Mississippi Senate Bill SB2394

Mississippi 2024 Regular Session

• Introduced: 2/14/24
• Refer: 2/14/24
• Failed: 3/5/24

Caption

PERS; require to engage CEFEX-certified and affiliated investment firm for fiduciary assessment of funds and practices.

Impact

The implementation of SB2394 is likely to bolster the financial integrity of the state's public employees' retirement system. By engaging a third-party firm with CEFEX certification, the board reinforces its commitment to fiduciary standards that safeguard the assets of the retirement fund. This action may lead to improved investment strategies and practices that better serve the retirement needs of public employees across Mississippi.

Summary

Senate Bill 2394 mandates that the Board of Trustees of the Public Employees' Retirement System of Mississippi engage a CEFEX-certified investment firm during the 2024 calendar year to conduct a fiduciary assessment of the system's funds and practices. This initiative seeks to enhance the oversight and management of the retirement system’s assets, ensuring that they align with best practices in fiduciary governance. The firm is expected to provide a comprehensive report that will be submitted to each member of the legislature by January 30, 2025, which aims to ensure accountability and transparency in managing public retirement funds.

Contention

Though the bill has the intention of promoting good governance, there are potential points of contention regarding the cost of hiring an external investment firm, which could be a source of debate among legislators. Some may argue that existing resources within the board could be utilized to conduct the assessment, while others may see it as a necessary expenditure for improving fund management. Additionally, the requirement to bring the existing law under Section 25-11-119 forward for possible amendment suggests that discussions about the legislative framework surrounding public retirement may be ongoing and may need further scrutiny.