Texas House Bill HB1887

Texas 2019 - 86th Regular

Caption

Relating to the evaluation and reporting of investment practices and performance of certain public retirement systems.

Impact

The legislation significantly impacts public retirement systems with assets exceeding certain thresholds by instituting a framework for regular evaluations and performance reporting. Public retirement systems with total assets of $100 million or more must conduct evaluations every three years, while those with assets between $30 million and $100 million are required to evaluate every six years. This structured approach aims to enhance transparency and accountability within retirement systems and improve overall asset management efficiency.

Summary

House Bill 1887 relates to the evaluation and reporting of investment practices and performance of certain public retirement systems in Texas. The bill mandates that public retirement systems select an independent firm with expertise in evaluating institutional investment practices to conduct evaluations of their investment performance and practices. This requirement aims to ensure that retirement systems adhere to appropriate standards and policies and continuously improve their investment strategies.

Contention

Some potential points of contention surrounding HB 1887 may arise from the implementation burdens it places on smaller public retirement systems that may lack the resources to comply with the evaluation requirements. Additionally, the necessity to hire independent firms could lead to increased operational costs. Critics may argue that the bill does not address the specific needs of individual retirement systems and question the effectiveness of a one-size-fits-all evaluation standard. Nonetheless, proponents contend that such measures are essential for protecting retirees' investments and ensuring sound financial management within state-funded retirement systems.