An Act Requiring Investments by the Maine Public Employees Retirement System To Be Well-diversified
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §17108, sub-§2, ¶A, as amended by PL 2003, c. 618, Pt. B, §1 and affected by §20, is further amended to read:
A. The fiduciary or registered investment advisor shall invest and reinvest the funds of the retirement system in accordance with the standards defined in Title 18-B, sections 802 to 807 and chapter 9. The investment and reinvestment are subject to periodic review by the board and the investment and reinvestment of funds may not be made in narrowly tailored asset classes but must comprise well-diversified asset classes that will generate the maximum return.
Sec. 2. 5 MRSA §17153, sub-§3, as amended by PL 2003, c. 618, Pt. B, §2 and affected by §20, is further amended to read:
3. Investment of funds. The board may cause the funds created by this Part to be invested and reinvested in accordance with the standards defined in Title 18-B, sections 802 to 807 and chapter 9, subject to periodic approval of the investment program by the board. The board shall ensure that the investment and reinvestment of funds is not made in narrowly tailored asset classes but comprises investment and reinvestment of funds in well-diversified asset classes that will generate the maximum return.
SUMMARY
This bill requires that the Board of Trustees of the Maine Public Employees Retirement System invest and reinvest retirement system funds in well-diversified asset classes that will generate the maximum return and prohibits investment in narrowly tailored asset classes.