WSIB approves revisions to retirement CTF asset‑allocation policy after debate on private‑equity limits

The Washington State Investment Board voted Dec. 18 to approve revisions to the retirement CTF asset‑allocation policy, adopting updated year‑end projected targets and adding private credit as a discrete asset class.

Staff presenter Chris Haneck summarized the changes as reflecting long‑term targets from a strategic asset‑allocation study and said the revisions "include new references to private credit, which was added as an asset class as part of the recommendation." He noted that applying the long‑term ranges to near‑term targets would raise the upper private‑equity range to 32% in 2026 unless the board elected to cap it.

Treasurer Pellicciotti raised concerns that the policy, as drafted, "would increase exposure to private equity, starting next year" and asked whether staff would come forward earlier if allocations exceeded prior limits. Allison Lisonbee, the CEO, and staff said they would report and discuss any out‑of‑band allocations and that quarterly reporting and disclosure requirements would ensure transparency.

Board members debated implementation pace and the monitoring triggers that would prompt board review. Staff said the targets were not "hard and fast" and could be revisited, and committed to returning with trend information and adequate commentary in performance reports. After discussion the motion to approve the policy revisions was seconded and adopted by voice vote.

What was decided: the board approved the retirement CTF asset‑allocation policy revisions as proposed. The vote was by voice; staff committed to increased reporting if allocations approach or exceed prior norms.

Provenance: topic introduced by staff presentation (SEG 1380–1384) and concluded with board vote (SEG 1738–1742).