SPONSORS: STORY: EXISTING LAWS AEFECTED: PROPOSED. LEGISLATION ANAC’ 12009 0/0409 06/18/09 ossis09 “T RELATIVE TO PENSION GOVERNANCE REFORM. Public Employee Retirement Adhinstation Commission 11 29 celerred tothe committee on Join Comittee on Publi Service Public Fearing $5 2088 secompanied a new drat and reported favorably by ‘commitee '5 2088 referred to committee on Sentte Ways & Means GL. 4, §7,6. 7, §50,€.30B, $1,¢. 32, §§ 20,21, 23,6. 4B, 19, ¢. 1S0E, §7 This legislation reforms public retiement board governance mechanisms and provides greater transparency. ‘This bill eliminates the existing investment exemption process, While retaining certain restrictions on investments in morigages, collateral loans and tobacco, le requires the retirement boards to employ an investment ‘manager or investment managers. ‘This legislation provides that prior to hing an investment consultant the Board must submit to PERAC disclosure ferms and vendor enification. PERAC wll continue to have the power to prohibit a particular investment ft isin the best interest ofthe retirement system, ‘The legislation establishes an open and competitive procurement process when soliciting investment, actuarial legal ‘oF accounting system. ‘Authorizes PERAC to debar firms from doiag business with public retirement systems ifthe frm has bein convicted of a «rime involving public contracts, Found to supply false information to obtain contract, submitted an inaccuratesENCY COMMENTS: ESTIMATI cost: «Ko Uisclosure sstement or filed to disclose compensation provided instempt ro obtain a public contrat, ‘The process has "wo steps (1 suspension. a temporary disqualification (no ‘more than 2 months) and (2) debanment. ‘This legislation prohibits certain persons doing business with public retirement boards to serve on that public retirement hoard ‘The bill nereass the board stipend maximum from $3,000 to $7,500. Board members will be required to receive 18 hours of relevant ‘taining during thee tern, All collective bargaining agreements willbe filed withthe reticement board ‘This legislation provides that PERAC will appoint a receiver to ‘verse the Essex Regional Retirement Board, to seve fora term no longer than I year. The receiver may appoint, remove and supervise the board employees, control all personnel ‘matters, remove board members, and generally discharge the duties ofthe board Empowers PERAC to appoint a meriver to oversee any board that fas to comply with chapter 32. PERAC strongly suppots this legislation. ‘This legislation will result inno costo the Commonwealth,