Seattle City Employees' Retirement System

The Seattle City Employees’ Retirement System (SCERS) is the defined benefit pension plan serving employees of the City of Seattle, Washington. With approximately $4 billion in assets under management, SCERS provides retirement benefits for city workers, including active members, retirees, and their beneficiaries.

Investment Strategy

SCERS maintains a diversified investment portfolio designed to achieve its long-term actuarial return target. The asset allocation includes public equity, fixed income, real estate, and alternative investments. The Board of Administration establishes the investment policy and strategic allocation framework, informed by periodic asset-liability studies.

Public equity allocations include domestic and international stocks, managed through a combination of active and passive strategies. Fixed income provides portfolio stability through government bonds, investment-grade corporate credit, and other income-generating instruments. SCERS has built an alternatives program that enhances portfolio diversification and provides exposure to return streams less correlated with public markets.

The system’s investment philosophy emphasizes long-term perspective, broad diversification, and cost-effective implementation. SCERS has also incorporated responsible investment practices into its framework, reflecting the values of the City of Seattle.

Private Markets Approach

SCERS invests in private equity through limited partnership fund commitments, with exposure to buyout, growth equity, and diversified strategies. Given the plan’s size, SCERS is thoughtful about commitment sizing and focuses on partnerships with managers who provide institutional-quality exposure at appropriate scale.

Real estate investments provide income, inflation protection, and diversification through commingled fund vehicles across core and value-add strategies. The system evaluates real estate for its contribution to overall portfolio stability and return.

Fund managers approaching SCERS should understand the plan’s emphasis on responsible investing and cost-effective access. The due diligence process evaluates investment strategy, performance track record, team capabilities, ESG practices, and fee structures. The Board of Administration reviews and approves new commitments based on recommendations from staff and external investment consultants.