations, investment program, and service to more than 500,000 members.

Before joining PSERS, Monson served as Pennsylvania’s Secretary of the Budget, where he led the Commonwealth’s finances with a focus on long-term fiscal responsibility and strategic growth. Under Monson’s leadership, Pennsylvania released its first debt management policy, providing clear guidance on debt authorizations and repayment, and completed bond refinancing that will save taxpayers $193 million by 2035.

During his tenure, the Commonwealth received its highest credit ratings in more than a decade, with Moody’s, Fitch, and S&P all affirming Pennsylvania’s positive outlook. His previous experience spans nearly 30 years in senior roles across federal, state, and local government, including Deputy Superintendent of Operations and Chief Financial Officer (CFO) for the School District of Philadelphia, during which time the District improved its fiscal outlook to allow for a return to local control and achieved an investment level credit rating for the first time since 1977.

Prior to joining the School District, Monson served as the CFO of Montgomery County, Executive Director of the Pennsylvania Intergovernmental Cooperation Authority, and Assistant Budget Director for the City of Philadelphia. Monson also held multiple roles with the U.S. Department of Education and worked in the Office of the Vice President of the United States with the Reinventing Government initiative.

Monson earned a master’s degree in Public Policy from the Columbia University School of International and Public Affairs and a bachelor’s degree in Political Science from Columbia University, as well as a bachelor’s degree in Midrash from the Jewish Theological Seminary of America. Monson is an active member of his synagogue, served as Vice President and Treasurer of Camp Ramah in the Poconos, and is a former President of the Philadelphia Committee on City Policy.

He was named as a person to watch in Philadelphia Magazine’s 2009 “Best of Philly” Issue and cited as the top “Wonk” in the City. Monson currently resides in Wynnewood, PA with his wife and three children.

Source fold: https://www.pa.gov/agencies/psers/about/executive-director. Verify against the live page or PDF before citing beyond this page.

Annex: Monson appointment news fold

4 December 2025 newsroom: Board names Uri Monson Executive Director; Cotton as then-interim; staff of 350.

PSERS’ Board of Trustees Names Uri Monson Executive Director HARRISBURG, PA – The Pennsylvania Public School Employees’ Retirement System (PSERS) announced today that Uri Monson has been named as its next executive director. PSERS’ Board of Trustees is expected to finalize the move at its Dec. The board selected Monson after a nationwide search that spanned several months.

He will lead a staff of 350 employees and will report directly to the board. Monson succeeds Terrill Sanchez, who led PSERS with distinction until her retirement in June. Chief Investment Officer Ben Cotton has very capably served as interim executive director since that date. “We chose Uri Monson as our next executive director because of his extensive public sector financial experience, which is well-suited to guide PSERS in the years ahead,” said Board Chair Richard Vague.

Vice Chair Sue Lemmo added, “In Uri, we see a leader who understands both the financial demands of a pension system and the responsibility we have to those who count on us for retirement security.” Monson currently serves as secretary of the Pennsylvania Office of the Budget, a position he was appointed to by Gov.

Before joining the Shapiro administration, Monson spent nearly 30 years in senior roles across federal, state and local government. He previously served as deputy superintendent of operations and chief financial officer for the School District of Philadelphia, where he helped the district improve its fiscal outlook, allowing a return to local city control and achieving an investment level credit rating for the first time since 1977.

Additionally, Monson served as chief financial officer of Montgomery County, executive director of the Pennsylvania Intergovernmental Cooperation Authority and assistant budget director for the city of Philadelphia. While in Washington, D.C., he worked as a congressional liaison for the U.S. Department of Education, and as a policy analyst and program manager for the Office of Postsecondary Education.

Monson began his public service career through the Presidential Management Internship (PMI) Program, serving as a program analyst at the U.S. Department of Education and completing assignments in the Office of the Vice President of the United States and the New York City Office of the Superintendent for Alternative High School Programs.

“I am honored by the board’s trust and committed to leading PSERS with a clear focus on the long-term interests of its members,” Monson said. “I have spent my career managing public finances with care and accountability, and I look forward to working with the board, staff and stakeholders to ensure the system continues to deliver on its promise of retirement security for Pennsylvania’s public school employees.” Monson earned a master’s degree in public policy from the Columbia University School of International and Public Affairs and a bachelor's degree in political science from Columbia University, as well as a bachelor's degree in midrash from the Jewish Theological Seminary of America.

About the Pennsylvania Public School Employees' Retirement System PSERS, founded in 1917, began operations in 1919 to oversee a statewide defined benefit pension plan for public school employees. PSERS' role expanded upon the passage of Act 5 of 2017 to include oversight of two new benefit options consisting of defined benefit and defined contribution (DC) components and a stand-alone DC plan.

31, 2024, PSERS had a total net position of about $79.5 billion and a membership of about 256,000 active, 254,000 annuitants and beneficiaries, and 27,000 vested inactive members. About the Board of Trustees The 15-member Board of Trustees is an independent administrative board of the Commonwealth. The Board stands in a fiduciary relationship to PSERS’ members regarding investments and disbursements of the system’s funds.

The Board’s other functions outlined in the Public School Employees’ Retirement Code include certifying contribution rates, authorizing the system’s actuarial valuation and independent audit, publishing an annual financial statement, and overseeing the operational activities performed by the system’s executive director and chief investment officer.

Source fold: https://www.pa.gov/agencies/psers/newsroom/12042025. Verify against the live page or PDF before citing beyond this page.

Annex: Cotton CIO appointment news fold

Official news naming Benjamin (Ben) Cotton CIO effective 17 January 2023; then-AUM $71.2 billion at 30 June 2022 (historical, not a current headline).

PA PSERS Board of Trustees Names Benjamin L. Cotton Chief Investment Officer HARRISBURG, PA – The Pennsylvania Public School Employees' Retirement System (PSERS) Board of Trustees today voted to name Benjamin (Ben) Cotton as the Chief Investment Officer of the System. Cotton, a U.S Marine veteran, brings over 25 years of corporate leadership, investment, and internal control experience that is well suited for PSERS's commitment to excellent service and continuous improvement.

He will oversee 65 internal investment professionals and staff and multiple contracted external consultants and managers who invest the System's $71.2 billion in assets as of June 30, 2022. Cotton most recently completed a doctoral program on Leadership and Learning in Organizations through Vanderbilt University's Peabody College this December 2022.

Before initiating his doctoral studies, Mr. Cotton served as a Senior Managing Director for the United Auto Workers Retiree Medical Benefits Trust, established to invest assets and administer healthcare benefits for over 800,000 automotive industry workers and their eligible dependents. As a founding member of the Trust's investment team, Mr.

Cotton helped expand its investment processes and grow its assets from $40 billion at inception to over $60 billion while providing over $2 billion net annual healthcare benefit payouts. In addition, he managed the team responsible for investing in public equity, fixed income, credit, cash, and derivatives mandates while leading certain private asset and hedge fund underwritings.

Cotton worked with Ford Motor Company, where he helped manage over $55 billion in pension, insurance, and cash-related investments. He also served internationally in London, leading the audit teams for Ford Credit in Europe and Asia Pacific, and in Hiroshima he facilitated improvements to financial reporting controls for Mazda Motor Corporation in Japan, North America, Europe, and Australia.

After returning to the United States, he also managed Ford's foreign exchange, commodities, and derivatives trading team and managed the team responsible for overseeing Ford's securitization-related reporting processes. Cotton worked as a research manager and investment analyst in the investment industry.

PSERS Board Chairman Chris Santa Maria commented on Mr. "I am extremely happy and proud that Ben accepted the Board's employment offer to join PSERS talented team," said Board Chairman Chris Santa Maria. "We spent months on a nationwide search for our next CIO. Ben's military experience, combined with his corporate and international investment and finance expertise, stood out during our search and interview process.

On behalf of the Board, we welcome him and look forward to working with him as he manages PSERS' global investment portfolio and dedicated team of internal investment professionals and external managers." The Board also thanked Bob Devine, who served as Interim Chief Investment Officer during the search for a new Chief Investment Officer.

Cotton commented on his hiring as Chief Investment Officer, "It's an honor to join one of the nation's oldest and largest public pension funds," Mr. "I was drawn to this job by the Board of Trustees' dedication to continuous improvement to keep the system healthy and viable for over 500,000 public school employees and retirees.

I'm humbled by the Board's faith in my ability to help them in that endeavor by leading their team of dedicated and hardworking investment professionals." Hudepohl & Associates, Inc. assisted the Board with the search for a new Chief Investment Officer. Cotton was chosen from a qualified pool of candidates during a nationwide search that was conducted from May 2022 to present.

He will start as PSERS Chief Investment Officer on January 17, 2023. Cotton will be paid a salary of $515,000 annually. To attract this highly skilled investment professional, obtained through a nationwide search, he will also receive compensation in the form of a one-time $10,000 quality assurance payment.

He is a United States Marine Corps veteran, who served from 1988 through 1992, including service in Saudi Arabia and Kuwait during Desert Shield and Desert Storm. After his honorable discharge, he graduated Summa Cum Laude with a bachelor's degree in Business Administration and Finance from Midwestern State University in Texas.

Source fold: pa.gov Cotton CIO appointment news. Verify against the live page or PDF before citing beyond this page.

Annex: 8 Jul 2026 performance news fold

Official news on the quarter ended 31 March 2026: ~$85.7B assets; 10.26% trailing year; Chair Vague / Vice Chair Lemmo quotes.

PSERS Reports Continued Strong Long-Term Investment Performance HARRISBURG, PA – The Pennsylvania Public School Employees’ Retirement System’s (PSERS) long-term investment performance continues to strengthen the financial position of the pension fund, the latest Investment Performance Report indicated.

The report for the quarter ending March 31, 2026, showed strong long-term annualized returns at 8.49% over a three-year period, 7.42% over five years and 8.41% over 10 years. “Our long-term investment performance remains strong, with annualized returns over the three-, five- and 10-year periods remaining above the system’s 7% actuarial objective,” said PSERS Board of Trustees Chair Richard Vague.

Over the past 12 months, the fund returned 10.26%. Additionally, the report showed total fund assets increased to approximately $85.7 billion. “While market performance can vary from quarter to quarter, our disciplined and diversified investment strategy has helped generate strong long-term returns by balancing investment risk to support the retirement security of our members,” said PSERS Board of Trustees Vice Chair Susan Lemmo.

The investment performance report is one measure of the system’s financial position. Earlier this year, the system’s actuarial valuation report highlighted continued progress in the system’s financial position . The report showed the funded ratio increased to 66.6% and projects continued improvement over the next decade.

About the Board of Trustees The 15-member Board of Trustees is an independent administrative board of the Commonwealth of Pennsylvania. The board stands in a fiduciary relationship to PSERS’ members regarding investments and disbursements of the system’s funds. The board’s other functions outlined in the Public School Employees’ Retirement Code include certifying contribution rates, authorizing the system’s actuarial valuation and independent audit, publishing an annual financial statement, and overseeing the operational activities performed by the system’s executive director and chief investment officer.

About the Pennsylvania Public School Employees' Retirement System PSERS, founded in 1917, began operations in 1919 to oversee a statewide defined benefit pension plan for public school employees. PSERS' role expanded upon the passage of Act 5 of 2017 to include oversight of two new benefit options consisting of defined benefit and defined contribution (DC) components and a stand-alone DC plan.

As of June 30, 2025, PSERS had a total net position of about $83.7 billion and a membership of about 262,000 active, 255,000 annuitants and beneficiaries, and 26,000 vested inactive members.

Source fold: https://www.pa.gov/agencies/psers/newsroom/07082026. Verify against the live page or PDF before citing beyond this page.

Annex: Board of Trustees fold

Board Information page: 15-member independent administrative board; fiduciary relationship; exclusive control of the Fund.

Board of Trustees Board Information The Board, consisting of fifteen members, is an independent administrative board of the Commonwealth. The members of the Board stand in a fiduciary relationship to the members of the Pennsylvania Public School Employees' Retirement System regarding the investments and disbursements of moneys of the Fund.

The members of the Board, as trustees of the Fund, have exclusive control and management of the Fund and full power to invest the Fund. The Board also performs other functions as are required for the administration and execution of the Public School Employees' Retirement Code such as certifying contribution rates, authorizing the actuarial valuation and independent audit of the System, and publishing an annual financial statement of the condition of the Retirement Fund.

In addition, the Board reviews the activities performed by the System's Executive Director and Chief Investment Officer.​ Committees These are the PSERS Board Committees as defined in the Statement of Organization, Bylaws, and Other Procedure of the Commonwealth of Pennsylvania Public School Employees Retirement Board, as adopted by the Board of Trustees on January 25, 1991, effective January 25, 1991, and amended April 16, 1999, October 29, 1999 and September 24, 2004.

On March 15, 2022, the Board reorganized its committee structure and updated its Current Bylaws by adopting a new Model Governance Manual Framework.​​ List of committee members and meeting dates ​ Policies The policies listed below have been promulgated and adopted by the Public School Employees Retirement Board for the administration of the Board and the System.

Source fold: https://www.pa.gov/agencies/psers/board-of-trustees. Verify against the live page or PDF before citing beyond this page.

Annex: 2026 member newsletter fold

Active and retired member newsletters, volume 1 2026: Monson start date 13 December; Cotton as interim since Sanchez retirement.

PSERS Active Member Newsletter Volume 1 - 2026 A publication of the Commonwealth of Pennsylvania's Public School Employees' Retirement System Inside this Issue: Uri Monson Selected as h Active Certified PSERS' New Executive Director Board Member E l e c t i o n Re s u l t The PSERS Board of Trustees approved Uri Monson’s appointment as the h Re v i e w Yo u r system’s next Executive Director at its December meeting following a Beneficiaries for nationwide search that spanned several months.

Monson, who officially t h e N e w Ye a r began his role on December 13, brings nearly 30 years of experience in public finance, operations, and leadership. His background will help guide h State of the Fund PSERS as the system continues its work to support retirement security for & More... Monson succeeds Terrill Sanchez, who retired in June.

Since that time, Chief Investment Officer Ben Cotton has served as Interim Executive Director. Prior to joining PSERS, Monson served as Pennsylvania’s Secretary of the Budget, appointed by Governor Josh Shapiro in January 2023. His previous experience spans nearly 30 years in senior roles across federal, state, and local government, including Deputy Superintendent of Operations and Chief Financial Officer of the School District of Philadelphia; Chief Financial Officer for Montgomery County; Executive Director of the Pennsylvania Intergovernmental Cooperation Authority; and Assistant Budget Director The Public School Employees’ Retirement System (PSERS) provides for the City of Philadelphia.

Monson also held multiple roles with the U.S. this document for educational and Department of Education and worked in the Office of the Vice President of the informational purposes. Information in United States with the Reinventing Government initiative. this document is general in nature, does not cover all factual circumstances, and is not a complete statement of the law Monson holds a master’s degree in public policy from Columbia University’s or administrative rules.

The statements School of International and Public Affairs. He also holds two bachelor's in this document are not binding. In degrees, one in political science from Columbia University and one in midrash any conflict between the statements in this document and applicable from the Jewish Theological Seminary of America.

law or administrative rules, the law and administrative rules will prevail. Monson is an active member of his synagogue, served as Vice President and This document is designed solely Treasurer of Camp Ramah in the Poconos, and is a former President of the to provide an overview of benefits available to PSERS members and is Philadelphia Committee on City Policy.

He was named as a person to watch not intended to be a substitute for in Philadelphia Magazine's 2009 "Best of Philly" Issue and cited as the top retirement counseling. Monson currently resides in Wynnewood, PA with his wife this newsletter may not be used for any commercial purpose without PSERS’ and three children.

PSERS is excited to welcome Executive Director Monson and looks forward to Publication #9301 the experience and perspective he brings to support the retirement security of its more than 500,000 members. Active Certified Board Election Result PSERS Board of Trustees Meetings Adam Serfass, an agricultural education teacher at Conrad Weiser High School, ran unopposed in the active certified special election and Visit the PSERS website for was elected by acclamation.

Brown, an instructional support teacher in the Oxford Area School District. Board and Committee meeting schedules, agendas, and the Brown announced her retirement from the board in June 2025. term was from January 1, 2024, to December 31, 2026. Serfass will serve the remainder of Brown’s term through December 31, PSERS Board meetings are held 2026, and will serve a three-year term for the seat effective January 1, in Harrisburg at PSERS, located 2027, through December 31, 2029.

“We are pleased to welcome Adam to the board and appreciate his willingness to serve,” said PSERS Board Chair Richard Vague. In addition to Board meetings, Vice Chair Susan C. Lemmo added, “We look forward to working Committee meetings are together in support of PSERS’ mission.” held throughout the year.

All PSERS Board meetings are live streamed and open to the public. Review Your Beneficiaries for the New Year Happy New Year! Make it a resolution this year to review your PSERS For exact meeting times or if beneficiaries. Your PSERS retirement plans could be some of your largest you would like to attend and financial assets.

Keeping your beneficiary information up to date is require an accommodation to crucial to ensure that your death benefit is distributed according to your participate, please contact Tivia wishes. Take the time to review and revise your beneficiary designation to reflect your current situation and to avoid any misunderstandings or Danner, PSERS Executive Office unintended consequences.

Even if you have a will, without a beneficiary at . nomination on file for your PSERS benefits, any death benefit may go to your estate and result in estate taxes. Stay proactive and protect your loved ones! Nominating beneficiaries and updating beneficiary information for both PSERS Defined Benefit (DB) and Defined Contribution (DC) Plans is quick and easy through the PSERS Member Self-Service (MSS) Portal.

If you cannot access the MSS Portal, you can complete a Nomination of Beneficiary (PSRS-187) form. Please remember, the most current form on file supersedes all previously filed nominations. You can view your current beneficiaries through the MSS Portal. Your beneficiaries are also listed in your annual Statement of Account, unless you have chosen not to have them displayed.

Source fold: 2026 active + retired member newsletters PDFs. Verify against the live page or PDF before citing beyond this page.

Annex: Unaudited Mar 2026 quarterly FNP fold

Unaudited Statement of Fiduciary Net Position as of 31 March 2026 (totals ~US$87.852B). Distinct from Total Fund Composite US$85.703B.

PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM Statement of Fiduciary Net Position As of March 31, 2026 Unaudited (Dollar Amounts in Thousands) Postemployment Healthcare Defined Premium Health Options Pension Contribution Assistance Program Totals Assets: Receivables: Members 382,864 907 1,231 108 385,110 Employers 1,458,955 700 28,274 — 1,487,929 Investment income 462,329 29 325 836 463,519 Investment proceeds 504,607 — — — 504,607 CMS Part D and prescriptions — — — 136,712 136,712 Interfund Receivable 2,328 — — — 2,328 Total Receivables 2,811,083 1,636 29,830 137,656 2,980,205 Investments, at fair value: Short-term 7,989,612 21,122 102,334 402,023 8,515,091 Fixed income 19,460,763 — — — 19,460,763 Equity 31,228,271 — — — 31,228,271 Collective trust funds 1,224,256 709,275 — — 1,933,531 Real estate 9,789,681 — — — 9,789,681 Alternative investments 15,191,389 — — — 15,191,389 Total Investments 84,883,972 730,397 102,334 402,023 86,118,726 Securities lending collateral pool 1,895,155 — — — 1,895,155 Capital assets (net of accumulated depreciation $95,559) 46,012 — — — 46,012 Miscellaneous 30,873 1 — — 30,874 Total Assets 89,667,095 732,034 132,164 539,679 91,070,972 Liabilities: Accounts payable and accrued expenses 124,015 131 310 6,721 131,177 Benefits payable 272,636 — 406 48,716 321,758 HOP participant premium advances — — — 38,197 38,197 Investment purchases and other payables 637,651 1,050 — — 638,701 Obligations under securities lending 1,895,155 — — — 1,895,155 Interfund payable — 850 951 527 2,328 Other liabilities 191,738 — — — 191,738 Total Liabilities 3,121,195 2,031 1,667 94,161 3,219,054 Net position restricted for pension, DC and postemployment healthcare benefits 86,545,900 730,003 130,497 445,518 87,851,918 87,851,918 — PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM Statement of Changes in Fiduciary Net Position For the Nine Months Ended March 31, 2026 Unaudited (Dollar Amounts in Thousands) Postemployment Healthcare Defined Premium Health Options Pension Contribution Assistance Program Totals Additions: Contributions: Members 916,403 80,521 — — 996,924 Employers 4,145,178 61,950 78,675 — 4,285,803 Total contributions 5,061,581 142,471 78,675 — 5,282,727 HOP participant premiums — — — 330,959 330,959 Centers for Medicare & Medicaid Services premiums — — — 167,687 167,687 Investment income: From investing activities: Net appreciation (depreciation) in fair value of investments 3,214,989 49,863 — — 3,264,852 Short-term 168,670 80 3,183 10,239 182,172 Fixed income 477,527 — — — 477,527 Equity 407,416 — — — 407,416 Collective trust funds — 458 — — 458 Real estate 160,471 — — — 160,471 Alternative investments 338,168 — — — 338,168 Total investment activity income (loss) 4,767,241 50,401 3,183 10,239 4,831,064 Investment expenses (258,988) (924) — — (259,912) Net income(loss) from investing activities 4,508,253 49,477 3,183 10,239 4,571,152 From securities lending activities: Securities lending income 15,719 — — — 15,719 Securities lending expense (15,342) — — — (15,342) Net income from securities lending activities 377 — — — 377 Total net investment income (loss) 4,508,630 49,477 3,183 10,239 4,571,529 Total Additions 9,570,211 191,948 81,858 508,885 10,352,902 Deductions: Benefits 5,573,208 — 83,788 439,976 6,096,972 Refunds of contributions 35,242 — — — 35,242 Distributions — 15,964 — — 15,964 Administrative expenses 47,071 3,459 950 30,189 81,669 Total Deductions 5,655,521 19,423 84,738 470,165 6,229,847 Net increase (decrease) 3,914,690 172,525 (2,880) 38,720 4,123,055 Net position restricted for pension, DC and postemployment healthcare benefits: Balance, beginning of year 82,631,210 557,478 133,377 406,798 83,728,862 Balance, end of period 86,545,900 730,003 130,497 445,518 87,851,918 87,851,918 —

Source fold: quarterly statement March 2026 PDF. Verify against the live page or PDF before citing beyond this page.

Annex: FY2026-27 budget hearing fold

Budget Hearing Report FY2026-27 (membership, Act 5, premium assistance, HOP, net-position language).

PA Public School Employees’ Retirement System BUDGET REPORT APPROPRIATIONS COMMITTEE Fiscal Year 2026-27 A Component Unit of the Commonwealth of Pennsylvania February 24, 2026 Honorable Jordan A. Harris Honorable Scott Martin Democratic Chairman Republican Chairman House Appropriations Committee Senate Appropriations Committee 512 E.

Main Capitol 281 Main Capitol Harrisburg, PA 17120-2186 Harrisburg, PA 17120-3013 Honorable James B. Hughes Republican Chairman Democratic Chairman House Appropriations Committee Senate Appropriations Committee 245 Main Capitol 545 Main Capitol Harrisburg, PA 17120-2062 Harrisburg, PA 17120-3007 Chairmen and Members of the Appropriations Committees: On behalf of the Board of Trustees, I am pleased to present the Fiscal Year (FY) 2026-27 Budget Report for the Public School Employees’ Retirement System (PSERS).

This report provides detailed analyses of the system’s actuarial, financial, and investment operations. Copies of this report, the FY 2024-25 Annual Comprehensive Financial Report (ACFR), actuarial valuation reports, and other key documents are available on our website at pa.gov/PSERS. As we approach the next fiscal year, I express my gratitude to Governor Josh Shapiro and the General Assembly for their continued budgetary commitment, which helps PSERS fulfill the promise of a secure retirement.

Sanchez, who retired as PSERS’ executive director in June with nearly 40 years of public service to the Commonwealth. In December, Uri Monson became the executive director after most recently serving as Pennsylvania’s Secretary of the Budget. He brings nearly 30 years of experience in senior roles across federal, state, and local government.

PSERS looks forward to the perspective he brings to support the retirement security of its more than 500,000 members. For the benefit of those members, PSERS offers a variety of services to assist active and retired members. In FY 2024-25, PSERS handled 165,286 calls, responded to 58,611 emails and secure messages, and served 2,942 member walk-ins.

Fiscal year 2025-26 marked the successful completion of an independent audit using SOC 1 Type 2 standards, resulting in an unqualified opinion – the top level of assurance – confirming that the system’s controls were sound and effective. The audit reflects PSERS’ ongoing commitment to accountability, transparency, and sound financial management.

The same year marked a significant milestone in our bipartisan partnership. It was the 10th consecutive fiscal year that the PSERS Board certified the full employer contribution rate (ECR), as calculated by our actuary, and the General Assembly appropriated corresponding dollars. Full employer contributions, as allocated by the General Assembly and approved by the Governor, have strengthened PSERS’ financial position and led to marked improvements: PSERS’ funded ratio is approaching 67%, its highest level since 2011; the system earned $7.3 billion in net investment income, yielding a 9.67% net return; the system’s total net position grew 8% to $83.7 billion; and the unfunded actuarial liability declined by $1 billion to $41 billion.

We are pleased that the current budget proposal recommends the allocation of the full ECR to maintain this progress. PSERS’ active membership continues to rebound, growing 5.6% to 261,669 members since the early COVID years, when membership dropped to a decade low of 247,873 in FY 2021-22. For its retired members, in FY 2025-26, PSERS disbursed $7.7 billion in pension benefits to 254,735 annuitants and beneficiaries, with the average annuitant benefit increasing to $26,522 annually.

Nearly 90% of retirees remain in Pennsylvania, keeping benefit dollars in the state and supporting jobs, wages, and local economies. For FY 2026-27, PSERS is requesting a $65.5 million spending authority for the Defined Benefit (DB) Administrative Budget and a $1.5 million spending authority for the Defined Contribution (DC) Administrative Budget, both of which are funded entirely from system assets, not the Commonwealth’s General Fund.

Through prudent asset management in the last fiscal year, the DB Plan exceeded the 7.00% actuarial return target and reached a fair market value of $82.6 billion. Further, the DC Plan, established under Act 5 of 2017, now serves 95,000 participants and holds $557.5 million in assets. PSERS continues to expand financial education and investment guidance resources to support the growing number of participants in this plan.

PSERS’ voluntary Health Options Program, funded solely by participant premiums, also remains a valuable resource. It serves nearly 124,000 retirees and dependents, including nearly 100,000 enrolled in its prescription drug plan, which has received national recognition for high-quality service. The Premium Assistance Program, funded through a portion of the ECR, provides a monthly subsidy of up to $100 for 91,000 qualifying retirees.

All of these achievements would not be possible without your ongoing partnership and engagement. On behalf of the Board of Trustees, thank you for your dedication to Pennsylvania. Sincerely, Richard Vague Chairman Table of Contents Section 1: PSERS Organization Agency and Plan Descriptions.................................................................................................

1 Board of Trustees ...................................................................................................................... 3 Organizational Structure........................................................................................................... 4 Economic Impact on the Commonwealth ..............................................................................

8 Serving Those Who Serve Others ........................................................................................... 9 Transparency ............................................................................................................................. 10 Legislation ..................................................................................................................................

Source fold: budget hearing report FY2026-27 PDF. Verify against the live page or PDF before citing beyond this page.

Annex: 2025 stress-testing report fold

Official 2025 PSERS stress-testing report (final marked 31 March 2026).

Pennsylvania Public School Employees’ Retirement System Stress Testing Analysis Report Prepared as of June 30, 2025 March 2026 1205 Westlakes Drive Suite 290 Berwyn, PA 19312 March 2026 Board of Trustees Pennsylvania Public School Employees’ Retirement System 5 North 5th Street Harrisburg, PA 17101 Ladies and Gentlemen: This report presents the stress testing results for the Pennsylvania Public School Employees’ Retirement System (Retirement System or PSERS) as of June 30, 2025.

The purpose of this report is to satisfy the annual stress testing requirements of Pennsylvania Title 24, § 8510. A full summary of Pennsylvania Title 24, § 8510 can be found in Appendix A. This report is intended to assist the PSERS Board of Trustees, the Governor of Pennsylvania, the General Assembly, Independent Fiscal Office, and other stakeholders to better understand and assess the risks inherent in the funding of the Retirement System.

Use of this report for any other purpose than as stated, or by anyone other than the Board of Trustees or the staff of PSERS or employers or its auditors, may not be appropriate and may result in mistaken conclusions because of failure to understand applicable assumptions, methods, or inapplicability of the report for that purpose.

Gallagher should be asked to review any statement to be made on the basis of the results contained in this report. Gallagher will accept no liability for any such statement made without prior review by Gallagher. Except as noted herein, where presented, references to “funded ratio” and “unfunded accrued liability” typically are measured on an actuarial value of assets basis.

It should be noted that the same measurements using market value of assets would result in different funded ratios and unfunded accrued liabilities. Moreover, the funded ratio presented may be appropriate for evaluating the need and level of future contributions but makes no assessment regarding the funded status of the plan if the plan were to settle (i.e., purchase annuities) for a portion or all of its liabilities.

56 (ASOP 56) provides guidance to actuaries when performing actuarial services with respect to designing, developing, selecting, modifying, using, reviewing, or evaluating models. Gallagher uses the following: • Gallagher’s 2026 Capital Market Assumptions were used to assess the reasonability of the valuation interest rate used for the valuation and baseline scenarios herein.

Gallagher’s capital market assumptions are set using proprietary building block methods for various asset classes. Further details are available in Gallagher’s Capital Market Assumptions White Paper. • the GEMS® Economic Scenario Generator from Conning & Company was used to develop the simulations used in the stochastic analysis.

GEMS® uses a multifactor model to create internally consistent, realistic economic scenarios (paths) that reflect the current economic environment as a starting point. Asset class correlations may vary from year to year (just as in the real world), as well as from path to path. The model generates results that are not normally distributed, with fatter tails, and should therefore estimate the probabilities of rare events more realistically than a pure mean-variance model.

• third-party software in the performance of annual actuarial valuations and projections to calculate the liabilities associated with the provisions of the Retirement System using data and assumptions as of the measurement date under the funding methods specified in this report as well as specified in each scenario and risk assessment.

• an internally developed model that applies applicable funding methods and policies to the liabilities derived from the output of the third-party software and other inputs, such as Retirement System assets and contributions, to generate many of the exhibits found in this report. Board of Trustees Pennsylvania Public School Employees’ Retirement System March 2026 Page 3 Gallagher has an extensive review process whereby the results of the liability calculations are checked using detailed sample output, changes from year to year are summarized by source, and significant deviations from expectations are investigated.

Other outputs and the internal model are similarly reviewed in detail and at a high level for accuracy, reasonability, and consistency with prior results. Gallagher also reviews the third-party model when significant changes are made to the software or model. The review is performed by experts within the company who are familiar with applicable funding methods as well as the manner in which the model generates its output.

If significant changes are made to the internal model, extra checking and review are completed. Significant changes to the internal model that are applicable to multiple clients are generally developed, checked, and reviewed by multiple experts within the company who are familiar with the details of the required changes.

Source fold: 2025 PSERS stress testing report PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Glass Lewis thematic voting policy fold

Opened Glass Lewis Corporate Governance Focused Thematic Voting Policy posted with PSERS investment policies (2024 adoption path).

Corporate Governance Focused Thematic Voting Policy Guidelines 2024 www.glasslewis.com About Glass Lewis .................................................................................................... 4 Summary of Changes for 2024 ...............................................................................

5 Overview ................................................................................................................... 5 Insider ................................................................................................................................................................................

5 Affiliate............................................................................................................................................................................... 5 Independent .....................................................................................................................................................................

5 Board Independence......................................................................................................................................... 6 Board Committee Composition ......................................................................................................................

6 Director Overboarding...................................................................................................................................... 7 Classified Boards ................................................................................................................................................

7 Financial Reporting .................................................................................................. 7 Appointment of Auditors and Authority to Set Fees ................................................................................... 7 Compensation ..........................................................................................................

7 Compensation Reports and Compensation Policies ................................................................................... 7 Long-Term Incentive Plans ............................................................................................................................... 8 Performance-Based Equity Compensation ...................................................................................................

8 Governance Structure .............................................................................................. 9 Amendments to the Articles of Association .................................................................................................. 9 Anti-Takeover Devices .......................................................................................................................................

9 Dual-Class Share Structure ............................................................................................................................................ 9 Cumulative Voting ...........................................................................................................................................................

9 Fair Price Provision ........................................................................................................................................................ 10 Supermajority Vote Requirements .............................................................................................................................

10 Poison Pills (Shareholder Rights Plan) ....................................................................................................................... 10 Corporate Governance Focused Thematic Voting Policy Guidelines 2 Increase in Authorized Shares .......................................................................................................................10 Issuance of Shares ............................................................................................................................................11 Repurchase of Shares ......................................................................................................................................11 Reincorporation ................................................................................................................................................11 Advance Notice Requirements ......................................................................................................................11 Anti-Greenmail Proposals ...............................................................................................................................12 Virtual-Only Shareholder Meetings ..............................................................................................................12 Merger, Acquisitions and Contested Meetings ...................................................

12 Shareholder Proposals........................................................................................... 13 Governance Proposals ....................................................................................................................................13 Compensation Proposals ................................................................................................................................13 General Approach to Environmental and Social Shareholder Proposals .............................................14 Connect with Glass Lewis ......................................................................................

Source fold: 2024 Glass Lewis Corporate Governance Focused Thematic Voting Policy PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Private markets policy fold

Private Markets Asset Class Board Policy (adopted final) — illiquid sleeves and pacing context for IPS belief 8.

COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Private Markets Asset Class Policy COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM TABLE OF CONTENTS I. Co-Investment, Secondary Investments, and Direct Real Estate Investments VII. Geographic and Sector Concentration Risk E.

STRATEGY SEGMENTATION Revision History Private Markets Asset Class Policy March 22, 2024 This Policy represents the combination of the following five policies which were last approved by the Board on March 15, 2022: - Private Equity - Private Real Estate - Private Credit - Private Infrastructure - Private Commodities Private Markets Asset Class Policy March 2024 Page 2 of 11 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM I.

SCOPE This Private Markets Asset Class Policy (the “Policy”) applies to investments within the Private Equity, Private Real Estate, Private Credit, Private Infrastructure, and Private Commodities portfolios (the “Portfolios”) within the Pennsylvania Public School Employees’ Retirement System (“PSERS”) Defined Benefit Fund (the “Fund”).

PURPOSE The Policy provides a broad strategic investment framework and certain limitations for managing investments within the Portfolios. ROLES AND RESPONSIBILITIES Roles and Responsibilities related to this Policy are identified within PSERS’ Investment Policy Statement (“IPS”). INVESTMENT PHILOSOPHY PSERS seeks to diversify Fund assets by providing exposure to private investments as part of the overall investable universe.

Additionally, when compared to other investable opportunities, private markets investments are intended to provide exposure to higher potential returns, more direct oversight and control by the general partner, and better alignment of interests among limited partners, general partners and the operational organizations for each investment.

These Portfolios target risk-adjusted returns in excess of their benchmarks, net of fees, over a full market cycle. The benchmark for each Portfolio is identified within the IPS, except for Private Commodities which, to-date, is a relatively small / opportunistic allocation within PSERS’ Private Real Assets allocation.

To maintain diversification across the Portfolios, PSERS pursues a global investment philosophy that incorporates various underlying investment strategies and collateral types across its External Managers pursuant to the strategic asset allocation set forth in the IPS. Investments in each Portfolio shall generally be diversified across fund size, sector, strategy, geography, and vintage year.

ASSET ALLOCATION Asset allocation is a critical driver for the long-term success of PSERS. Given the long-term nature of these Portfolios, manager selection and commitment pacing, in relation to allocation targets, have heightened importance as tools to manage these allocations. Private Markets Asset Class Policy March 2024 Page 3 of 11 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Long-term asset allocation targets have been developed with the assistance of PSERS’ investment consultants and are detailed in the IPS, except for Private Commodities which, to-date, is relatively small / opportunistic allocation within PSERS’ Private Real Assets allocation.

These Portfolios can be segmented by underlying asset class and then further segmented by strategy (see Section X). Investment Types PSERS will only consider private markets investment structures that provide limited liability to PSERS, limiting PSERS’ potential losses to the amount committed plus reasonable, normal investment expenses.

Co-Investments, Secondary Investments, and Direct Real Estate Investments Co-Investments: Co-Investments are only permitted to be entered into alongside existing External Managers (within the applicable Portfolio and strategy) in the Fund, except for Co-Investment opportunities located in Pennsylvania (PA Co-Investment Program).

Source fold: private markets asset class board policy PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Public markets policy fold

Public Markets Assets Class Board Policy (adopted final).

COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Public Markets Asset Class Policy COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM TABLE OF CONTENTS I. Single Security, Sector/Industry, and Country Risk D. MONITORING AND REPORTING Revision History Public Markets Asset Class March 22, 2024 Policy This Policy represents the combination of the following six policies which were last approved by the Board on the dates below: - Public Equity (March 5, 2021) - Public Fixed Income (March 5, 2021) - Public Commodities (March 5, 2021) - Public Infrastructure (March 5, 2021) - Public Real Estate (March 5, 2021) - Absolute Return (March 15, 2022) Public Markets Asset Class May 31, 2024 Policy This Policy revision integrates the Cash Policy (March 6, 2020).

Public Markets Asset Class Policy May 2024 Page 2 of 9 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM I. SCOPE The Public Markets Asset Class Policy (“Policy”) applies to investments within the Public Equity, Public Fixed Income, Public Commodities, Public Real Estate, Public Infrastructure, Absolute Return, and Cash asset classes (the “Portfolios”) within the Pennsylvania, Public School Employees’ Retirement System (“PSERS”) Defined Benefit Fund (the “Fund”).

PURPOSE This Policy provides a broad strategic investment framework for managing investments within the Portfolios. ROLES AND RESPONSIBILITIES Roles and Responsibilities related to this Policy are identified within PSERS’ Investment Policy Statement (“IPS”). INVESTMENT PHILOSOPHY PSERS seeks to diversify its assets by providing exposure to investments in public markets as part of the overall investable universe.

Additionally, when compared to other investable opportunities, investments in public markets have relatively low investment management fees and are generally more liquid, with relatively low transaction costs and market impact from entering and exiting investments. This liquidity allows for increased flexibility to (i) rebalance portfolios, (ii) address market conditions and market dislocations, and (iii) implement the strategic objectives of the Fund.

Portfolios target attractive risk-adjusted returns relative to their benchmarks, net of fees, over a full market cycle. The benchmark for each PoPrortfolio is identified within the IPS. To maintain diversification within each Portfolio and/or across the Portfolios as a whole, PSERS pursues a global investment strategy that may incorporate various strategies, styles, regions, sectors, market capitalization segments, underlying asset types, and internal and external management.

Investments in each Portfolio may be implemented through closed-end funds, partnerships, limited liability companies, open-end funds, and separate accounts, and co-investments. Each asset class in Public Markets plays a strategic role within the Fund as follows: Public Equity investments are expected to provide a return premium over inflation, thereby preserving and enhancing the real value of the Fund, and by performing well when economic growth is stronger than expected or inflation is lower than expected.

Public Markets Asset Class Policy May 2024 Page 3 of 9 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Public Fixed Income has a number of sub- asset classes. Investment grade bonds are anticipated to serve as a hedge against lower inflation and weak economic growth, produce current income in the form of periodic interest payments, and provide liquidity to meet the Fund’s obligations.

Inflation-protected bonds serve as a hedge against higher inflation and weaker economic growth and provide liquidity. Credit-related securities such as emerging market debt and high yield bonds generate higher current income relative to investment grade debt and tend to do well when economic growth is stronger than expected.

Source fold: public markets asset class board policy PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Liquidity / derivatives / currency folds

Stand-alone liquidity, derivatives-and-leverage, and currency-hedging policies adopted by the Board.

COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Liquidity Policy COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM TABLE OF CONTENTS I. MONITORING AND REPORTING Revision History Liquidity Policy Established March 6, 2020 Policy Revised March 5, 2021 Policy Revised May 24, 2023 Policy Revised May 31, 2024 Liquidity Policy May 2024 Page 2 of 6 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM I.

SCOPE This Policy addresses liquidity management within the asset allocation of the Pennsylvania, Public School Employees’ Retirement System (“PSERS”) Defined Benefit Fund (the “Fund”). PURPOSE This Policy provides a broad strategic framework for managing the Fund’s liquidity involving investment assets, investment-related liabilities and short-term obligations including benefit payments.

ROLES AND RESPONSIBILITIES Roles and Responsibilities related to this Policy are identified within PSERS’ Investment Policy Statement (“IPS”). PHILOSOPHY In general, liquidity refers to the capacity to use and, if necessary, generate cash. Since most obligations are satisfied with cash, rather than other assets.

For an asset or collection of assets, liquidity is a term used to characterize the capacity of the asset(s) to be efficiently converted into cash. “Efficiently” considers (1) the time involved in the conversion, (2) the impact to price as conversion occurs and (3) any other transactions related costs.

More liquid assets generally require less time to be converted into cash, can be converted with little or no pricing impact, and involve low transaction costs. Conversely, less liquid assets generally require more time to be converted into cash and can require greater price concessions and higher transaction costs for the conversion to cash.

Liquidity is valued by the markets and less liquid assets are expected to earn a premium. Therefore, PSERS seeks to balance the long-term usage of illiquid, or potentially illiquid assets, and leverage to generate targeted returns with the ability to raise and hold cash to pay pension and investment related obligations.

During periods of market dislocations in which asset liquidity becomes impaired, maintaining the long-term asset allocation is a secondary priority relative to the immediate cash flow needs for benefit payments. The term liquidity may also be used more broadly, referring to the capacity to satisfy short-term obligations in which both asset liquidity and liabilities are considered.

In this context, liquidity management refers to the process of balancing available assets relative to liabilities. It is a complex process that may be impacted by many variables, including conditions which affect asset liquidity as well as those conditions which affect liabilities. Investment-related liabilities include notional exceeding capital and unfunded commitments.

Liquidity Policy May 2024 Page 3 of 6 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM V. SOURCES OF LIQUIDITY RISK Liquidity risk is the potential for loss resulting from the diminished capacity, or inability of the Fund to efficiently meet its benefit and investment-related payment obligations.

Four broad areas of liquidity risk are considered below. Employer/Employee Contribution Receipts PSERS is funded by employee and employer contributions, which represent a significant source of liquidity. Employee contributions are set by law and employer contributions are actuarially determined and can be projected for several years in the future.

Should the employer contributions be decreased in the future without a corresponding adjustment to the structural characteristics of the Fund such a change could increase liquidity risk for PSERS. Benefit Payments Many factors influence the liquidity risk associated with PSERS’ benefit obligations. These include benefits offerings, contribution rates, and member demographics.

PSERS is currently considered to be a mature plan, i.e., a plan with a lower ratio of active members to retirees, in which cash outflows (benefit payments) exceed cash inflows (contributions). Should the structural characteristics of the benefits change in the future without a corresponding adjustment to contributions, such a change could increase liquidity risk for PSERS.

Assets Asset liquidity is dependent upon several factors including: • Market conditions (trading volumes, volatility, relative values of securities) at near normal levels; • How quickly an asset can be bought and sold (this includes contractual provisions, such as gates, which may limit the ability to transact); • Pricing efficiency; and • Transaction costs.

Generally speaking, and with consideration of the variables above, the level of liquidity of the investments can be characterized, under normal market conditions, along a spectrum: Illiquid Liquid Private Market Investments Absolute Return Public Market Investments and Funds Liquidity Policy May 2024 Page 4 of 6 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM D.

Source fold: liquidity + derivatives + currency hedging policy PDFs. Verify against the live page or PDF before citing beyond this page.

Annex: External-manager diligence fold

External Manager Due Diligence and Monitoring Policy (adopted final).

COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM External Manager Due Diligence and Monitoring Policy COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM TABLE OF CONTENTS I. DUE DILIGENCE (UNDERWRITING) FRAMEWORK V. DEFINITIONS Revision History Non-Traditional Investments Due Diligence Policy Established March 6, 2020 Policy Revised March 5, 2021 Policy Revised March 15, 2022 Traditional Investments Due Diligence Policy Established March 6, 2020 Policy Revised March 5, 2021 Public Markets and Private Markets Due Diligence and Monitoring Policies Combined, Renamed and Revised August 16, 2024 Policy Revised December 20, 2024 Insurance Section Added (Section V., Element 3) December 12, 2025 External Manager contracts effective on or after April 1, 2026 are subject to the insurance requirements in the External Manager’s Insurance Policy, which can be accessed at Policies | Public School Employees' Retirement System | Commonwealth of Pennsylvania External Manager Due Diligence and Monitoring Policy December 2025 Page 2 of 14 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM I.

SCOPE This Policy applies to investments with External Managers across both Public Markets Asset Classes and Private Markets Asset Classes of the Commonwealth of Pennsylvania, Public School Employees’ Retirement System (PSERS) Defined Benefit Fund (the Fund). PURPOSE This Policy provides the framework for the due diligence (underwriting) of prospective External Managers.

The goals of this framework are to: • Develop an understanding of the External Manager, its processes and investment strategy. • Generate performance expectations, identify the factors necessary to meet those expectations, and risks that may impede meeting those expectations. This Policy also provides the framework for monitoring External Managers.

The goals of this framework are to: • Determine whether the External Manager’s performance, strategy, processes, and portfolio fit are still within expectations determined when originally underwritten. • Escalate to a watchlist those Public Markets External Managers falling outside of those expectations (Note: Internal Managers shall also be subject to a watchlist).

• Report annually to the Investment Committee the utilization and status of any Private Markets use of delegated authority. • Cease new investment with and/or terminate those External Managers falling outside of those expectations and expected to remain so. • Provide the minimum insurance standards for External Managers.

ROLES AND RESPONSIBILITIES Roles and Responsibilities related to this Policy are identified within PSERS’ Investment Policy Statement (IPS). DUE DILIGENCE (UNDERWRITING) FRAMEWORK Investment Office Professionals (IOP) are responsible for adhering to a framework for underwriting External Managers. IOP should leverage the resources of the relevant Investment Consultant throughout the underwriting process when prudent.

External Manager Due Diligence and Monitoring Policy December 2025 Page 3 of 14 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM A. External Managers • Sourcing and Identification o IOP identify potential External Managers through numerous sources, including internal efforts, the relevant Investment Consultant, and peer institutions.

• Manager Analysis and Manager Interviews: Meetings, Calls and Preliminary Negotiation of Terms o Thoughtful and structured interviews allow the IOP to develop performance expectations and a portfolio fit assessment for a prospective External Manager by understanding the decision makers, their philosophies, organizational structures and motivations, and the resultant impact on performance.

o Economic and other pertinent terms are negotiated to align the interests of PSERS and the External Manager. • Performance Analysis o IOP and the relevant Investment Consultant analyze historical results to build conviction in the merits of an External Manager’s investment strategy and the execution thereof.

An External Manager’s relative performance is assessed against relevant benchmarks, including peer quartile rankings and public market equivalent returns when applicable. • Document Review Items to be reviewed may include the following (Note: Not all of these will be applicable or available in all cases): o Due Diligence Questionnaires, Placement Agent Policy, and presentation materials.

Source fold: external manager due diligence and monitoring policy PDF. Verify against the live page or PDF before citing beyond this page.

Annex: 2026 CMA / liquidity stress fold

2026 PSERS capital-market-assumption update and liquidity stress-test materials posted on the Investment Program hub.

Pennsylvania Public School Employees’ Retirement System 2026 Capital Market Assumptions and Liquidity Study June 2026 PSERS’ 2026 return and risk expectations Liquidity Public Markets 60/40 Publics with Global Asset Class Policy Allocation Grouping Only Same Privates 60/40 Global Public Equity 32 45.7 42 60 Core Fixed Income 8 11.4 28 40 US Long Treasury 8 11.4 - - High Yield Corp.

Credit 4 5.7 - - Liquid US TIPS 7 10.0 - - Assets Commodities 4 5.7 - - REITs 2 2.9 - - Public Infrastructure 5 7.1 - - Total Liquid 70 100 70 100 Private Equity 12 - 12 - Private Private Credit 7 - 7 - Market Private Real Estate 6 - 6 - Assets Private Infrastructure 5 - 5 - Total Private Markets 30 - 30 - Public Markets 60/40 Publics with Global 30-Year CMAs Policy Allocation Only Same Privates 60/40 Forecast Return 7.4 6.4 7.2 6.1 Standard Deviation 11.2 10.6 11.5 11.0 25th Percentile ret.

1 year 0.2 -0.4 -0.2 -1.0 5th Percentile ret. 1 year -9.4 -9.6 -10.0 -10.4 Sharpe Ratio 0.36 0.29 0.34 0.25 Public Markets 60/40 Publics with Global 10-Year CMAs Policy Allocation Only Same Privates 60/40 Forecast Return 7.2 6.3 6.9 5.7 Standard Deviation 11.2 10.6 11.5 11.0 25th Percentile ret. 1 year 0.0 -0.6 -0.6 -1.4 5th Percentile ret.

1 year -9.6 -9.8 -10.3 -10.8 Sharpe Ratio 0.36 0.29 0.33 0.23 › Source: Cerity Partners 2026 and 2025 30 and 10-year capital market assumptions (see Appendix) 2 PSERS’ 2025 return and risk expectations Public Markets 60/40 Publics with Global 30-Year CMAs Policy Allocation Only Same Privates 60/40 Forecast Return 7.3 6.2 7.0 5.9 Standard Deviation 11.6 10.6 11.8 10.9 25th Percentile ret.

1 year -0.2 -0.6 -0.6 -1.1 5th Percentile ret. 1 year -10.1 -9.7 -10.6 -10.5 Sharpe Ratio 0.34 0.27 0.32 0.24 Public Markets 60/40 Publics with Global 10-Year CMAs Policy Allocation Only Same Privates 60/40 Forecast Return 7.1 6.1 6.8 5.6 Standard Deviation 11.6 10.6 11.8 10.9 25th Percentile ret. 1 year -0.3 -0.8 -0.8 -1.5 5th Percentile ret.

1 year -10.2 -9.9 -10.8 -10.8 Sharpe Ratio 0.34 0.26 0.30 0.21 › Source: Cerity Partners 2026 and 2025 30 and 10-year capital market assumptions (see Appendix) 3 Liquidity assessment overview The Liquidity Coverage Ratio (LCR) is useful for quantifying liquidity risk. The LCR is the ratio of liquidity available to the liquidity needed over a specified time-period.

The calculation reflects PSERS’ specific asset allocation and cashflow profile. 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 ∑ 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 ∑ 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑎𝑎𝑎𝑎𝑎𝑎 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 ∑ 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 𝐿𝐿𝐿𝐿𝐿𝐿 = ∑ 𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑓𝑓𝑓𝑓𝑓𝑓 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 ∑ 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝑓𝑓𝑓𝑓𝑓𝑓 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 LCR Value Implication <1 Insufficient liquidity >1 Sufficient liquidity The analysis includes the following alternative versions of the LCR : — Return scenarios: Stochastic and deterministic — Cashflow scenarios: 1) Baseline and 2) adverse private market cashflows with distributions equal to capital calls 4 Policy allocation and liquidity assumptions By asset class Liquidity Policy At 12/31/2025, the actual private markets allocation is Asset Class Grouping Allocation 31.4%, relative to the 30% policy allocation.

This is used as Global Public Equity 32 the starting illiquid allocation in the analysis. Core Fixed Income 8 US Long Treasury 8 High Yield Corp. Credit 4 Liquid US TIPS 7 Assets Commodities 4 REITs 2 Public Infrastructure 5 Total Liquid 70 Private Equity 12 Private Private Credit 7 Market Private Real Estate 6 Assets Private Infrastructure 5 Total Private Markets 30 5 Cashflow projection and deterministic LCR analysis Baseline cashflow projection ($B) Market Value Total Fund Total Fund Private Market Liquid Fund of Assets (BOY) Cashflows Net Cashflow Cashflows Net Cashflow Net Cash Net Cash Capital Net Cash Net Cash January 1, Liquid Illiquid Total Contributions Benefit Payments Flow (%) Flow ($) Distributions Calls Flow (%) Flow ($) 2026 59 27 85 6.6 -8.3 -3% (1.7) 9.4 -4.7 5% 3.0 2027 65 25 90 6.8 -8.4 -2% (1.6) 8.9 -4.4 4% 2.9 2028 72 22 94 6.9 -8.6 -2% (1.7) 7.4 -4.4 2% 1.3 2029 78 21 99 7.0 -8.9 -2% (1.9) 5.6 -4.6 -1% (0.9) 2030 82 22 104 7.1 -9.1 -2% (2.0) 5.0 -4.7 -2% (1.7) 2031 85 24 109 7.2 -9.4 -3% (2.2) 5.4 -4.8 -2% (1.6) 2032 89 25 114 7.3 -9.6 -3% (2.3) 6.4 -4.8 -1% (0.7) 2033 94 26 120 7.5 -9.8 -2% (2.3) 7.0 -4.8 0% (0.1) 2034 100 26 126 7.6 -10.1 -3% (2.5) 7.4 -4.9 0% 0.0 2035 106 26 132 6.2 -10.3 -4% (4.1) 7.8 -4.9 -1% (1.2) › PSERS is expected to have 1.8 times as much liquidity Deterministic Liquidity Coverage Ratio (LCR) ($B) as required over the next 10-years under baseline Starting Liquid Assets 59 10-Year Contributions 70 return and cashflow assumptions.

Liquidity 10-Year Private Market Distributions 70 Available › The net cash flow position is expected to grow 10-Year Liquid Investment Income 52 increasingly negative over time due to increasing 10-Year Liquidity Available 251 benefit payments and declining expected private markets distributions. Liquidity 10-Year Benefit Payments & Expenses 93 Needs 10-Year Private Market Capital Calls 47 › The private market’s program is expected to provide 10-Year Liquidity Needed 140 more distributions than capital calls over the 10-year projection period.

10-Year LCR 1.8 Actuarial information provided by Gallagher. Private market capital calls and distributions provided by Aksia. Baseline return assumption is 7.2% for the overall portfolio and 6.3% for the liquid portfolio based on Cerity Partners’ 2026 10-year CMAs. 6 Monte Carlo LCR analysis Distribution of 10-year LCR outcomes 3 1.71 The baseline private market cashflow scenario assumes the illiquid net cashflows 1.21 2 0.71 are as expected.

Source fold: 2026 PSERS CMA update and liquidity stress test PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Asset-liability study fold

PSERS asset-liability study (posted as psers al study final).

OCTOBER 2024 Asset-Liability Study Pennsylvania Public School Employees’ Retirement System Executive Summary — Verus has conducted an asset-liability study for PSERS  Based on Verus’ 2024 10-year capital market assumptions  Numerous allocations were evaluated and winnowed down to five for review  The five allocations include: 1.

Adjusted (0% Leverage) – simplified structure; eliminates emerging markets debt and collapses gold into the commodities allocation 3. 4% Leverage – reintroduces moderate leverage at the total portfolio level 4. Long term SAA (8% Leverage) – represents the long-term SAA approved in December 2021 5. 60/40 allocation - included as a baseline PSERS 2 October 2024 Current state ASSETS AND LIABILITIES ($B) Asset Class Current Policy Total Equity 42.0 140 Global Public Equity 30.0 116.2 118.7 Private Equity 12.0 120 Total Fixed Income 33.5 100 Core Fixed income 6.0 US Long Treasury 8.0 73.9 72.1 76.8 76.4 80 High Yield Corp.

Credit 3.5 $B EMD (Hard and Local) 1.0 60 US TIPS 9.0 40 Private Credit 6.0 Total Real Assets 24.5 20 Commodities 2.5 Gold 2.5 0 Private Real Estate 7.0 6/30/2023 Preliminary 6/30/2024 REITs 2.5 Actuarial Value of Assets Fair Value of Assets Accrued Liability Public Infrastructure 5.0 Private Infrastructure 5.0 Preliminary 6/30/20231 6/30/20242 — Excess returns improved the plan’s funding on an AVA basis 64% AVA Funded Ratio 65% during fiscal 2024 — Future employer contributions are expected to meet the ADC.

62% MVA Funded Ratio 64% Employees share in investment risk and are currently contributing at the basic rate. 7.00% Discount Rate 7.00% 1Based on PSERS’ 2023 valuation report. — 10-year return forecast of current allocation is 7.6%, relative 2Based on projection results provided by Buck and Verus’ Q2 performance report.

to 7.0% actuarial requirement PSERS 3 October 2024 Asset mixes and portfolio analysis PSERS 4 October 2024 Potential asset allocation mixes Current SAA 0% Adjusted Adjusted LT SAA 60/40 Lev. Global Public Equity 30.0 32.0 28.0 36.0 60.0 Private Equity 12.0 12.0 12.0 12.0 0.0 Total Equity 42.0 44.0 40.0 48.0 60.0 Core Fixed Income 6.0 8.0 5.0 4.0 40.0 US Long Treasury 8.0 8.0 6.0 8.0 0.0 High Yield Corp.

Credit 3.5 4.0 3.5 4.0 0.0 EMD (Hard and Local) 1.0 0.0 2.0 2.0 0.0 US TIPS 9.0 7.0 10.0 10.0 0.0 Private Credit 6.0 7.0 6.0 6.0 0.0 Total Fixed Income 33.5 34.0 32.5 34.0 40.0 Commodities 2.5 4.0 5.0 2.5 0.0 Gold 2.5 0.0 5.0 2.5 0.0 Private Real Estate 7.0 6.0 7.0 7.0 0.0 REITs 2.5 2.0 3.5 4.0 0.0 Public Infrastructure 5.0 5.0 6.0 5.0 0.0 Private Infrastructure 5.0 5.0 5.0 5.0 0.0 Total Real Assets 24.5 22.0 31.5 26.0 0.0 Net Cash 0.0 0.0 -4.0 -8.0 0.0 Total Allocation 100.0 100.0 100.0 100.0 100.0 Total Private Markets 30.0 30.0 30.0 30.0 0.0 May not sum due to rounding PSERS 5 October 2024 PSERS expected risk and return: Verus CMAs Current SAA 0% Lev.

60/40 Equity 42.0 44.0 40.0 48.0 60.0 Fixed Income 33.5 34.0 32.5 34.0 40.0 Real Assets 24.5 22.0 31.5 26.0 0.0 Net Cash 0.0 0.0 -4.0 -8.0 0.0 Total Allocation 100.0 100.0 100.0 100.0 100.0 30-Year CMAs Current SAA 0% Lev. 60/40 Forecast Return 7.7 7.8 7.8 7.9 6.7 Standard Deviation 11.4 11.6 11.7 12.7 10.3 25th percentile ret.

1yr 0.4 0.3 0.2 -0.2 0.1 5th percentile ret. 1yr -9.3 -9.5 -9.8 -10.8 -8.8 Sharpe Ratio 0.4 0.4 0.4 0.4 0.3 10-Year CMAs Current SAA 0% Lev. 60/40 Forecast Return 7.6 7.7 7.7 7.9 6.6 Standard Deviation 11.4 11.6 11.7 12.7 10.3 25th percentile ret. 1yr 0.3 0.3 0.1 -0.3 -0.1 5th percentile ret. 1yr -9.4 -9.6 -9.8 -10.9 -9.0 Sharpe Ratio 0.4 0.4 0.4 0.4 0.3 Based on Verus’ 2024 Capital Market Assumptions PSERS 6 October 2024 PSERS distribution of returns 30-YEAR CMAS 10-YEAR CMAS 16.0% 16.0% 14.0% 14.7% 14.0% 14.6% 13.7% 14.0% 14.0% 13.7% 13.9% 13.9% 12.0% 12.2% 12.0% 12.0% 10.0% 10.1% 10.3% 10.3% 10.6% 10.0% 10.1% 10.2% 10.2% 10.6% 8.0% 8.9% 8.0% 8.8% 7.7% 7.8% 7.8% 7.9% 7.6% 7.7% 7.7% 7.9% 6.0% 6.7% 6.0% 6.6% 5.3% 5.4% 5.3% 5.3% 5.3% 5.3% 5.3% 5.2% 4.0% 4.6% 4.0% 4.4% 2.0% 2.0% 2.0% 2.0% 1.9% 1.6% 1.5% 1.9% 1.9% 1.8% 1.6% 1.4% 0.0% 0.0% Ten-Year Annualized Ten-Year Annualized Current SAA 0% Lev.

60/40 35.0% 35.0% 30.0% 30.7% 30.0% 30.6% 25.0% 28.0% 28.5% 28.7% 25.0% 27.9% 28.4% 28.7% 24.9% 24.8% 20.0% 20.0% 15.0% 15.6% 15.8% 15.9% 16.7% 15.0% 15.5% 15.8% 15.9% 16.7% 10.0% 13.9% 13.7% 10.0% 5.0% 7.7% 7.8% 7.8% 7.9% 6.7% 5.0% 7.6% 7.7% 7.7% 7.9% 6.6% 0.0% 0.4% 0.3% 0.2% 0.0% -0.2% 0.1% 0.3% 0.3% 0.1% -0.3% -0.1% -5.0% -5.0% -10.0% -9.3% -9.5% -9.8% -8.8% -10.0% -9.4% -9.6% -9.0% -10.8% -9.8% -10.9% -15.0% -15.0% One-Year One-Year Current SAA 0% Lev.

60/40 Based on Verus’ 2024 Capital Market Assumptions PSERS 7 October 2024 Risk PSERS 8 October 2024 Performance during historical stress periods PSERS 9 October 2024 Performance during historical stress scenarios PSERS 10 October 2024 Performance during historical stress scenarios PSERS 11 October 2024 Performance extremes during VIX regimes PSERS 12 October 2024 Max drawdown PSERS 13 October 2024 Liquidity analysis PSERS 14 October 2024 Liquidity coverage ratio (LCR) Will PSERS’ need to sell illiquid assets to cover cash outflows?

Source fold: PSERS AL study final PDF. Verify against the live page or PDF before citing beyond this page.

Annex: GASB 67 fold

GASB 67 report as of 30 June 2025 (financial-reporting measure, not the funding valuation).

Pennsylvania Public School Employees’ Retirement System Information Required Under Governmental Accounting Standards Board Statement No. 67 as of June 30, 2025 1205 Westlakes Drive Suite 290 Berwyn, PA 19312 September 11, 2025 Board of Trustees Pennsylvania Public School Employees’ Retirement System 5 North 5th Street Harrisburg, Pennsylvania 17101 Members of the Board: This valuation provides information concerning the Pennsylvania Public School Employees’ Retirement System (Retirement System or PSERS) in accordance with the Governmental Accounting Standards Board (GASB) Statement No.

67, effective for the fiscal year ending June 30, 2025. The Board of Trustees and staff of PSERS, its auditors, and PSERS employers may use this report for the review of the operation of the Retirement System and as a source of information for the Commonwealth of Pennsylvania (Commonwealth) financial statements.

The report may also be used in the preparation of the Retirement System’s audited financial statements. Use of this report for any other purpose or by anyone other than the Board of Trustees or the staff of PSERS or employers or its auditors may not be appropriate and may result in mistaken conclusions because of failure to understand applicable assumptions, methods, or inapplicability of the report for that purpose.

Gallagher should be asked to review any statement to be made on the basis of the results contained in this report. Gallagher will accept no liability for any such statement made without prior review by Gallagher. Future actuarial measurements may differ significantly from current measurements due to Retirement System experience differing from that anticipated by the economic and demographic assumptions, increases or decreases expected as part of the natural operation of the methodology used for these measurements, and changes in Retirement System provisions or applicable law.

Liability models necessarily rely on the use of approximations and estimates and are sensitive to changes in these approximations and estimates. Small variations in these approximations and estimates may lead to significant changes in actuarial measurements. An analysis of the potential range of such future differences is beyond the scope of this valuation.

Data, Assumptions, Methods and Plan Provisions This valuation was performed using employee census data, asset information, and confirmation of our understanding of Retirement System provisions provided by PSERS. Although we did not audit the data, we reviewed the data for reasonableness and consistency.

A detailed review of the data and its sources beyond that necessary to develop the analysis was not performed and is beyond the scope of the analysis. The accuracy of the results of the valuation is dependent on the accuracy of the data. As required under Section 8502(j) of the Retirement Code, experience studies are performed once in every five-year period.

This valuation was prepared using demographic and economic assumptions that were selected on the basis of an Experience Review covering the period July 1, 2015 to June 30, 2020. The Board of Trustees, at their March 5, 2021, June 11, 2021, and August 6, 2021 meetings, approved the use of the Experience Review’s recommended demographic and economic assumptions, which include a 7.00% per annum rate of investment return, effective with the June 30, 2021 actuarial valuation.

As mandated by the Retirement Code, these assumptions will remain in effect for valuation purposes until such time the Board of Trustees adopts revised assumptions. Board of Trustees Pennsylvania Public School Employees’ Retirement System September 11, 2025 Page 2 For purposes of GASB Statement No. 67, the Retirement System’s total pension liability as of June 30, 2025 was determined by rolling forward the Retirement System’s total pension liability as of June 30, 2024 to June 30, 2025.

27 (“ASOP 27”) require the actuary to identify the economic and demographic assumptions that have a significant effect on the measurement and, for those that are prescribed by another party, to provide the information and analysis the actuary performed to determine that the assumption does not significantly differ from what the actuary deems reasonable for the purpose of the measurement.

Source fold: GASB67 June 30 2025 PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Qualified independent representative fold

QIR policy (adopted final) — derivatives/business-conduct governance.

COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Qualified Independent Representative (QIR) Policy COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM TABLE OF CONTENTS I. QIR Policy Exhibit A Revision History Qualified Independent March 6, 2020 Representative Established Policy Revised June 11, 2021 Policy Revised March 15, 2022 Policy Revised May 31, 2024 QIR Policy May 2024 Page 2 of 10 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM I.

SCOPE This Policy applies to selection of qualified independent representatives (“QIRs”) of the Pennsylvania, Public School Employees’ Retirement System (“PSERS”) in connection with its Defined Benefit Fund (“The Fund”). PURPOSE This document sets forth the policy of PSERS with respect to the selection of qualified independent representatives (“QIRs”) (as defined in the rules of the Commodity Futures Trading Commission (“CFTC”)) and their involvement in swaps entered into by PSERS (“this Policy”).

This Policy with respect to QIRs enables PSERS to permit Swap Dealers (“SDs”) and Major Swap Participants (“MSPs”) to comply with the CFTC’s external business conduct rules. Investment Office Professionals The Investment Office maintains a list of individuals and/or third-party responsible for execution of tasks identified in this Policy.

Based on PSERS’ classification as a non-ERISA Special Entity under CFTC Rule 23.401(c)(2) or (4), each SD or MSP that wishes to enter into swap agreements with PSERS must, as a consequence of CFTC Rule 23.450, and as a precondition to proposing a particular transaction to PSERS, have a reasonable basis to believe that PSERS has a qualified independent representative that: 1.

has sufficient knowledge to evaluate the transaction and its risks; 2. is not subject to a statutory disqualification; 3. undertakes a duty to act in the best interests of PSERS; 5. makes appropriate and timely disclosures to PSERS; 6. evaluates, consistent with any guidelines provided by PSERS, the fair pricing and appropriateness of the transaction; and 7.

is subject to restrictions on certain political contributions imposed by the CFTC, the Securities and Exchange Commission (“SEC”), or a self-regulatory organization subject to the jurisdiction of the CFTC or the SEC; provided however, that this criteria shall not apply if the representative is an employee of PSERS.1/ 1/ The CFTC’s rules contemplate that a QIR for PSERS may be a PSERS employee or a third party.

QIR Policy May 2024 Page 3 of 10 COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM CFTC Rule 23.450 further provides a safe harbor pursuant to which a SD or MSP is deemed (without further duty of inquiry in the absence of contradictory facts) to have a reasonable basis to believe that PSERS has a QIR if the following conditions are met: 1.

PSERS represents in writing to the SD or MSP that: i. it has complied in good faith with written policies and procedures reasonably designed to ensure that it has selected a QIR that satisfies the applicable requirements of the CFTC rules, and ii. that such policies and procedures provide for ongoing monitoring of the performance of such QIR consistent with the requirements of the CFTC rules.

Source fold: QIR adopted final PDF. Verify against the live page or PDF before citing beyond this page.

Annex: Placement-agent policy fold

Placement Agent Policy (adopted final).

COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM Placement Agent Policy TABLE OF CONTENTS I. SCOPE ......................................................................................................... PURPOSE ....................................................................................................

POLICY......................................................................................................... DEFINITIONS ............................................................................................... ROLES AND RESPONSIBILITIES ...............................................................

PROCESS .................................................................................................... 7 APPENDIX A: PLACEMENT AGENT INFORMATION DISCLOSURE . Revision History Placement Agent Policy Established March 6, 2020 Policy Revised October 23, 2025 Placement Agent Policy October 2025 Page 2 of 15 I.

SCOPE This Policy applies to all investments made by the Pennsylvania Public School Employees’ Retirement System (“PSERS” or “the System”) through external Investment Managers that manage assets of PSERS’ Defined Benefit Fund (“DB Fund”) for transactions entered into after the effective date of this Policy.

PURPOSE As fiduciaries, the members of the PSERS Board of Trustees (“Board”) and Investment Office Professionals must act solely in the interests of the members of the System and for the exclusive benefit of the System’s members. The purpose of this Policy is to bring transparency to placement agent activity to ensure the integrity of the Board’s decision- making process, to avoid any potential conflicts of interest (or the appearance of the same), and to help ensure that all investment decisions are made solely on their merits and in a manner consistent with the fiduciary duties of the Board.

For purposes of this Policy, "Board" and "Board member(s)" include designee(s). POLICY No Placement Agents (as defined below) shall be used and no payments from or on behalf of PSERS to Placement Agents shall be made in connection with PSERS’ investments in or through Investment Managers, including without limitation any and all third party sponsors of general partners and/or managers of hedge funds, private equity funds, private credit funds, real estate funds, infrastructure funds, and public securities transactions.

In addition, PSERS shall not bear any portion of placement agent fees incurred by Investment Managers or funds for the solicitation of third-party investors in connection with such investments. This Policy shall be applied in a manner consistent with PSERS’ fiduciary duty, demonstrating prudence and observing best practices.

All investment decisions and recommendations must be free of impropriety or improper influence and the appearance of either. Placement Agent Policy October 2025 Page 3 of 15 IV. Associated Party: Any (i) partner, managing member or executive officer, or other individual with a similar status or function; (ii) employee who solicits a government entity for the investment manager and any person who supervises, directly or indirectly, such employee; or (iii) political action committee controlled by the investment manager or by any person described in (i) or (ii).

Source fold: placement agent policy PDF. Verify against the live page or PDF before citing beyond this page.

Annex: 2025 Board resolutions fold

Selected 2025 Board resolution page language (IPS, proxy RFP, actuarial certification, Funston closeout, manager commitments). Member-account dockets are not re-litigated here.

2025 Board Meeting Resolutions 2025-01 Finance and Actuarial Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-01 Finance and Actuarial Committee 2025 Work Plan January 10, 2025 RESOLVED , that the Public School Employees' Retirement Board accepts the recommendation of the Finance and Actuarial Committee and approves the attached Finance and Actuarial Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee Chair to revise the Work Plan, as needed.

2025-02 Health Care Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-02 Health Care Committee 2025 Work Plan January 10, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Health Care Committee and approves the attached Health Care Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee Chair to revise the Work Plan, as needed.

2025-03 Governance and Administration Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-03 Governance and Administration Committee 2025 Work Plan January 10, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Governance and Administration Committee and approves the attached Governance and Administration Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee Chair to revise the Work Plan, as needed.

2025-04 2025 Board Education Plan 1/10/2025 PSERB Resolution 2025-04 2025 Board Education Plan January 10, 2025 RESOLVED , that the Public School Employees' Retirement Board ("the Board) accepts the recommendation of the Governance and Administration Committee and adopts the 2025 Board Education Plan and authorizes the Executive Director, in consultation with the Board Chairperson, to alter the schedule or topic or provide for additional presentations as a result of changing priorities.

2025-05 Defined Contribution Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-05 Defined Contribution Committee 2025 Work Plan January 10, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Defined Contribution Committee and approves the attached Defined Contribution Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee Chair to revise the Work Plan, as needed.

2025-06 Benefits and Appeals Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-06 Benefits and Appeals Committee 2025 Work Plan January 10, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Benefits and Appeals Committee and approves the attached Benefits and Appeals Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee Chair to revise the Work Plan, as needed.

2025-07 Investment Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-07 Investment Committee 2025 Work Plan January 10, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Investment Committee and approves the attached Investment Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee Chair to revise the Work Plan, as needed.

2025-08 Audit, Compliance and Risk Committee 2025 Work Plan 1/10/2025 PSERB Resolution 2025-08 Audit, Compliance and Risk Committee 2025 Work Plan January 10, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Audit, Compliance and Risk Committee and approves the attached Audit, Compliance and Risk Committee Work Plan for 2025 to guide the Committee Chair in the development of agendas and authorizes the Committee 2025-09 Re: Womble Bond Dickinson (US) LLP Internal Investigation Recommendations 1/10/2025 PSERB Resolution 2025-09 Re: Womble Bond Dickinson (US) LLP Internal Investigation Recommendations January 10, 2025 RESOLVED , that the Public School Employees' Retirement Board (the “Board”) accepts the submission of the Internal Investigation Recommendations submitted by Womble Bond Dickinson (US) LLP and authorizes the Board Chairperson to assign the recommendations to the relevant committees for consideration and adoption.

2025-10: RFP#2024-5 Election Management and Administrative Services for the Election of Public School Employees’ Retirement Board Trustees 2/26/2025 PSERB Resolution 2025-10 RFP#2024-5 Election Management and Administrative Services for the Election of Public School Employees’ Retirement Board Trustees February 26, 2025 RESOLVED , that the Public School Employees’ Retirement Board (the “Board”) adopts the recommendation of the Governance and Administration Committee and engages Merriman River Associates, LLC DBA Merriman River Associates Group for RFP #2024-4.

The final terms and conditions of the contract are subject to legal due diligence and must be satisfactory to the Deputy Executive Director for Administration, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on, or by a memo to that effect appended to, the implementing contract.

2025-11: 2025 Cyber Security Insurance Policy 2/26/2025 PSERB Resolution 2025-11 2025 Cyber Security Insurance Policy February 26, 2025 RESOLVED , that the Public School Employees’ Retirement Board (the “Board”) hereby approves the 2025 cyber insurance policy through Arthur J. Gallagher Risk Management Services (Gallagher), an insurance broker, with an aggregate insurance limit and retention within ranges as outlined in the Gallagher insurance proposal.

The final terms and conditions of the insurance policy must be satisfactory to the Office of Chief Counsel, the Deputy Executive Director for Administration, and the Office of Executive Director. 2025-12: Re: Fiscal Year 2024-2025 Enterprise Compliance Plan 3/21/2025 PSERB Resolution 2025-12 Re: Fiscal Year 2024-2025 Enterprise Compliance Plan March 21, 2025 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Audit, Compliance and Risk Committee and adopts the Fiscal Year 2024-2025 Enterprise Compliance Plan.

2025-13: Re: Community College of Philadelphia; Docket No. 2019-15 3/21/2025 PSERB Resolution 2025-13 Re: Community College of Philadelphia; Docket No. 2019-15 March 21, 2025 RESOLVED, that in the matter of Community College of Philadelphia, Docket No. 2019-15, the Public School Employees’ Retirement Board (the "Board") accepts the recommendation of the Benefits and Appeals Committee and adopts the proposed Opinion and Order of the Board, and refers this matter back to the Hearing Examiner to determine which Community College of Philadelphia employees must be enrolled in PSERS.

2025-14: Re: 2024 Stress Test Report 3/21/2025 PSERB Resolution 2025-14 Re: 2024 Stress Test Report March 21, 2025 RESOLVED , that the Public School Employees’ Retirement Board accepts the recommendation of the Finance and Actuarial Committee and adopts the 2024 Stress Test Report . 2025-15: Re: Renewal of the Administrative Services Agreement (“ASA”) with Voya Institutional Plan Services, LLC 3/21/2025 PSERB Resolution 2025-15 Re: Renewal of the Administrative Services Agreement (“ASA”) with Voya Institutional Plan Services, LLC March 21, 2025 RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) accepts the recommendation of the Defined Contribution Committee of the Board and renews the Administrative Services Agreement (“ASA”) with Voya Institutional Plan Services, LLC for the Second Renewal Period of an additional twelve months beginning July 1, 2025 through June 30, 2026 pursuant to Section 5.1 of the ASA.

2025-16: Re: Investment Due Diligence Package Policy 3/21/2025 PSERB Resolution 2025-16 Re: Investment Due Diligence Package Policy March 21, 2025 RESOLVED , that the Public School Employees' Retirement Board accepts the recommendation of the Investment Committee and adopts the Investment Due Diligence Package Policy, attached .

2025-17: Re: Institutional Limited Partners Association Templates Endorsement 3/21/2025 PSERB Resolution 2025-17 Re: Institutional Limited Partners Association Templates Endorsement March 21, 2025 RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) accepts the recommendation of the Investment Committee and adopts the following statement: WHEREAS , in recognition of the Board’s core value of public accountability and transparency and commitment to the highest standards of ethics and accountability; and WHEREAS , a single standard for fee disclosures and a greater standardization towards cash flow reporting and methodology for performance metrics are strongly desired to efficiently monitor and report private markets investments activity; and WHEREAS , the recently revised ILPA Reporting Template and the newly created ILPA Performance Template prepared by the Institutional Limited Partners Association (“ILPA”) provide effective and efficient uniform reporting by general partners throughout private markets investments; and WHEREAS , in acknowledgement of the Board’s historical and continued strong preference that its general partners adopt and use the ILPA templates throughout its private markets investments; and NOW THEREFORE , the Board endorses the recently revised ILPA Reporting Template and the newly created ILPA Performance Template and strongly encourages all general partners to complete and adopt these new templates in accordance with IPLA guidance.

Source fold: https://www.pa.gov/agencies/psers/board-of-trustees/board-resolutions/2025-board-meeting-resolutions. Verify against the live page or PDF before citing beyond this page.

Annex: 2024 Board resolutions fold

Selected 2024 Board resolution page language (proxy policy 2024-20, IPS amendments, ADC certification).

2024 Board Meeting Resolutions 2024-01 Re: Renewal of the Administrative Services Agreement (“ASA”) with Voya Institutional Plan Services, LLC 2/1/2024 PSERB Resolution 2024-01 Re: Renewal of the Administrative Services Agreement (“ASA”) with Voya Institutional Plan Services, LLC February 1, 2024 RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) hereby accepts the recommendation of the Defined Contribution Committee of the Board and renews the Administrative Services Agreement (“ASA”) with Voya Institutional Plan Services, LLC for the First Renewal Period of an additional twelve months beginning July 1, 2024 through June 30, 2025 pursuant to Section 5.1 of the ASA.

2024-02 Re: 2024 CyberSecurity Insurance Policy 2/1/2024 ​PSERB Resolution 2024-02 Re: 2024 CyberSecurity Insurance Policy February 1, 2024 RESOLVED , that the Public School Employees' Retirement Board (the "Board") hereby approves the 2024 cyber insurance policy through Lockton Insurance, an insurance broker, with an aggregate insurance limit and retention within ranges as outlined in the Lockton Cyber insurance proposal.

The final terms and conditions of the insurance policy must be satisfactory to the Office of Chief Counsel, Chief Information Security Officer, and the Office of the Executive Director.​ 2024-03 Re: Audit, Compliance, and Risk Committee 2024 Work Plan 3/22/2024 PSERB Resolution 2024-03 Re: Audit, Compliance, and Risk Committee 2024 Work Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Audit, Compliance, and Risk Committee to approve the Audit, Compliance, and Risk Committee Work Plan for 2024 ​, as set forth in the attachment, to be used as a guide in the development of agendas.

2024-04 ​ Re: Audit, Compliance, and Risk Committee Charter 3/22/2024 PSERB Resolution ​2024-04 ​ Re: Audit, Compliance, and Risk Committee Charter March 22, 2024 RESOLVED , that the Public School Employees' Retirement Board hereby accepts the recommendation of the Audit, Compliance and Risk Committee and adopts the changes to the Audit, Compliance and Risk Committee Charter ​.

2024-05 Re: Enterprise Risk Management Program Charter 3/22/2024 PSERB Resolution ​2024-05 Re: Enterprise Risk Management Program Charter March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Audit, Compliance, and Risk Committee to adopt the Enterprise Risk Management Program Charter ​.

2024-06 Re: Compliance Program Charter 3/22/2024 2024-06 PSERB Resolution Re: Compliance Program Charter March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Audit, Compliance, and Risk Committee to adopt the Compliance Program Charter . 2024-07 Re: Internal Audit Office Charter 3/22/2024 PSERB Resolution​ 2024-07 Re: Internal Audit Office Charter March 22, 2024 2024-08 Re: 2024 Board Education Plan 3/22/2024 ​2024-08 PSERB Resolution Re: 2024 Board Education Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board ("the Board) accepts the recommendation of the Governance and Administration Committee and adopts the 202​4 Board Education Plan​ and authorizes the Executive Director, in consultation with the Board Chairperson, to alter the schedule or topic or provide for additional presentations as a result of changing priorities.

2024-09 Re: Governance and Administration Committee 2024 Work Plan 3/22/2024 ​2024-09 PSERB Resolution Re: Governance and Administration Committee 2024 Work Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Governance and Administration Committee to approve the Governance and Administration Committee Work Plan for 2024 ​, as set forth in the attachment, to be used as a guide in the development of agendas.

2024-10 ​ Re: Defined Contribution Committee 2024 Work Plan 3/22/2024 PSERB Resolution ​2024-10 Re: Defined Contribution Committee 2024 Work Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Defined Contribution Committee to approve the Defined Contribution Committee Work Plan for 2024 ​, as set forth in the attachment, to be used as a guide in the development of agendas.

2024-11 Re: Defined Contribution Benchmarking Subscription Services—CEM Benchmarking Inc. 3/22/2024 2024-11 PSERB Resolution Re: Defined Contribution Benchmarking Subscription Services—CEM Benchmarking Inc. March 22, 2024 RESOLVED , that the Public School Employees’ Retirement Board (the “Board”) accepts the recommendation of the Defined Contribution Committee of the Board and moves to recommend that the Board engages CEM Benchmarking Inc.

for Defined Contribution Benchmarking Subscription Services at a base cost of $87,000 for a three-year term. The final terms and conditions of the contract are subject to legal due diligence and must be satisfactory to the Deputy Executive Director and Director of Defined Contribution Investments, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on, or by a memo to that effect appended to, the implementing contract.​ 2024-12 Re: Health Care Committee 2024 Work Plan 3/22/2024 2024-12 PSERB Resolution Re: Health Care Committee 2024 Work Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Health Care Committee to approve the Health Care Committee Work Plan for 2024 ​, as set forth in the attachment, to be used as a guide in the development of agendas.

2024-13 Re: Finance and Actuarial Committee 2024 Work Plan 3/22/2024 2024-13 PSERB Resolution Re: Finance and Actuarial Committee 2024 Work Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Finance and Actuarial Committee to approve the Finance and Actuarial Committee Work Plan for 2024 ​, as set forth in the attachment, to be used as a guide in the development of agendas.

2024-14 ​Re: Benefits and Appeals Committee 2024 Work Plan 3/22/2024 PSERB Resolution ​2024-14 Re: Benefits and Appeals Committee 2024 Work Plan March 22, 2024 RESOLVED, that the Public School Employees' Retirement Board accepts the recommendation of the Benefits and Appeals Committee to approve the Benefits and Appeals Committee Work Plan for 2024 ​, as set forth in the attachment, to be used as a guide in the development of agendas.

Source fold: https://www.pa.gov/agencies/psers/board-of-trustees/board-resolutions/2024-board-meeting-resolutions. Verify against the live page or PDF before citing beyond this page.

Annex: Investment Program hub fold

Investment Program hub: fiduciary framing, 13F, AL/liquidity studies, manager-fee transparency.

Investment Program Consistent with the highest fiduciary standards, we manage the investment program at PSERS, endeavoring to generate long-term, net of fee, risk-adjusted returns which meet or exceed the Board’s Policy Index. Transparency is very important to PSERS and we take our fiduciary duty to our members very seriously.

PSERS has a history of providing very detailed information about our investments, not only with regard to investment manager fees, performance, and investment policy and guidelines, but also about the hiring of PSERS’ investment managers. PSERS' Most Recent SEC Form 13F Filing SEC Form 13​F Filing PSERS Asset Liability Study Results ​ Liquidity Analysis June 2026 Asset-Liability October 2024 Asset Allocation & Performance Detailed information on PSERS Investment Managers Hiring and Fees Investment Managers & Fees Investment Policies PSERS reviews the IPS and Stand Alone Policies at a minimum on an annual basis.

Updated copies of the IPS and Stand Alone Policies are posted throughout the year whenever a change is made to the documents.

Source fold: https://www.pa.gov/agencies/psers/transparency/investment-program. Verify against the live page or PDF before citing beyond this page.

Annex: Investment policies hub fold

Policies page: IPS and stand-alone policies reviewed at least annually; proxy-voting agent stack.

Investment Policies PSERS reviews the Investment Policy Statement (IPS) and Stand Alone Policies at a minimum on an annual basis. Updated copies of the IPS and Stand Alone Policies are posted throughout the year whenever a change is made to the documents. ​Part I: Investment Policy Statement (IPS) Investment Polic​y Statement – Defined Benefit Plan Part II: Asset Class Policies Public Markets Asset Class Policy Private Markets Asset Class Policy External Manager Due Diligence and Monitoring Policy Part III: Investment-Wide Policies Currency Hedging Policy Derivatives and Leverage Policy External Managers' Insurance Policy Liquidity Policy Placement Agent Policy Qualified Independent Representative (QIR) Policy Securities Lending Policy Part IV: Proxy Voting Policies PSERS hires a proxy voting agent to vote PSERS shares according to PSERS established proxy voting policies.

Additional information on PSERS proxy voting policies and voting history is below. Corporate Governance Focused Thematic Voting Policy 2006 to present Proxy Voting History Part V: Premium Assistance Premium Assistance Guideline Divestment Laws PSERS works in cooperation with the Pennsylvania Treasury Department, the State Employees' Retirement System, and the Pennsylvania Municipal Retirement System to comply with divestment legislation.

Act 44 of 2010 prohibits PSERS and other pension funds and departments that invest public funds from holding or acquiring assets of "scrutinized companies" that have business operations in Iran or Sudan. Act 132 of 2022 prohibits PSERS and other pension funds and departments that invest public funds from holding or acquiring assets of "scrutinized companies" that are based in Russia or Belarus or that have been sanctioned by the U.S.

Source fold: https://www.pa.gov/agencies/psers/transparency/investment-program/guide. Verify against the live page or PDF before citing beyond this page.

Annex: Financial reports hub fold

Financial reports hub listing ACFR, SAFR, GASB, quarterly statements, valuations, budget hearings, stress tests.

Source fold: https://www.pa.gov/agencies/psers/transparency/financial-reports. Verify against the live page or PDF before citing beyond this page.

Annex: Strategic plan announcement fold

Strategic plan announcement PDF posted under About.

Pennsylvania Public School Employees’ Retirement System Strategic Plan 2023-2026 Published October 04, 2023 A Message from Our Executive Director We are pleased to announce that on Friday, August 11, 2023, the Public School Employees Retirement System (PSERS) Board of Trustees formally adopted a strategic plan framework for our organization.

The strategic plan represents months of hard work by both members of the Board and staff to better define and plan the work that we’re doing today, and the work we’ll be doing over the next few years. To ensure that our strategic plan was created with a sense of purpose and built on a strong foundation, we revisited PSERS’ mission, vision, and values.

Something that had not been done since 2008. We strongly believe that by committing to this mission, vision, and set of Terrill (Terri) J. Sanchez values, we will accomplish everything that we set out to achieve. PSERS Executive Director Guided by our functions, the Board identified six strategic priorities.

These strategic priorities are supported by 25 initiatives, many of which are either already under way or will begin soon. These clear priorities and initiatives provide the focus we need to efficiently work together on the right things at the right time. We are all excited to embark on this journey over the next few years.

We know it will be challenging at times, but we are confident that we have the right staff, leaders, and high-level plans in place to achieve what is laid before us. We also recognize that while this is our plan today, changes to our operating environment require us to be more agile than ever. As such, we intend for this to be a living document.

We will ensure that our strategic plan is kept up to date and accurately reflects the work we are doing, and plan to do, to meet the needs of those we serve. Sanchez PSERS Executive Director 2 PSERS Strategic Plan | 2023-2026 About Us PSERS was established on July 18, 1917, and officially began operations on July 1, 1919, to provide retirement Board of Trustees benefits to public school employees of the Commonwealth Christopher Santa Maria, Board Chair of Pennsylvania.

PSERS also sponsors the Health Options Active Member/Participant Program (HOP) which continued to see steady growth in Susan C. Lemmo, Interim Vice Chair enrollment and had more than 123,000 PSERS retirees, Retired Member/Participant spouses, and dependents enrolled as of Dr. Secretary of Education Honorable Stacy Garrity PSERS’ role expanded upon the passage of Act 5 of 2017 to Treasurer of Pennsylvania include oversight of two new membership classes consisting Wendy Spicher of a defined benefit (DB) and a defined contribution (DC) Secretary of Banking and Securities component and one membership class with only a DC Honorable Greg Rothman component.

PSERS currently serves approximately 500,000 State Senator active and retired public school employees. Muth State Senator PSERS is administered by a staff of 382 and has 770 reporting Honorable Matt D. PSERS is headquartered in State Representative Harrisburg, Pennsylvania, and also has seven field offices in Honorable Torren Ecker strategic areas of the Commonwealth to enable direct contact State Representative with members and employers.

Source fold: strategic plan announcement PDF. Verify against the live page or PDF before citing beyond this page.

Annex: About / home fold

About and homepage language including P.E.R.S. values (Professionalism, Excellence, Respect, Stewardship) where printed.

About PSERS Since 1917, PSERS has been serving the public school employees of the Commonwealth of Pennsylvania. The number of individuals we serve has grown from 37,000 in 1919 to more than 500,000 today. Balancing stability and growth through prudent investment policies, PSERS' assets have grown from $6 billion in 1982 to approximately $83.7 billion as of June 30, 2025.

PSERS was created as a defined benefit plan; a qualified trust under Section 401(a) of the Internal Revenue Service Code. PSERS' role expanded upon the passage of Act 5 of 2017 to include oversight of two new hybrid options consisting of defined benefit and defined contribution (DC) components and a stand-alone DC plan.

To serve the increasingly complex retirement needs of our members, PSERS continues to initiate and to expand its active and retired member programs and to enhance return through a safe yet agile investment policy. About PSERS gives you the opportunity to learn about the administration of the Fund. Our mission is the driving force of our operations.

We invite you to get to know the workings of our Board and staff, the history of the Fund and some interesting facts about our membership. You can also contact us with your retirement questions. Defined Benefit Plan Snapshot More than 500,000 Approximately 256,000 active members Approximately 255,00 retired members/beneficiaries Net Position $82.6 billion Average 2025 Annuity Paid (annuitants, survivor, beneficiaries, disabled annuitants) $26,522 per year Total Pension Benefits Paid $7.7 billion, on a cash basis Member Contribution Rate Member contributions range from 5.25% to 10.30% of payroll depending on their class of membership Number of Employers Employer Contribution Rate 33.59% of payroll, beginning July 1, 2026 The FY 2025/2026 rate provides 100% of the actuarially required rate based on sound actuarial practices and principles.

Actuarial Funded Ratio (as of June 30, 2024) 64.8% on actuarial basis with an unfunded liability of $42.0 billion Funding Sources for the 25-year period ended June 30, 2025 14% member contributions 36% employer contributions 50% investment earnings Investment Returns PSERS’ fiscal year end; audited, annualized, net of fees 9.67% 1-year; 7.09% 3-year; 9.36% 5-year; 7.48% 10-year; 6.89% 20-year Investment Rate of Return Assumption 7.00% annual investment return assumption As of June 30, 2025 Defined Contribution Plan Snapshot Approximately 130,000 $557.5 million Investment Income $59.0 million Total Participant Mandatory Contributions $91.1 million Total Employer Contributions $69.9 million Total Distributions $14.5 million Our Mission, Vision, & Values Our Mission: To be a partner with our members to fulfill the promise of a secure retirement.

Our Vision: To be a trusted partner in delivering exceptional retirement services and benefits. Our Values: P ublic accountability and transparency. - We are committed to holding ourselves to the highest standards of ethics and accountability and believe that openness and honesty are fundamental to PSERS’ success.

S taff growth and development - We are committed to cultivating a human-centered organizational culture and developing team-member competencies to meet the needs of today and tomorrow. E xceptional levels of service - We are committed to continuous improvement and exploring innovative ways to increase productivity and enhance the customer experience.

R espect for our members, stakeholders, and staff -We are committed to creating an organizational culture that fosters diversity, equity, and inclusion where everyone receives fair treatment and civility. S tewardship of resources and investments - We are committed to prudently investing the assets and effectively managing the resources entrusted to our care.

Since 1917, PSERS has been serving the public school employees of the Commonwealth of Pennsylvania. The number of individuals we serve has grown from 37,000 in 1919 to more than 500,000 today. For over 100 years, PSERS has provided secure retirement benefits for millions of public school employees. It's time for you to start your own retirement journey!

As you plan to leave school employment, learn about the options and benefits available to you.

Source fold: pa.gov/agencies/psers about + home. Verify against the live page or PDF before citing beyond this page.

Annex: Official member videos (no VideoObject)

Official class-election member videos exist on pa.gov and the PA Public School Employees’ Retirement System YouTube channel. This elite profile does not embed them as VideoObject: they are member-education clips, not an institution-strategy briefing.

Member Class Election Videos Your membership class determines how much you and your employer contribute to your retirement benefit and how much you’ll receive in retirement. New members only have 90 days to change their membership class so PSERS has created three short videos to assist you in making this important decision.

PSERS Class Election Video 1: Understanding Your PSERS Benefit - provides a high-level overview of the PA Public School Employees’ Retirement System (PSERS) retirement benefit options for new members. PSERS Class Election Video 2: Understanding Membership Classes - compares the PA Public School Employees’ Retirement System (PSERS) membership classes: Class T-G, Class T-H, and Class DC.

PSERS Class Election Video 3: Selecting Your Membership Class - provides examples of what your benefit may look like in each membership class as well as instructions for remaining in your current membership class and electing a new class.

Source fold: https://www.pa.gov/agencies/psers/member-resources/new-to-psers/class-election/class-election-videos. Verify against the live page or PDF before citing beyond this page.

Annex: Peer map

U.S. public-pension peers already on UAO include CalPERS and CalSTRS (California giants), NYSCRF, Florida SBA, OPERS and STRS Ohio (Ohio), MassPRIM, LACERA (largest U.S. county system), and NJDOI. Keva is a European public-sector earnings-related peer with EUR reporting — different currency discipline. PSERS is a Pennsylvania statutory school-employee system with official USD reporting; do not FX-convert or blend with those peers’ local-currency AUM.

Annex: Research notes

  • Opened primaries only; no invented people, titles, AUM, or seats.
  • Phones and personal emails from Contact/footer directories intentionally omitted (public-safe).
  • Board roster is the ACFR/SAFR August 2025 print plus Jul 2026 Chair/Vice Chair quotes — not a live HTML member table (the Board page does not list names in opened main content).
  • Director of Government Affairs title appears on org/staff adjacent to Communications Director; only Alison B. Evans is clearly named as Communications Director — no invented Gov Affairs name.
  • VideoObject omitted: official YouTube/class-election videos are member education.
  • Desk registry-people-desk-41.json untouched (sha a13480ec21c4dc98…). Seat-lock + Atsuko Iino + four seats + lastsweep 2026-09-11 carried in theme.
  • Daily-refresh left disabled. Did not message CoS or SEO.

FAQ

What is PSERS?

The Pennsylvania Public School Employees' Retirement System (PSERS) is a governmental, cost-sharing, multiple-employer pension system created by the Public School Employees' Retirement Code. Founded in 1917 with operations beginning in 1919, it administers a statewide defined-benefit plan for Pennsylvania public-school employees and, after Act 5 of 2017, hybrid defined-benefit/defined-contribution options and a stand-alone DC plan, plus premium assistance and a voluntary Health Options Program. The 15-member Board is an independent administrative board of the Commonwealth. Official site: https://www.pa.gov/agencies/psers (www.psers.pa.gov redirects there).

What is PSERS’s latest official USD asset figure?

Prefer dated official USD from pa.gov/PSERS — do not use Instantiations’ older ~US$75 billion public estimate as a headline, and do not invent a blended number. The Cerity Partners Investment Performance Review for the quarter ended 31 March 2026 shows Total Fund assets of US$85.703 billion (~US$85.7 billion), matching the 8 July 2026 official news print of approximately $85.7 billion. The unaudited quarterly Statement of Fiduciary Net Position as of the same date shows total fiduciary net position of about US$87.852 billion. At fiscal year-end 30 June 2025, condensed SAFR statements show fiduciary net position of US$83.729 billion (~US$83.7 billion) and an investment portfolio of US$81.4 billion at fair value (one component of net position).

What returns did PSERS publish for FY 2025 and the year to 31 March 2026?

For the fiscal year ended 30 June 2025, SAFR reports a time-weighted net return of 9.67% versus a Policy Index of 9.56% (+11 basis points), a five-year annualized net of 9.36%, and a ten-year annualized net of 7.48% versus a 7.00% long-term assumption. For the quarter ended 31 March 2026, the Total Fund Composite returned 0.37% net (fiscal year-to-date 6.12%; one-year 10.26%; three-year 8.49%; five-year 7.42%; ten-year 8.41%). Past performance is not a reliable indicator of future results.

Who is Executive Director and who is CIO?

Uri Monson is Executive Director, appointed in December 2025 and in role from 13 December 2025, succeeding Terrill Sanchez (retired June 2025). Benjamin L. Cotton, Ed.D., CFA, is Chief Investment Officer (from 17 January 2023). Cotton briefly served as Interim Executive Director during the 2025 search; live Organization and Staff copy treats that interim assignment as past. PSERS does not publish a separate CEO title; the Executive Director is described on the staff page as the chief executive officer of the agency. FY2025 ACFR/SAFR covers still list Cotton as Interim Executive Director & CIO because they describe that fiscal-year reporting period — they are not the current seat.

How is PSERS governed?

A 15-member Board of Trustees, an independent administrative board of the Commonwealth, stands in a fiduciary relationship to members and has exclusive control and management of the Fund under the Retirement Code, including certifying contribution rates, authorizing the actuarial valuation and independent audit, and overseeing the Executive Director and CIO. The ACFR ‘August 2025’ roster lists Chair Richard Vague (Governor Appointee) and Vice Chair Susan Lemmo (Elected Retired Member). The 8 July 2026 performance news still quotes Vague as Chair and Lemmo as Vice Chair.

What is the funded status?

Gallagher’s actuarial valuation as of 30 June 2025 (letter 28 February 2026) reports a total funded ratio of 66.6% on an actuarial-value basis (actuarial assets about US$81.45 billion versus accrued liability about US$122.36 billion) and 67.6% on a market-value basis. The Board certified a 33.59% employer contribution rate for FY 2026/27 at its 11 December 2025 meeting. The December 2025 SAFR, which predates that valuation print, cited a fair-value funded ratio of 68.04% at 30 June 2025 and an actuarial funded ratio of 64.8% as of 30 June 2024. Do not silently equate those vintages.

How is the Total Fund allocated as of 31 March 2026?

Cerity Partners’ Total Fund summary (US$85.703 billion): Public Equity 30.7%; Private Equity 11.5%; Public Fixed Income 24.0%; Private Fixed Income 6.7%; Public Real Assets 11.1%; Private Real Assets 11.8%; Opportunistic 0.9%; Cash 3.2%; Financing Composite −2.1%; Cash & Enhanced Cash 5.4%. Weights are as printed; this profile does not invent a reconciliation of overlapping cash lines.

What is PSERS’s investment philosophy?

The Board’s Investment Policy Statement (adopted 23 October 2025) states that assets should be managed to PSERS’ unique liability stream, funding sources, cash flows, and size, focusing on prudent long-term wealth accumulation. Beliefs cover uncertainty, asset allocation as the dominant risk/return decision, multi-dimensional diversification, drawdown and liquidity risk for an underfunded/negative-cash-flow plan, total-fund leverage as a diversification tool, disciplined rebalancing, use of portfolio size, and private-markets allocations that may be justified by an illiquidity premium. The statutory fiduciary standard is 24 Pa.C.S. §8521.

Why does this profile use Organization and GovernmentOrganization?

PSERS is a statutory Commonwealth pension system and an independent administrative board; the ACFR/SAFR describe it as a component unit of the Commonwealth of Pennsylvania. This UAO profile models Organization + GovernmentOrganization, with sameAs limited to official pa.gov / psers.pa.gov URLs. It is not a sovereign wealth fund.

Does this profile invent AUM or leadership seats?

No. Asset figures, returns, allocation weights, membership counts, board officers, and executive titles are taken from dated official pa.gov HTML and PDFs opened for this research pack. Instantiations’ ~US$75 billion estimate and the INST dual-title ‘CIO also Interim Executive Director’ are treated as stale relative to live official USD and live Organization and Staff / Executive Director pages. Private emails and switchboard numbers are omitted.

Is PSERS the same as SERS or a Pennsylvania SWF?

No. PSERS is the public-school employees’ system. It is not the State Employees’ Retirement System (SERS), not the Pennsylvania Treasury, and not a sovereign wealth fund. Act 5 of 2017 expanded PSERS into hybrid and stand-alone DC options; it did not convert PSERS into a commercial asset manager or SWF.

Where should corrections be sent?

Corrections: info@universalassetowners.com. Prefer official pa.gov/PSERS primaries over secondary press when figures conflict. Any UAO Influence Index is an editorial composite for navigation — not a credit rating or official PSERS metric.

Sources &amp; further reading

Completeness note

This elite profile targets ~10k+ sourced words from opened pa.gov HTML and official PDFs. Non-blocking expansions later: full ACFR investment-section tables, complete 13F holdings commentary, a live Board-member HTML table if PSERS publishes one, and an official investment-strategy VideoObject if PSERS posts a durable embeddable briefing. No filler invented to pad word count.

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