Pension system officials disclose federal probe

Officials atop Pennsylvania’s largest public pension system have received subpoenas from federal investigators, although the $64 billion Public School Employees’ Retirement System has yet to publicly discuss the nature or scope of the newly disclosed inquiry.

In addition to giving few details, pension system officials and board members — including state lawmakers, two members of Gov. Tom Wolf’s Cabinet and state Treasurer Stacy Garrity — have declined to answer questions publicly about what information federal investigators are seeking.

Garrity told lawmakers at a Senate Appropriations Committee hearing Tuesday that “federal subpoenas have been served on several PSERS management officials.”

She did not say what the subpoenas are seeking or answer follow-up questions to her office. The pension system also did not answer questions about Garrity’s statements and the nature of the subpoenas.

A spokesperson for the U.S. attorney’s office in Philadelphia declined comment, saying the office can neither confirm nor deny the existence of an investigation of the system.

The system’s board, late Tuesday night, approved a one-sentence resolution after a roughly five-hour, largely closed-door meeting to hire a law firm to represent its members “in matters relating to a federal investigation” and any related issues.

The resolution was posted to the system’s website.