Section 802.202, Texas Government Code requires Texas public retirement systems to adopt a written investment policy. The law does not mandate the type or ratio of investments. The written investment policy must be available to the public for review, and a copy must be filed with the Pension Review Board within 90 days of adoption.
Under Section 27(d), Article 6243e, Vernon’s Civil Statutes, TLFFRA systems are also required adopt formal investment policies that emphasize safety, diversity, and liquidity for benefit payments.
The PRB provides guidelines to assist systems in developing and maintaining a complete, well-developed investment policy statement (IPS) consistent with various industry best practices. The guidelines offer a high-level overview and minimum framework but also allow flexibility for systems and their investment consultants, advisors, and/or investment staff to construct an IPS that fits their needs.
In addition to the guidelines, the PRB provides guidance which is intended to provide more in-depth descriptions of the high-level policies identified and recommended in the Guidelines for Investment Policy Statements.
The links to the documents are below, along with additional tools to assist with the development of an IPS.
