For Immediate Release
For More Information Contact:
Public School Employees' Retirement System
Public School Employees' Retirement System Board of Trustees Releases Internal Investigation Report
No evidence of criminal conduct
HARRISBURG, PA – The Board of Trustees of the Public School Employees' Retirement System today authorized the public release of the complete results of the nearly year-long internal investigation into the shared risk calculation error that occurred in late 2020. The internal investigation, conducted by the law firm Womble Bond Dickinson, also included a review of Harrisburg real estate purchases by the System.
After receiving the report during today's meeting, the Board has released the Womble Bond report, including all appendices on the PSERS website, with exhibits to follow.
Womble Bond Dickinson found no evidence of criminal conduct.
"Today marked an important milestone in the internal investigation and provided an opportunity at PSERS for both the Board and staff," said Board Chairman Christopher Santa Maria. "We are committed to learning from this process and will continue our best efforts to serve our members."
In March 2021, the PSERS Board delegated authority to the Audit/Compliance Committee to oversee an internal investigation of the circumstances surrounding an error in the reporting of investment performance results used by the Board in its December 3, 2020, certification of member contribution rates and shared risk calculation. The investigation also included the purchase of certain Harrisburg real estate properties by the System. The Audit/Compliance Committee engaged Womble Bond Dickinson to conduct the investigation.
"I am thankful for the efforts of the PSERS Board and Audit/Compliance Committee over the past year," said Audit Committee Chairman Rep. Frank Ryan. "It was our goal to have an independent and fair investigation and I believe we achieved that. I am also pleased that the board has chosen to make the entire results of the investigation available to the public."
About Womble Bond Dickinson
Womble Bond Dickinson is a transatlantic law firm, having served clients in the US for more than 140 years. The firm's American predecessor, Womble Carlyle Sandridge & Rice LLP, was established in Winston-Salem, N.C. in 1876. Today, Womble Bond Dickinson includes more than 1,000 attorneys in 26 US and UK locations, representing 250+ publicly traded companies. Womble Bond Dickinson formed in 2017 as a result of a merger between UK-based Bond Dickinson LLP and US-based Womble Carlyle Sandridge & Rice, LLP. The combination followed a strategic alliance announcement made in 2016.
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, 2021, PSERS had total net assets of $72.5 billion and a membership of about 248,000 active, 243,000 retired school employees and 27,000 vested inactive members.
Link to report: https://www.psers.pa.gov/About/Board/Documents/Reports/2022.02.01%20-%20Final%20Womble%20Bond%20Report%20with%20Exhibits.PDF