State employees’ pension system to be audited

The Pennsylvania auditor general said Monday that he will begin audits of the pension systems serving state and public school workers.

The State Employees’ Retirement System and Public School Employees’ Retirement System manage about $78 billion in assets for more than 850,000 workers and retirees and other members, according to the systems.

Auditor General Eugene DePasquale told reporters Monday that he is particularly interested in fees paid to outside investment managers.

The announcement of the audits came days after federal prosecutors announced charges against a former state treasurer, Barbara Hafer, and a businessman, Richard Ireland, in cases related to the management of public money.

In addition to an examination of the role of external investment advisers, Mr. DePasquale said the audits will focus on the forfeiture of pensions of employees convicted of certain crimes related to public office; oversight of investment operations; and the diversity of the SERS and PSERS investment portfolios.