Colorado Legislative Council Staff
NO FISCAL IMPACT
January 6, 1998
Harry Zeid (866-4753)
TITLE: CONCERNING A REQUIREMENT THAT TRUSTEES WHO MANAGE THE ASSETS OF A BENEFIT RETIREMENT SYSTEM THAT IS MAINTAINED FOR EMPLOYEES OF A SCHOOL DISTRICT SHALL BE GOVERNED BY THE STANDARD FOR TRUSTEES CONTAINED IN THE COLORADO “UNIFORM PRUDENT INVESTOR ACT”.
Summary of Assessment
This bill specifies that if a school district maintains a benefit or retirement system that utilizes the trust form for managing and investing the funds and assets of the system, the trustee or trustees of the fund would be required to manage and invest the funds and assets held in trust pursuant to the standard and other provisions for trustees set forth in the “Uniform Prudent Investor Act” (UPIA), as made applicable to any trust in existence on July 1, 1995.
The UPIA establishes prudent criteria to be considered in making investments, but does not establish statutory restrictions on the percentage of the funds that may be invested in various asset categories. The bill would apply to the Denver Public Schools Employees’ Pension and Benefit Association. The bill would not affect the revenues or expenditures of the state or of local school districts. Therefore, the bill is assessed as having no fiscal impact. The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.