Legislation Would Create Private Company to Manage Investments for Public Retirement Systems

As we have mentioned in earlier newsletters and on our website, we have been expecting legislation to be introduced this year to create a private state investment company. 

SB 1050 was introduced by Senator Jason Crowell on Monday, March 1, to create the Missouri Public Trust Company. This company is authorized to manage the investment of the trust assets of the Missouri State Employees Retirement System (MOSERS) and the Missouri Department of Transportation and Highway Patrol Employees Retirement System (MPERS).  Other Missouri public pension systems, except for the Public School Retirement System (PSRS), the Public Education Employee Retirement System (PEERS), and the Missouri Local Government Employees Retirement System (LAGERS), may contract with the company to act as trustee of their system's assets or to provide investment management or investment advisory services.

PSRS/PEERS is still in the process of reviewing all the facets of this bill.  PSRS/PEERS is extremely concerned about the creation of any type of private investment company and opposes the concept of a private investment company to manage public funds of PSRS/PEERS.   

On March 4, SB 1050 was referred to the Senate Veterans’ Affairs, Pensions and Urban Affairs Committee.  There are several bills filed this year which also could be utilized as legislative vehicles to enable passage of this provision.  Those bills are: SB 714, SB 715, SB 896, SB 1048, and SB 1049.  http://www.psrs-peers.org/Legislation.htm  We will continue to monitor those bills and keep our members apprised of any legislative action which might impact our retirement systems.

Even though PSRS/PEERS is not currently in SB 1050, we are concerned that we could be included in the future.  If you wish to contact your legislator and voice your opposition to the concept of a private investment company to manage public retirement system funds and of PSRS/PEERS being included in future legislation in this regard, we would advise that you contact them when they return from spring break on March 15th.   To find your legislator, go to http://www.senate.mo.gov/llookup/leg_lookup.aspx.