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Management of fund and accounts - 71 Pa. Cons. Stat. § 5931

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                               SUBCHAPTER C
                     STATE EMPLOYEES' RETIREMENT FUND
                               AND ACCOUNTS

     Sec.
     5931.  Management of fund and accounts.
     5932.  State Employees' Retirement Fund.
     5933.  Members' savings account.
     5934.  State accumulation account.
     5935.  Annuity reserve account.
     5936.  State Police benefit account.
     5937.  Enforcement officers' benefit account.
     5938.  Supplemental annuity account.
     5939.  Interest reserve account.
     5940.  Northern Ireland-related investments.
     5941.  Benefits completion plan.
     § 5931.  Management of fund and accounts.
        (a)  Control and management of fund.--The members of the
     board shall be the trustees of the fund. Regardless of any other
     provision of law governing the investments of funds under the
     control of an administrative board of the State government, the
     trustees shall have exclusive control and management of the said
     fund and full power to invest the same in accordance with the
     provisions of this section, subject, however, to the exercise of
     that degree of judgment, skill and care under the circumstances
     then prevailing which persons of prudence, discretion and
     intelligence, who are familiar with such matters, exercise in
     the management of their own affairs not in regard to
     speculation, but in regard to the permanent disposition of the
     funds, considering the probable income to be derived therefrom
     as well as the probable safety of their capital. The trustees
     shall have the power to hold, purchase, sell, lend, assign,
     transfer or dispose of any of the securities and investments in
     which any of the moneys in the fund shall have been invested as
     well as of the proceeds of said investments, including any
     directed commissions which have accrued to the benefit of the
     fund as a consequence of the investments, and of any moneys
     belonging to said fund, subject in every case to meeting the
     standard of prudence set forth in this subsection.
        (b)  Crediting of interest.--The board, annually, shall allow
     the required interest on the mean amount for the preceding year
     to the credit of each of the accounts. The amount so allowed
     shall be credited thereto by the board and transferred from the
     interest reserve account.
        (c)  Custodian of fund.--The State Treasurer shall be the
     custodian of the fund.
        (d)  Payments from fund.--All payments from the fund shall be
     made by the State Treasurer in accordance with requisitions
     signed by the secretary of the board, or his designee, and
     ratified by resolution of the board.
        (e)  Fiduciary status of board.--The members of the board,
     employees of the board and agents thereof shall stand in a
     fiduciary relationship to the members of the system regarding
     the investments and disbursements of any of the moneys of the
     fund and shall not profit either directly or indirectly with
     respect thereto. The board may, when possible and consistent
     with its fiduciary duties imposed by this subsection or other
     law, including its obligation to invest and manage the fund for
     the exclusive benefit of the members of the system, consider
     whether an investment in any project or business enhances and
     promotes the general welfare of this Commonwealth and its
     citizens, including, but not limited to, investments that
     increase and enhance the employment of Commonwealth residents,
     encourage the construction and retention of adequate housing and
     stimulate further investment and economic activity in this
     Commonwealth. The board shall, through the Governor, submit to
     the General Assembly annually, at the same time the board
     submits its budget covering administrative expenses, a report
     identifying the nature and amount of all existing investments
     made pursuant to this subsection.
        (f)  Name for transacting business.--By the name of "The
     State Employees' Retirement System" or "The State Employes'
     Retirement System" all of the business of the system shall be
     transacted, its fund invested, all requisitions for money drawn
     and payments made, and all of its cash and securities and other
     property shall be held, except that, any other law to the
     contrary notwithstanding, the board may establish a nominee
     registration procedure for the purpose of registering securities
     in order to facilitate the purchase, sale or other disposition
     of securities pursuant to the provisions of this law.
        (g)  Deposits in banks and trust companies.--For the purpose
     of meeting disbursements for annuities and other payments in
     excess of the receipts, there shall be kept available by the
     State Treasurer an amount, not exceeding 10% of the total amount
     in the fund, on deposit in any bank or banks in this
     Commonwealth organized under the laws thereof or under the laws
     of the United States or with any trust company or companies
     incorporated by any law of this Commonwealth, provided any of
     such banks or trust companies shall furnish adequate security
     for said deposit, and provided that the sum so deposited in any
     one bank or trust company shall not exceed 25% of the paid-up
     capital and surplus of said bank or trust company.
        (h)  Venture capital, private placement and alternative
     investments.--The board in its prudent discretion may make any
     venture capital investment, private placement investment or
     other alternative investment of any kind, structure or manner
     which meets the standard of prudence set forth in subsection
     (a).
        (i)  Vehicles for authorized investments.--The board in its
     prudent discretion may make any investments which meet the
     standard of prudence set forth in subsection (a) by acquiring
     any type of interest in a business organization existing under
     the laws of any jurisdiction, provided that, in any such case,
     the liability of the State Employees' Retirement Fund shall be
     limited to the amount of its investment.
        (j)  Legislative declaration concerning certain authorized
     investments.--The General Assembly finds and declares that
     authorized investments of the fund made by or on behalf of the
     board under this section whereby the board becomes a joint owner
     or stockholder in any company, corporation, association or other
     lawful business organization are outside the scope of the
     original intent of and therefore do not violate the prohibition
     set forth in section 8 of Article VIII of the Constitution of
     Pennsylvania.
     (Oct. 7, 1975, P.L.348, No.101, eff. imd.; Mar. 4, 1982,
     P.L.141, No.45, eff. imd.; June 29, 1984, P.L.450, No.95, eff.
     imd.; Aug. 5, 1991, P.L.183, No.23, eff. imd.; Apr. 29, 1994,
     P.L.159, No.29, eff. imd.; Dec. 20, 1995, P.L.689, No.77, eff.
     imd.; May 17, 2001, P.L.26, No.9, eff. imd.)

        2001 Amendment.  Act 9 amended subsecs. (h), (i) and (j). See
     section 24 of Act 9 in the appendix to this title for special
     provisions relating to authorized investments.
        1994 Amendment.  See section 14 of Act 29 in the appendix to
     this title for special provisions relating to authorized
     investments of the State Employees' Retirement Board as
     described in subsec. (i).
        Cross References.  Section 5931 is referred to in section
     5102 of this title; section 5611 of Title 53 (Municipalities
     Generally).

Last modified: November 27, 2007