What's happening
This bill expands the types of investments allowed for the surplus funds of New York's state insurance fund.
Why it matters
Broader investment options could increase returns. for the State Insurance Fund, potentially resulting in more resources for worker benefits, lower premiums, or greater financial stability.
Allowing investments in a wider range of securities, including investment-grade obligations and diversified index funds, gives fund managers more flexibility. to respond to market conditions and diversify risk, which could help protect against losses in any one asset class.
Permitting a portion of surplus funds to be invested without strict ratings requirements or in alternative investments (up to set percentages). may allow for higher-yield opportunities but also introduces new risks, emphasizing the need for prudent management and oversight.
Clarifies that certain appropriated funds are excluded from these investment options. , ensuring that only true surplus funds are subject to the expanded investment rules, which maintains a safeguard for core obligations of the fund.
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Broaden State Fund Investments
Plain English, a few words. Used as the page title.
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History
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand State Fund Investments
In Assembly Committee · Labor · Sponsor Pamela Helming
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8353
2017-2018 Regular Sessions
IN ASSEMBLY
June 12, 2017
Introduced by M. of A. ABBATE -- read once and referred to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to the investment of surplus of the state insurance fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 87 of the workers' compensation law, as added by section 20 of part GG of chapter 57 of the laws of 2013, is amended to read as follows:
2. Any of the surplus funds belonging to the state insurance fund, by order of the commissioners, approved by the superintendent of financial services, may be invested (1) in the types of securities described in subdivisions one, two, three, four, five, six, eleven, twelve, twelve-a, thirteen, fourteen, fifteen, nineteen, twenty, twenty-one, twenty-one-a, twenty-four, twenty-four-a, twenty-four-b, twenty-four-c and twenty-five of section two hundred thirty-five of the banking law, or (2) in the types of obligations described in paragraph two of subsection (a) of section one thousand four hundred four of the insurance law except that up to twenty-five percent of surplus funds may be invested in obligations rated investment grade by a nationally recognized securities rating organization, or[,] (3) up to fifty percent of surplus funds, in the types of securities or investments described in paragraphs [two,] three, eight and ten of subsection (a) of section one thousand four hundred four of the insurance law, except that [up to ten percent of surplus funds may be invested] investments in [the securities of any solvent American institution as described in such paragraphs] diversified index funds and accounts may be made irrespective of the rating [of such institution's obligations] or other similar qualitative standards [described therein, and] applicable under such paragraphs, or (4) up to ten percent of surplus funds, in the types of securities or investments described in paragraphs two, three and ten of subsection (a) of section
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13067-01-7
A. 8353 2
one thousand four hundred four of the insurance law irrespective of the rating of such institution's obligations or other similar qualitative standard, or (5) up to fifteen percent of surplus funds in securities or investments which do not otherwise qualify for investment under this section as shall be made with the care, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims as provided for the state insurance fund under this article, but shall not include any direct derivative instrument or derivative transaction except for hedging purposes. Notwithstanding any other provision in this subdivision, the aggregate amount that the state insurance fund may invest in the types of securities or investments described in paragraphs three, eight and ten of subsection (a) of section one thousand four hundred four of the insurance law and as a prudent person acting in a like capacity would invest as provided in this subdivision shall not exceed fifty percent of such surplus funds. For purposes of this subdivision, any funds appropriated pursuant to the provisions of subdivision one or two of section eighty-seven-f of this article shall not be considered surplus funds.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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