Agenda Item 5C
February 4, 2014
January 31, 2014
Robert H. Drummer, Senior Legislative Attorney
Expedited Bill 15-14, Personnel- Board ofInvestment Trustees
Consolidated Retiree Health Benefits Trust Board of Trustees - Investments Amendments
Expedited Bill 15-14, Personnel Board of Investment Trustees - Consolidated Retiree
Health Benefits Trust Board of Trustees Investments - Amendments, sponsored by the Council
President at the request of the County Executive, is scheduled to be introduced on February 4. A
public hearing is tentatively scheduled for February 25 at 1:30 p.m.
repeal the requirement that investments made by the Board of Investment
Trustees and the Consolidated Retiree Health Benefits Board of Trustees retain
U.S. indicia of ownership;
repeal the prohibition on investments in County related bonds by the Board of
Investment Trustees and the Consolidated Retiree Health Benefits Board of
repeal the restriction on real estate investment by the Consolidated Retiree Health
Benefits Board of Trustees; and
generally amend the law regarding the Employees' Retirement System,
Retirement Savings Plan, the Deferred Compensation Plan, and the Consolidated
Retiree Health Benefits Trust Fund.
The Boards of the Montgomery County Employee Retirement Plans and the Montgomery
County Consolidated Retiree Health Benefits Trust are currently precluded from making
investments maintaining indicia of ownership of assets outside the jurisdiction of the U.S. courts.
Since investment opportunities are increasingly located outside of the United States, many
without maintaining United States indicia of ownership within the jurisdiction of the courts of
the U.S, current law constrains the pool of investments available to the Employee Retirement
Plans and Consolidated Retiree Health Benefits Trust. This restriction may unnecessarily limit
the returns that can be generated by these entities.