LANSING, Mich. – Gov. Rick Snyder today signed legislation to modernize the Public Employee Retirement System Act.
Senate Bill 797, sponsored by state Sen. Mark Jansen, allows pension systems to take advantage of more diverse investment options like global equities and real estate that maximize return while minimizing risks. It also requires public retirement system board members to provide more complete records of monetary transactions to better measure performance.
“This ensures better service to retirees by creating stronger investment platforms as well as more transparency to measure performance across public systems,” Snyder said.
Public pension systems will no longer be precluded from investing in certain investment baskets, notably private equity and real estate, to maximize returns and limit risk. Further, uniform methods of reporting across public systems now are provided so retirees and members of the systems can accurately measure performance. Provisions now are included to prevent incidences of abuse related to travel and other expenses to ensure ethical behavior of pension board members.
The bill is now Public Act 347 of 2012.
Visit www.legislature.mi.gov for more information on the bill.