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General Assembly Raised Bill No. 867
January Session, 2021
LCO No. 3263
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)
AN ACT CONCERNING IN VESTMENT OF CERTAIN MUNICIPAL
FUNDS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (b) of section 7-450 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective from 2
passage): 3
(b) Notwithstanding the provisions of the general statutes or of any 4
special act, charter, special act charter, home-rule ordinance, local 5
ordinance or other local law, any municipality or subdivision thereof 6
may, by ordinance and amendment thereto, or with respect to a 7
municipality not having the authority to make ordinances, by resolution 8
adopted by a two-thirds vote of the members of its legislative body, (1) 9
establish one or more trusts, or determine to participate in a 10
multiemployer trust, to hold and invest the assets of such pension, 11
retirement or other postemployment health and life benefit system; (2) 12
provide for the management and investment of such system and any 13
such trust, including the establishment of a board or commission or the 14
designation of an existing board or commission for such purposes; or (3) 15 Raised Bill No. 867
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provide for the organization of and the manner of election or 16
appointment of the members of such board or commission. 17
Notwithstanding any limitations on the investment of municipal funds 18
set forth in section 7-400, funds held in any [such] trust described in 19
subdivision (1) of this subsection may be invested (A) in accordance 20
with the terms of the pension, retirement or other postemployment 21
health and life benefit plan, as such terms may be amended from time 22
to time; or (B) in any trust fund administered, held or invested by the 23
Treasurer pursuant to chapter 32 and for which the Treasurer may adopt 24
regulations, in accordance with chapter 54, to allow for the investment 25
of funds held in any trust described in said subdivision. The investment 26
and management of the assets of any [such] trust described in said 27
subdivision shall be in compliance with the prudent investor rule as set 28
forth in sections 45a-541 to 45a-541l, inclusive. 29
Sec. 2. Section 3-13c of the general statutes is repealed and the 30
following is substituted in lieu thereof (Effective from passage): 31
Trust funds as used in sections 3-13 to 3-13e, inclusive, and 3-31b shall 32
be construed to include Connecticut Municipal Employees' Retirement 33
Fund A, Connecticut Municipal Employees' Retirement Fund B, 34
Soldiers, Sailors and Marines Fund, Family and Medical Leave 35
Insurance Trust Fund, State's Attorneys' Retirement Fund, Teachers' 36
Annuity Fund, Teachers' Pension Fund, Teachers' Survivorship and 37
Dependency Fund, School Fund, State Employees Retirement Fund, the 38
Hospital Insurance Fund, Policemen and Firemen Survivor's Benefit 39
Fund, any trust fund described in subdivision (1) of subsection (b) of 40
section 7-450, as amended by this act, and all other trust funds 41
administered, held or invested by the State Treasurer. 42
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 7-450(b)
Sec. 2 from passage 3-13c
Raised Bill No. 867
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Statement of Purpose:
To allow for the investment of funds held in certain trusts established
by municipalities, or in which municipalities may participate, to be
invested in trust funds administered, held or invested by the Treasurer.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]