HB-4289, As Passed House, March 18, 2015
March 4, 2015, Introduced by Rep. Yonker and referred to the Committee on Financial Liability Reform.
A bill to amend 1965 PA 314, entitled
"Public employee retirement system investment act,"
by amending section 13g (MCL 38.1133g), as added by 2014 PA 185.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 13g. (1) Subject to a plan for adjustment, each large
sponsored system shall establish an investment committee.
(2) The investment committee shall recommend to the governing
board
of the a large sponsored system investment management
decisions, including, but not limited to, all of the following:
(a) The development of investment goals and objectives,
investment assumptions, and performance measurement standards
consistent with the needs of the large sponsored system.
(b) The selection, monitoring, evaluation, and removal of
custodians, investment managers, or any investment service
providers.
(c) Asset allocation.
(d) Subject to a plan for adjustment, all calculations,
actuarial assumptions, or assessments used by an actuary,
including, but not limited to, those underlying the restoration of
pension benefits, funding levels, and amortization of the
restoration of pension benefits, and those underlying the
determination of annual funding levels and amortization of annual
funding levels, and recommended contributions to the large
sponsored system in accordance with applicable law.
(e) Performing or ordering asset liability valuation studies
for
the qualified large
sponsored system not less frequently
than
every 2 years.
(f) Review and approval, before final issuance of all annual
audits and actuarial and financial reports before finalization.
(g) Interpretation of the large sponsored system's governing
documents, applicable laws, plans of adjustment approved by United
States bankruptcy courts, and other financial determinations
affecting the large sponsored system's funding or benefit levels.
(h) Based on annual actuarial valuation reports and any other
projections or reports, as applicable from an actuary or other
professional advisors, the determination of the extent of
restoration of pension benefits all in conformance with a plan for
adjustment.
(3) The investment committee shall do all of the following:
(a) Select, set compensation for and terms of employment of,
and
evaluate the qualified large
sponsored system's chief financial
investment officer.
(b)
Notwithstanding section 20h(6), approve a qualified large
sponsored system's summary annual report created under section 13
before the summary annual report is made public.
(4) The investment committee shall submit its recommendation
under
subsection (2) to the board. The board shall have has not
more than 45 days from the date of the submission, or 10 business
days if the committee determines in good faith that emergency
action is required, to approve or disapprove the recommendation. If
the board does not act within 45 days or 10 days, as applicable,
the recommendation is considered approved by the board and the
chief
financial investment officer shall implement the
recommendation.
(5) If the board disapproves the investment committee's
recommendation within 45 days or 10 days under subsection (4), as
applicable,
the investment management decision shall must be
implemented under the plan for adjustment.
(6) As used in this section:
(a) "Board" means the governing board of a large sponsored
system.
(b)
"Chief financial investment
officer" means the chief
financial
investment officer of a qualified large sponsored system.
(c) "Investment committee" or "committee" means an investment
committee established under subsection (1).
(d) "Plan for adjustment" means a plan for the adjustment of
debts entered and approved by a federal bankruptcy court for a city
that has established a large sponsored system.