Relative to investment consulting services in the New Hampshire retirement system.
Impact
The implications of HB 1421 are substantial for the state’s retirement system, as it introduces a structured methodology for assessing investment consultants. While the bill does not impose immediate costs on the state budget, it is projected to incur indeterminate increases in expenditures in the coming years due to the additional hiring of consultancy. The New Hampshire Retirement System estimates an added expenditure of approximately $650,000 per fiscal year for consulting services, although this might represent a negligible increase in the system's overall unfunded actuarial accrued liability.
Summary
House Bill 1421, also known as the Investment Consulting Services Bill, focuses on enhancing the operational efficiency of the New Hampshire Retirement System by mandating the board of trustees to contract with two investment consulting firms. The aim is to ensure both the oversight of investment strategies and performance evaluations, thereby safeguarding the financial health of retirement funds managed under the system. This bill seeks to create a transparent and evaluative approach to selecting investment consultants, where evaluations are conducted at least every four years and the better-performing firm is retained.
Sentiment
The sentiment surrounding HB 1421 has been largely pragmatic, with supporters recognizing the importance of professional investment advice as essential for preserving retirement benefits. Proponents argue that employing two firms facilitates better risk management and investment strategies within the retirement system. However, some stakeholders express concerns over potential increased management fees and limitations on investment opportunities due to the introduction of multiple consulting voices on project decisions.
Contention
A notable point of contention in discussions surrounding HB 1421 involves the potential financial impact of hiring two separate consultants, which some criticize as unnecessary duplication of services. Detractors question whether this approach will yield significant benefits compared to existing practices, suggesting that the additional costs may not provide proportional advantages. This debate highlights the tension between enhancing oversight through diversified consultancy services and controlling expenditure within the retirement system.
Relative to including education in the United States Constitution, the Bill of Rights, and the New Hampshire constitution for New Hampshire law enforcement.