State switches to board structure from sole fiduciary model
Michigan Gov. Rick Snyder named three appointees to the new State of Michigan Investment Board, confirmed Ron Leix, spokesman for the state treasurer's office.
Joining state Treasurer Nick Khouri, the new board's chairman, and state Budget Director John Walsh are Dina Richard, senior vice president of treasury and chief investment officer for Trinity Health; James Nicholson, chairman of PVS Chemicals; and Reginald Sanders, director of investments for the W.K. Kellogg Foundation. All three previously were on the state's investment advisory committee, which the new investment board replaces.
Under an executive order that Mr. Snyder signed in September, the state pension plan governance structure has switched to a board model from a sole fiduciary model. Now, the State of Michigan Investment Board, not the state treasurer, will be responsible for the investments of the $70 billion Michigan Retirement Systems, East Lansing.
"Updating our current pension investment system will benefit and protect hundreds of thousands of Michiganders during their retirements," Mr. Snyder said in a news release announcing the investment board. "By dissolving the Investment Advisory Committee and replacing it with the State of Michigan Investment Board, we are able to ensure Michigan pensions are invested in a more robust way."