{"id":10223,"date":"2014-04-01T19:21:00","date_gmt":"2014-04-02T00:21:00","guid":{"rendered":"http:\/\/www.kevinbryant.com\/?p=10223"},"modified":"2014-04-01T19:21:00","modified_gmt":"2014-04-02T00:21:00","slug":"rsic-retirement-system-investment-commission-report","status":"publish","type":"post","link":"https:\/\/www.kevinbryant.com\/kbarchive\/rsic-retirement-system-investment-commission-report\/","title":{"rendered":"RSIC (retirement system investment commission) report"},"content":{"rendered":"

\"sc\"<\/a>On April 1st, our special Senate Finance Subcommittee (Bryant (ch), Lourie (ch), Jackson, Cleary) reported out our report. Click here to view the full report<\/a>, here’s the summary;
\nReport of the Special Subcommittee to Review the Investment of State Retirement Funds
\nSenators Bryant, Lourie (co-chairs), Jackson and Cleary
\nSenator Bryant Presentation:
\nTask
\nChairman Leatherman tasked the Special Subcommittee to review:
\n\uf0fc Inspector General’s Report.
\n\uf0fc Investment Management Fees.
\n\uf0fc Investment Diversification.
\n\uf0fc Securities Lending Agreement with the Bank of New York – Mellon.
\n\uf0fc Consider whether legislation was warranted to change the System.
\nProcess:
\n\uf0fc The Subcommittee met seven times from December 5th through March 4th.
\n\uf0fc The Subcommittee received over 12 hours of testimony.
\n\uf0fc The Subcommittee received numerous documents.
\n\uf0fc All documents and recordings of testimony are available for viewing on the Finance Committee location of the legislative website.
\nFindings:
\n\uf0fc The Inspector General’s Report is an accurate roadmap for understanding the history and current status of the Retirement System Investment Commission and its interaction with the State Treasurer. The attached Appendix lists the Inspector General’s findings from his investigation.
\n\uf0fc Communication between the Commission and the State Treasurer is dysfunctional.
\n\uf0fc Fiduciary roles are currently muddled and need to be streamlined and clarified.
\n\uf0fc Based on testimony received, accusations of criminality at the Investment Commission by the State Treasurer are unfounded.<\/p>\n

Senator Lourie Presentation:
\n\uf0fc Operational infrastructure to ensure due diligence was sorely lacking during the nascent stages of the Investment Commission. In recent years, operational infrastructure has markedly improved and continues to improve as the Investment Commission is authorized more resources.
\n\uf0fc The investment strategy of the Commission is purposely weighted towards alternative investments to minimize risk. The Subcommittee is somewhat uncomfortable with this approach but recognizes the legitimacy of the strategy. By the nature of alternative investment structures, fees related to those investments are higher than traditional bond\/stock portfolios. Further, the Investment Commission’s disclosure of fees may be the most transparent among its peer group, so any comparison of fees with peers should be carefully reviewed.
\n\uf0fc The State Treasurer’s settlement with the Bank of New York Mellon over the administration of a securities lending contract was procedurally acceptable but managerially perplexing. The State Treasurer’s responsibility to serve as custodial banker for the Investment Commission is organizationally misaligned.
\n\uf0fc The Special Subcommittee recommends that its assignment continue so that the Funston fiduciary audit be received, reviewed and translated into legislation for consideration.
\n\uf0fc The Special Subcommittee recommends the immediate consideration of legislation to add members to the Investment Commission. These new members would be chosen from among the constituent groups the Investment Commission is designed to serve and they would hold qualifications. This proposed change should help reduce the fear these groups of public servants are experiencing from the acrimony exhibited at Commission meetings and in the media.<\/p>\n","protected":false},"excerpt":{"rendered":"

On April 1st, our special Senate Finance Subcommittee (Bryant (ch), Lourie (ch), Jackson, Cleary) reported out our report. Click here to view the full report, here’s the summary; Report of the Special Subcommittee to Review the Investment of State Retirement Funds Senators Bryant, Lourie (co-chairs), Jackson and Cleary Senator Bryant Presentation: Task Chairman Leatherman tasked […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":{"0":"post-10223","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2gEQ0-2ET","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/posts\/10223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/comments?post=10223"}],"version-history":[{"count":4,"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/posts\/10223\/revisions"}],"predecessor-version":[{"id":10228,"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/posts\/10223\/revisions\/10228"}],"wp:attachment":[{"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/media?parent=10223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/categories?post=10223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kevinbryant.com\/kbarchive\/wp-json\/wp\/v2\/tags?post=10223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}