HB1768: Virginia Retirement System; stress testing and reporting policies.


VIRGINIA ACTS OF ASSEMBLY -- CHAPTER
An Act to require the Virginia Retirement System to adopt stress testing and reporting policies.
[H 1768]
Approved

 

Be it enacted by the General Assembly of Virginia:

1. § 1. The Virginia Retirement System (VRS) shall adopt a formal policy to:

1. Develop and regularly report sensitivity and stress test analyses. Such analyses and reporting shall include projections of benefit levels, pension costs, liabilities, and debt reduction under various economic and investment scenarios;

2. Improve investment transparency and reporting policy by (i) providing a clear and detailed online statement of investment policy; (ii) including one-year, three-year, five-year, and 10-year investment performance data in quarterly investment reports; (iii) including 20-year and 25-year investment performance data in annual investment reports; (iv) reporting net investment returns on a quarterly basis; and (v) reporting gross investment returns and returns by asset class on an annual basis; and

3. Regularly report investment performance and expenses such as external manager fees, carried interest fees, and investment department expenses for all asset classes, including private equity, public equity, fixed income, credit strategies, real assets, strategic opportunities, and other investments.


HOUSE BILL NO. 1768
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Appropriations
on January 30, 2017)
(Patron Prior to Substitute--Delegate Garrett)
A BILL to require the Virginia Retirement System to adopt stress testing and reporting policies.

Be it enacted by the General Assembly of Virginia:

1. § 1. The Virginia Retirement System (VRS) shall adopt a formal policy to:

1. Develop and regularly report sensitivity and stress test analyses. Such analyses and reporting shall include projections of benefit levels, pension costs, liabilities, and debt reduction under various economic and investment scenarios;

2. Improve investment transparency and reporting policy by (i) providing a clear and detailed online statement of investment policy; (ii) including one-year, three-year, five-year, and 10-year investment performance data in quarterly investment reports; (iii) including 20-year and 25-year investment performance data in annual investment reports; (iv) reporting net investment returns on a quarterly basis; and (v) reporting gross investment returns and returns by asset class on an annual basis; and

3. Regularly report investment performance and expenses such as external manager fees, carried interest fees, and investment department expenses for all asset classes, including private equity, public equity, fixed income, credit strategies, real assets, strategic opportunities, and other investments.

HOUSE BILL NO. 1768

Offered January 11, 2017
Prefiled January 9, 2017
A BILL to require the Virginia Retirement System to adopt stress testing and reporting policies.
Patron-- Garrett

Committee Referral Pending

Be it enacted by the General Assembly of Virginia:

1. § 1. The Virginia Retirement System (VRS) shall adopt a formal policy to:

1. Develop and regularly report sensitivity and stress test analyses. Such analyses and reporting shall include projections of benefit levels, pension costs, liabilities, and debt reduction under various economic and investment scenarios;

2. Improve investment transparency and reporting policy by (i) providing a clear and detailed online statement of investment policy; (ii) including one-year, three-year, five-year, 10-year, 20-year, and 25-year investment performance data in quarterly investment reports; (iii) reporting investment returns, both gross and net of fees; and (iv) reporting returns by asset class; and

3. Regularly report investment performance and expenses such as external manager fees, carried interest fees, and investment department expenses for all asset classes, including private equity, public equity, fixed income, credit strategies, real assets, strategic opportunities, and other investments.