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Pennsylvania House of Representatives
04/18/2024 08:23 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=22491
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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: January 25, 2017 12:25 PM
From: Representative Thomas R. Caltagirone
To: All House members
Subject: Limit high-risk venture capital investment to 2% of the total fund assets (pre Act 9 of 2001 standard).
 
In the near future, I plan to reintroduce HB 2174 from last session. This bill will limit SERS and PSERS ability to invest in high-risk venture capital investments to 2% of the book value of the total assets of the fund. This bill will simply go back to the standard that was in place prior to Act 9 of 2001. When the legislature and Governor Ridge enacted Act 9 of 2001 and lifted the cap, SERS and PSERS significantly increased investments in unproven high risk investments. In hindsight we can agree that they put too much public money at risk and the gamble failed.

This bill is necessary to limit such investment because the stakes are too high. We need to learn from our past mistakes and take steps to limit the risks being taken with our public pension funds. I believe this bill is a step in the right direction to stabilize our pension funds.

Please cosponsor this important legislation.


Introduced as HB1253