H1460B2595A04830 BIL:NLG 11/21/17 #90 A04830
AMENDMENTS TO HOUSE BILL NO. 1460
Sponsor: REPRESENTATIVE RYAN
Printer's No. 2595
Amend Bill, page 1, lines 11 and 12, by striking out all of
said lines and inserting
Section 1. Section 8502 of Title 24 of the Pennsylvania
Consolidated Statutes is amended by adding a subsection to read:
Amend Bill, page 1, lines 15 through 19; page 2, lines 1
through 24; by striking out all of said lines on said pages and
inserting
(s) Additional reporting requirements.--The following shall
apply:
(1) In addition to the requirements set forth in this
section, the board shall prepare and have published on its
publicly accessible Internet website, and electronically
submit copies to all members of the General Assembly, the
following information within six months after the end of the
system's fiscal year:
(i) The performance of all investments over the most
recent 1-, 3-, 5-, 10- and 20-year periods.
(ii) The performance of all investments by asset
class over each time horizon, both gross and net of fees
being reported commencing prospectively from the
effective date of this subsection and retroactively for
the 5-year period and, to the extent the information is
available, retroactively for the 10-year period.
(iii) An itemized listing of the fees paid to all
investment managers for the applicable reporting years,
separated by base management fee and profit share,
including performance fees, carried interest and
incentive fees, including the basis of valuation, and
informed by the best practices as recommended by
recognized industry standards, including, but not limited
to, the Institutional Limited Partnership Association Fee
Transparency Initiative. The board shall disclose in the
report which industry standards were used and whether any
changes to industry standards have been made.
(iv) Management letters prepared by:
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(A) any independent certified public accounting
firm authorized to conduct an audit of the system or
the plan by the General Assembly;
(B) the Office of the Auditor General;
(C) auditors hired by the board and referenced
in the board's financial statements filed in
accordance with subsection (n); and
(D) an independent certified public accounting
firm specified in subsection (o).
Amend Bill, page 2, lines 28 through 30, by striking out all
of said lines
Amend Bill, page 3, line 14, by striking out "5902(m)" and
inserting
5902
Amend Bill, page 3, line 14, by inserting after "amended"
by adding a subsection
Amend Bill, page 3, lines 17 through 30; page 4, lines 1
through 16; by striking out all of said lines on said pages and
inserting
(r) Additional reporting requirements.--The following shall
apply:
(1) In addition to the requirements set forth in this
section, the board shall prepare and have published on its
publicly accessible Internet website, and electronically
submit copies to all members of the General Assembly, the
following information within six months after the end of the
system's calendar year:
(i) The performance of all investments over the most
recent 1-, 3-, 5-, 10- and 20-year periods.
(ii) The performance of all investments by asset
class over each time horizon, both gross and net of fees
being reported commencing prospectively from the
effective date of this subsection and retroactively for
the 5-year period and, to the extent the information is
available, retroactively for the 10-year period.
(iii) An itemized listing of the fees paid to all
investment managers for the applicable reporting years,
separated by base management fee and profit share,
including performance fees, carried interest and
incentive fees, including the basis of valuation, and
informed by the best practices as recommended by
recognized industry standards, including, but not limited
to, the Institutional Limited Partnership Association Fee
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Transparency Initiative. The board shall disclose in the
report which industry standards were used and whether any
changes to industry standards have been made.
(iv) Management letters prepared by:
(A) any independent certified public accounting
firm authorized to conduct an audit of the system or
the plan by the General Assembly;
(B) the Office of the Auditor General;
(C) auditors hired by the board and referenced
in the board's financial statements filed in
accordance with subsection (m); and
(D) an independent certified public accounting
firm specified in subsection (n).
Amend Bill, page 4, lines 20 through 22, by striking out all
of said lines
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