Bill Text: MI SB0226 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Retirement; pension oversight; criteria for a retirement system to be subject to certain restrictions; modify. Amends sec. 12c of 1965 PA 314 (MCL 38.1132c).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-14 - Referred To Committee On Appropriations [SB0226 Detail]

Download: Michigan-2019-SB0226-Introduced.html

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SENATE BILL No. 226

 

 

March 14, 2019, Introduced by Senator SANTANA and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1965 PA 314, entitled

 

"Public employee retirement system investment act,"

 

by amending section 12c (MCL 38.1132c), as amended by 2014 PA 185.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 12c. (1) "Investment fiduciary" means a person other than

 

a participant directing the investment of the assets of his or her

 

individual account in a defined contribution plan who does any of

 

the following:

 

     (a) Exercises any discretionary authority or control in the

 

investment of a system's assets. Investment fiduciary under this

 

subdivision includes the state treasurer and his or her investment

 

personnel for the systems described in section 13(4).

 

     (b) Renders investment advice for a system for a fee or other

 

direct or indirect compensation.

 

     (2) "Invest" or "investment" means the utilization of money in

 

the expectation of future returns in the form of income or capital

 

gain. Investments initially purchased in accordance with this act

 

that subsequently do not qualify for purchase for any reason shall

 

be are considered to continue to meet the requirements of this act.

 

Investment includes a guarantee by an investment fiduciary but does

 

not include, as a sole investment, a pledge of the system's assets

 

as collateral to guarantee the repayment of obligations made by a

 

third party to a borrower.

 

     (3) "Investment grade" means graded in the top 4 major grades

 

as determined by 2 national rating services.

 

     (4) "Large sponsored system" means a system created and

 

established by a city that is subject to a plan for adjustment. and

 

that meets 1 or more of the following conditions:

 

     (a) The city has a population of more than 600,000.

 

     (b) The system has discharged at least $1,000,000,000.00 of

 

pension liabilities in bankruptcy.