Virginia House Bill HB162

Virginia 2024 Regular Session

• Introduced: 1/2/24
• Refer: 1/2/24

Caption

Retirement systems; financial reports, annual disclosures.

Impact

By standardizing the financial reporting and disclosure requirements for retirement systems, HB162 seeks to improve accountability and clarity regarding the management of public funds. This change is particularly significant as it relates to the oversight of retirement systems that serve public employees, ensuring that beneficiaries have access to comprehensive information regarding the financial health and operational practices of the systems managing their retirement benefits.

Summary

House Bill 162 aims to amend the Code of Virginia to enhance the financial reporting requirements for retirement systems. The bill mandates that every retirement system publish an annual report in accordance with standards set by the Governmental Accounting Standards Board (GASB). An important aspect of this legislation is the requirement for the annual report to disclose the selection process for third-party fund managers, advisers, or consultants involved with the retirement system, thus promoting transparency in financial management.

Contention

While the bill appears to be a step towards better governance for retirement systems, there may be points of contention regarding the implementation of these reporting standards. Concerns may arise about the capacity of different retirement systems to comply with the new requirements, particularly smaller or under-resourced systems. Some stakeholders might argue that the additional reporting demands could create administrative burdens which outweigh the intended benefits of increased transparency.