Limit pension fund investments in high-risk venture capital to 2% of the total fund assets (pre Act 9 of 2001 standard).
May 26, 2016 04:23 PM to All House Members
Circulated By
Representative Thomas Caltagirone
D House District 127
Memo
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.
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.
Legislation
Document - Introduced as HB 2174
Last updated on June 16, 2016 01:59 PM
Limit pension fund investments in high-risk venture capital to 2% of the total fund assets (pre Act 9 of 2001 standard).
May 26, 2016 04:23 PM to All House Members
Circulated By
CALTAGIRONE
Memo
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.
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.
Document
Introduced as HB 2174
Last Updated
June 16, 2016 01:59 PM
Generated 05/14/2025 01:30 PM