Deal signs new pension fund bill
For the first time the pension fund for State employees will be able to invest in so called “alternative investments.” That includes private equity and venture capital funds.
This week, Governor Nathan Deal signed the bill. The goal is to yield higher returns, but there could also be another benefit.
By investing in venture capital, managers of the State’s pension fund could give Georgia’s economy a boost. David Raynor heads Government Affairs for the Georgia Chamber of Commerce.
“These funds we find have been utilized to help start up companies in Georgia to expand and create jobs in the state.”
Critics of the new law say alternative investments are risky and cost more to manage. The teachers retirement system of Georgia is exempt from the program.
Raynor says the new law allows alternative investments, it doesn’t mandate them. It also caps how much of the retirement fund can be invested into one of these alternative accounts. Georgia is the last state to allow alternative investments.
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