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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session


Posted: May 26, 2016 04:23 PM
From: Representative Thomas R. Caltagirone
To: All House members
Subject: Limit pension fund investments in high-risk venture capital to 2% of the total fund assets (pre Act 9 of 2001 standard).
In the near future, I plan to introduce a bill to 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.

The language of the legislation is attached for your review. Please cosponsor this important legislation.

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Introduced as HB2174