The pension fund has exposure to FTX through three venture capital investments.
The plan will fund the new manager by selling off current fixed-income investments.
The plan made a hire in a manager-of-managers search launched in June.
The plan will also target more $720 million to alternative funds in 2023.
The commitments were made with two existing managers.
The plan will seek board approval to terminate a high-yield fixed-income manager and an emerging markets equity manager.
The plan may conduct a search to replace its current underperforming hedge fund-of-funds.
The plan is set to commit $20 million annual over the next five years.
The plan is set to commit up to $850 million to private equity next year.
The new firm will manage approximately more than half of the plan’s assets.