Investment Policies

State law requires that each relief association have an investment policy on file with the OSA.

An investment policy is an important tool to help relief association trustees fulfill their roles as fiduciaries. Investment policies should define and assign investment decision-making and oversight roles, provide for review of investment transactions and strategies, encourage effective communication and reporting, identify the risk tolerance of the relief association members and trustees, and provide continuity to the investment program. Investment policies may be crafted to apply to all investments made by the relief association, or only to the investment of special fund assets.

The following items should be included in a relief association investment policy:

• Statement of Objectives (including benchmarks and target asset allocations);
• Internal Controls;
• Standards of Conduct;
• Investment Reporting;
• Ethics and Conflicts of Interest; and
• Investment Restrictions.

Additional detail and suggestions for each of these items is provided in our Statement of Position on Investment Policies.

A Statement of Position on Investment Authority for relief associations is also provided on our website.

A relief association should review its investment policy annually to ensure that it accurately reflects the relief association’s investment goals and objectives. Any changes to the investment policy must be filed with the OSA.

Published last in the May 2021 Pension Newsletter