Oklahoma Senate Bill SB1062

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

Public finance; directing State Treasurer to create an investment pool; authorizing certain funds to invest in pool; authorizing purchase of and investment in debts of retirement systems. Effective date.

Impact

The enactment of SB1062 is expected to influence the financial strategies of the state's public retirement funds significantly. By establishing a structured investment policy for these funds, the bill aims to enhance their financial stability and growth through prudent investments in secure debt obligations. It places a cap of three years on the maturity of the investments, ensuring a quick turnover and liquidity in the investment pool, which would benefit the retirement systems involved by potentially increasing their overall returns and sustainability.

Summary

Senate Bill 1062 mandates the creation of an investment pool by the State Treasurer. This pool is intended for the investment of various public funds, particularly those related to public retirement systems within Oklahoma. The bill outlines that funds authorized for investment will be sourced from several public entities, including the Oklahoma Employees Insurance and Benefits Board and the Workers' Compensation Commission. The State Treasurer is responsible for managing these investments, specifically in bonds and similar obligations that pertain to several key retirement systems.

Contention

While the bill is largely supported for promoting better management of state funds, it also raises some points of contention, particularly regarding the potential risks in public fund investments. Critics may argue about the fiduciary responsibilities of the State Treasurer as well as the implications of entrusting substantial public finances in a more centralized investment approach. The necessity for maintaining a careful balance between risk and return remains a critical consideration for lawmakers and stakeholders in public finance.