Texas Senate Bill SB1344

Texas 2017 - 85th Regular

Caption

Relating to reporting on investments by certain public retirement systems.

Impact

The bill establishes a mandate for public retirement systems to conduct evaluations of their investment practices and performance at least once every four years. This evaluation must be performed by an independent firm with expertise in institutional investment. The requirement for such evaluations is expected to increase accountability and performance oversight, thereby potentially leading to better investment decisions that could benefit the retirement systems' financial health and the members relying on these funds for their retirement.

Summary

SB1344 aims to enhance the reporting requirements for investments made by specific public retirement systems in Texas. The legislation amends existing sections of the Government Code to ensure that public retirement systems report investment income in the fiscal year it is earned rather than deferring it to later reporting periods. This change is intended to improve the accuracy of reporting and ensure that stakeholders have timely information about income generated from investments.

Contention

One notable aspect of SB1344 is its provision that requires public retirement systems to report all commissions and fees incurred during the management of system assets. This requirement could lead to increased scrutiny over how public funds are managed and spent. While proponents argue that such transparency is essential for accountability, opponents may raise concerns about the administrative burden this places on retirement systems, particularly smaller entities that may lack the resources to comply with detailed reporting and evaluation processes.