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PRINTER'S NO. 1865
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1460
Session of
2017
INTRODUCED BY B. MILLER, GREINER, WARD, MILLARD, MILNE, RADER,
LAWRENCE, WHEELAND, BLOOM, GROVE, ZIMMERMAN, MOUL, BARRAR,
KEEFER, MAHER, CALTAGIRONE, HANNA AND IRVIN, MAY 31, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 31, 2017
AN ACT
Amending Titles 24 (Education) and 71 (State Government) of the
Pennsylvania Consolidated Statutes, in administration and
miscellaneous provisions regarding administration of the
Public School Employees' Retirement Fund, further providing
for administrative duties of board; and, in administration,
funds, accounts and general provisions regarding
administration of the State Employees' Retirement Fund,
further providing for administrative duties of the board.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 8502(n) of Title 24 of the Pennsylvania
Consolidated Statutes is amended to read:
§ 8502. Administrative duties of board.
* * *
(n) Annual financial statement.--The following shall apply:
(1) The board shall [prepare]:
(i) Prepare and have published, on or before January
1 of each year, a financial statement as of the fiscal
year ending June 30 of the previous year showing the
condition of the fund and the various accounts,
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including, but not limited to, the board's accrual and
expenditure of directed commissions, and setting forth
such other facts, recommendations and data as may be of
use in the advancement of knowledge concerning annuities
and other benefits provided by this part. [The board
shall submit]
(ii) Include in the financial statement under
subparagraph (i) the performance of investments over the
most recent 1-, 3-, 5-, 10- and 20-year periods, the
performance of investments by asset class over each time
horizon both gross and net of fees and an itemized
listing of the fees paid to investment managers for the
applicable reporting years, separated by management and
performance fees, including performance, carried interest
and fees charged against assets for private equity and
other alternative investment managers, informed by the
practices recommended by the Institutional Limited
Partnership Association Fee Transparency Initiative.
(iii) Submit said financial statement to the
Governor and shall make copies available to the employers
for the use of the school employees and the public.
(2) As used in this subsection, the following words and
phrases shall have the meanings given to them in this
paragraph unless the context clearly indicates otherwise:
"Alternative investment." An investment in a private
equity fund, venture fund, hedge fund or absolute return
fund.
"Carried interest." Any share of profits from an
alternative investment vehicle that is distributed to a fund
manager, general partner or related party, including
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allocations of alternative investment vehicle profits
received by a fund manager in consideration of having waived
fees that the fund manager might otherwise have been entitled
to receive.
"Institutional Limited Partnership Association Fee
Transparency Initiative." An initiative created by the
Institutional Limited Partnership Association to establish
guidelines for reporting fees, expenses and compliance
disclosures regarding investments.
* * *
Section 2. Section 5902(m) of Title 71 is amended to read:
§ 5902. Administrative duties of the board.
* * *
(m) Annual financial statement.--The following shall apply:
(1) The board shall [prepare]:
(i) Prepare and have published, on or before July 1
of each year, a financial statement as of the calendar
year ending December 31 of the previous year showing the
condition of the fund and the various accounts,
including, but not limited to, the board's accrual and
expenditure of directed commissions, and setting forth
such other facts, recommendations, and data as may be of
use in the advancement of knowledge concerning annuities
and other benefits provided by this part. [The board
shall submit]
(ii) Include in the financial statement under
subparagraph (i) the performance of investments over the
most recent 1-, 3-, 5-, 10- and 20-year periods, the
performance of investments by asset class over each time
horizon both gross and net of fees and an itemized
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listing of the fees paid to investment managers for the
applicable reporting years, separated by management and
performance fees, including performance, carried interest
and fees charged against assets for private equity and
other alternative investment managers, informed by the
practices recommended by the Institutional Limited
Partnership Association Fee Transparency Initiative.
(iii) Submit said financial statement to the
Governor and shall file copies with the head of each
department for the use of the State employees and the
public.
(2) As used in this subsection, the following words and
phrases shall have the meanings given to them in this
paragraph unless the context clearly indicates otherwise:
"Alternative investment." An investment in a private
equity fund, venture fund, hedge fund or absolute return
fund.
"Carried interest." Any share of profits from an
alternative investment vehicle that is distributed to a fund
manager, general partner or related party, including
allocations of alternative investment vehicle profits
received by a fund manager in consideration of having waived
fees that the fund manager might otherwise have been entitled
to receive.
"Institutional Limited Partnership Association Fee
Transparency Initiative." An initiative created by the
Institutional Limited Partnership Association to establish
guidelines for reporting fees, expenses and compliance
disclosures regarding investments.
* * *
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Section 3. This act shall take effect in 60 days.
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