PUBLIC EMPLOYEE RETIREMENT SYSTEM INVESTMENT ACT
Act 314 of 1965
38.1132c Definitions; I to L.
Sec. 12c.
(1) "Investment fiduciary" means a person other than a participant directing the investment of the assets of his or her individual account in a defined contribution plan who does any of the following:
(a) Exercises any discretionary authority or control in the investment of a system's assets. Investment fiduciary under this subdivision includes the state treasurer and his or her investment personnel for the systems described in section 13(4).
(b) Renders investment advice for a system for a fee or other direct or indirect compensation.
(2) "Invest" or "investment" means the utilization of money in the expectation of future returns in the form of income or capital gain. Investments initially purchased in accordance with this act that subsequently do not qualify for purchase for any reason shall be considered to continue to meet the requirements of this act. Investment includes a guarantee by an investment fiduciary but does not include, as a sole investment, a pledge of the system's assets as collateral to guarantee the repayment of obligations made by a third party to a borrower.
(3) "Investment grade" means graded in the top 4 major grades as determined by 2 national rating services.
(4) "Large sponsored system" means a system created and established by a city that is subject to a plan for adjustment and that meets 1 or more of the following conditions:
(a) The city has a population of more than 600,000.
(b) The system has discharged at least $1,000,000,000.00 of pension liabilities in bankruptcy.
History: Add. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 ;-- Am. 2012, Act 347, Eff. Mar. 28, 2013 ;-- Am. 2014, Act 185, Imd. Eff. June 20, 2014
Compiler's Notes:
For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
Notes of Decisions
Detroit News, Inc. v. Policemen & Firemen Ret. Sys. of City of Detroit, 651 N.W.2d 127 (Mich. Ct. App. 2002).
“Subsection 12c(l) of the PERSIA, MCL 38.1132c(l), provides: “Investment fiduciary” means a person other than a participant directing the investment of the assets of his or her individual account in a defined contribution plan who does any of the following: (a) Exercises any…”
Gen. Ret. Sys. of Detroit v. Ubs, Ag, 799 F. Supp. 2d 749 (E.D. Mich. 2011).
· cites it 2× “” MCL 38.1132c(l). Plaintiffs allege that defendants had both discretionary control over the investments, selecting which assets' to acquire with the plaintiffs’ $40 million investment, and that they provided investment advice.”
Wayne Cnty. Employees Ret. Sys. v. Wayne Cnty., 301 Mich. App. 1 (Mich. Ct. App. 2013).
“” The plain and unambiguous language of the statute absolutely prohibits the Retirement Commission, an investment fiduciary, MCL 38.1132c(l), from, with actual or constructive knowledge, causing the Retirement System to engage in a transaction that directly or indirectly allows…”
— Mich. Comp. Laws § 38.1132c(l) — 3 cases
Detroit News, Inc. v. Policemen & Firemen Ret. Sys. of City of Detroit, 651 N.W.2d 127 (Mich. Ct. App. 2002).
“Subsection 12c(l) of the PERSIA, MCL 38.1132c(l), provides: “Investment fiduciary” means a person other than a participant directing the investment of the assets of his or her individual account in a defined contribution plan who does any of the following: (a) Exercises any…”
Gen. Ret. Sys. of Detroit v. Ubs, Ag, 799 F. Supp. 2d 749 (E.D. Mich. 2011).
“” MCL 38.1132c(l). Plaintiffs allege that defendants had both discretionary control over the investments, selecting which assets' to acquire with the plaintiffs’ $40 million investment, and that they provided investment advice.”
Wayne Cnty. Employees Ret. Sys. v. Wayne Cnty., 301 Mich. App. 1 (Mich. Ct. App. 2013).
“” The plain and unambiguous language of the statute absolutely prohibits the Retirement Commission, an investment fiduciary, MCL 38.1132c(l), from, with actual or constructive knowledge, causing the Retirement System to engage in a transaction that directly or indirectly allows…”
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