General Assembly Raised Bill No. 1557 proposes significant reforms to the governance and oversight of the state's pension funds by establishing an Investment Board that will replace the existing Investment Advisory Council. Key changes include the repeal of current statutes regarding the appointment of investment personnel, allowing the Investment Board to appoint a chief investment officer and other investment-related staff, with their compensation determined by the Board rather than the Treasurer. The bill also mandates that the chief investment officer will provide investment strategy advice to the Board. Additionally, the Investment Advisory Council will be formed with appointed members, including public members with investment experience and union representatives, who will have specific guidelines for membership and responsibilities.

The bill further modifies the investment policy development process, transferring the responsibility for recommending and adopting the investment policy statement from the Treasurer to the Investment Board, which will now directly adopt the statement with a majority vote. It also requires the Board to provide regular performance reports to the public and conduct annual examinations of state security investments. The legislation clarifies the definition of "public official" to include members of the Investment Board and introduces new regulations to prevent conflicts of interest. Overall, Raised Bill No. 1557 aims to enhance transparency, accountability, and ethical standards in the management of state investments while streamlining the governance process.

Statutes affected:
Raised Bill: 3-12a, 3-13a, 3-13b, 3-39b, 3-13i