Facing an independent investigation into an undisclosed “informal allegations,” the chief investment officer at the State Employees' Retirement System will retire, effective Dec. 31.
The SERS board on Wednesday accepted the letter from Anthony Clark, who was on leave pending the investigation.
The board also moved to have its internal audit division identify outside experts to assess and advise the board how to proceed with regard to the allegations.
Meanwhile, investment returns through Sept. 30 totaled 8.7 percent, which puts SERS ahead of its 7.5 percent return assumption, board Chairman Nicholas Maiale said.
“With three weeks remaining, early year-end estimates look strong,” he said, as SERS operates by calendar year.
SERS has assets of about $26.5 billion and nearly 230,000 members.
Earlier this week, the Public School Employees’ Retirement System board certified an annual employer contribution rate of 21.4 percent for 2014-15, which begins on July 1, 2014. Members of the pension fund are expected to contribute an average of 7.46 percent of their salary to help fund their retirement benefits.
Without the rate caps established under Act 120 of 2010, the rate would have been 33.83 percent, according to PSERS. Total employer contributions are estimated at $2.9 billion.
The state reimburses school employers for not less than 50 percent of the employer contribution rate.
PSERS also reported a 2.9 percent return for the fiscal first quarter that ended Sept. 30. Like SERS, PSERS also assumes a 7.5 percent annual rate of return.
PSERS has assets of about $49.4 billion and more than 267,000 active school employees.
The two state retirement systems have unfunded liabilities that total more than $47 billion.