The Georgia State Senate on Thursday passed legislation to allow most of the state’s public pension funds, including the $13.8 billion Georgia Employees’ Retirement System, Atlanta, to invest in alternatives.
The bill allows large public retirement systems in the state — excluding the $48.1 billion Georgia Teachers’ Retirement System, Atlanta — to “invest retirement system assets in certain types of alternative investments, private placements, and other private investments.” The reason for the exclusion of the teachers’ system couldn’t be learned by press time.
Similar legislation was passed by the state Senate in 2006 and 2007 but did not make it past the state House.
Like the previous efforts, the bill allows funds to invest of up to 5% of total assets in alternative investments run by firms with at least $100 million in assets under management.
James A. Potvin, executive director of the employees system, said the thought was to revive the legislation since “Georgia is pretty much the only state” where pension funds are not yet allowed to invest in alternatives.
“We made sure that our investment division folks are on board with this, and our full board unanimously voted to support the language of the bill,” Mr. Potvin said in an interview.