SBI Investment Portfolio Limits
Relief associations have authority to transfer special fund assets to the State Board of Investment (SBI) for investment in the Minnesota Supplemental Investment Fund. The Minnesota Supplemental Investment Fund was established by the legislature to provide an investment vehicle for various public retirement plans, including volunteer fire relief associations. There currently are six accounts within the Fund that relief associations can choose for investment.
Investments in the Minnesota Supplemental Investment Fund must conform to the statutory limitations governing a relief association’s asset mix. For example, relief associations may invest up to 85 percent of their special fund portfolio in a combination of all corporate stock and “other investments.” This limit applies to all stock investments, including those through mutual funds, exchange traded funds, and the SBI Supplemental Investment Fund.
Additional information about relief association investment authority and portfolio limitations can be found in our Statement of Position on this topic. Information about the Supplemental Investment Fund can be found on the SBI’s website.
Trustees of relief associations that invest in the Supplemental Investment Fund should make sure that transfer verifiers are on file with the SBI. A verifier is an officer of the relief association who the SBI will contact when processing a wire transfer request, to confirm the account number to which the money should be transferred. Having a designated individual who will be the contact person to confirm transfer requests is a good internal control and helps to protect the pension assets.
Published last in the October 2020 Pension Newsletter