TO:             All Retirement Boards

FROM:       Joseph E. Connarton, Executive Director

RE:             Draft Investment Regulations

DATE:        March 4, 2011

The Public Employee Retirement Commission (PERAC) has commenced the process for the promulgation of revised Investment Regulations governing the recordkeeping, procurement, and investment activities of the retirement boards.  A copy of the draft regulations is available at the PERAC Web Site

Initial submissions have been made to Administration & Finance as well as other entities which must receive a copy of proposed regulations under the statute.  However, it must be stressed that the draft regulations are by no means final and under the Commission’s process; public hearings will be scheduled and public comments received during the next several months.  At the conclusion of that period the Commission will revisit the draft and make changes in light of the comments received prior to proceeding further.

The Commission is attempting to incorporate into regulation guidelines adopted over the last 12 years such as Hedge Fund Guidelines, Placement Agent Policy, Mandate Modification and Use of Futures and Options.  In addition, we are updating our regulatory approach in light of changes to the market place that have taken place over the last 12 years and delineated procurement requirements for solicitation of services by retirement boards.  The proposal also eliminates outdated regulations.

We look forward to testimony from interested parties in writing or directly at the upcoming hearings.

If you have questions, please contact me, or Deputy Executive Director Joseph Martin.