PERAC Memo #17 - 2011: Investment Regulation Hearings

Investment Regulation Hearings

Summary

PERAC has adopted draft regulations overhauling investment, bookkeeping, and procurement rules for retirement systems—codifying past guidance (e.g., Hedge Fund Guidelines, Placement Agent Policy, Mandate Modification, Futures/Options use) while updating outdated provisions and adding procurement requirements. Boards should review the draft regulations and summary on PERAC's website and may attend one of the scheduled public hearings (May–June 2011) or submit written comments by the July 1, 2011 deadline before final regulations are filed with the Legislature. No immediate compliance action is required beyond optional participation in the comment process.

Full Text

MEMORANDUM #17, 2011 Mennis M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Investment Regulation Hearings DATE: March 23, 2011 The Public Employee Retirement Administration Commission (PERAC) has adopted Draft Regulations which make major changes to the regulation of the investment, bookkeeping and procurement activities of the retirement systems. The goal of the Commission is 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 and delineated procurement requirements for solicitation of services by retirement boards. The proposal also eliminates outdated regulations. The Commission has scheduled a series of public hearings across the Commonwealth in order to receive comment from affected parties as well as the public prior to the preparation of final regulations. In addition, the Written Comment Period will be open until July 1, 2011. Hearings will take place as follows: Friday, May 20, 2011 1:00 pm to 4:00 pm PERAC, Suite 304, 5 Middlesex Ave. Somerville MA Tuesday, May 24, 2011 1:00 pm to 4:00 pm PERAC, Suite 304, 5 Middlesex Ave., Somerville, MA Wednesday, May 25, 2011 1:00 pm to 4:00 pm Fall River Police Department 685 Pleasant Street, Fall River, MA Thursday, June 2, 2011 9:30 am to 12:30 pm West Springfield Municipal Office Building 26 Central Street, Second Floor West Springfield, MA

Monday, June 6, 2011 3:30 pm to 5:00 pm (time is tentative) MACRS Conference Resort and Conference Center 35 Scudder Avenue Hyannis, MA Following the Hearings and the conclusion of the Written Comment Period the Commission will consider comments and recommendations made during the process and finalize proposed regulations for filing with the Legislature. Copies of the Draft Regulations as well as a summary are available on the Home Page of the PERAC Web Site If you have questions, please contact me or Deputy Director Joseph Martin.