State teachers’ retirement: investment managers and investment advisers: contracts.
If passed, AB 2510 will facilitate a competitive bidding process for hiring qualified investment managers and advisers, thereby potentially improving the financial management of retirement funds. By broadening the scope of contracts allowed about investment planning, the bill aims to align the management of STRS' investments with best practices in the financial sector. This could lead to better-funded retirement plans for teachers in California, reflecting a responsible approach to pension funding and management.
Assembly Bill 2510, introduced by Assembly Member Cooley, seeks to amend Section 22352 of the Education Code concerning the State Teachers Retirement System (STRS). The bill explicitly empowers the Teachers Retirement Board to contract not only with investment managers but also with investment advisers when the board finds that necessary investment expertise is unavailable within current civil service classifications. This provision aims to offer more flexibility in managing investment resources for the teachers' retirement system, ensuring that the board can utilize external expertise to enhance portfolio management.
While the bill offers clear advantages in terms of hiring qualified professionals, it may raise concerns regarding oversight and the inclusion of private entities in managing public funds. Critics might argue that allowing external investment advisers increases the risk of mismanagement or conflicts of interest. The discussions around AB 2510 could highlight divided opinions within the legislature on the balance between leveraging external expertise and maintaining robust oversight of public employee retirement funds.