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, thereby removing the Treasurer's sole authority over these appointments. The bill mandates that the Investment Board will oversee investment strategies and compensation, with the chief investment officer serving under its direction. Additionally, the bill creates an Investment Advisory Council composed of appointed members with investment experience, including representatives from teachers' and state employees' unions, and outlines their responsibilities and meeting requirements.

The bill also modifies the investment authority of the Treasurer, requiring that any state funds invested must benefit the General Fund unless otherwise specified. It introduces new provisions for transparency, such as requiring monthly and quarterly performance reports to the public and an annual independent review of investment performance by a private advisory firm. The bill emphasizes ethical considerations in investment practices, particularly regarding divestment from companies operating in Iran and Sudan, and mandates that contracts for investment services adhere to an investment policy statement reviewed by the Investment Board. Overall, Raised Bill No. 1557 aims to enhance accountability, transparency, and oversight in the management of state investments, with an effective date set for July 1, 2027.

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