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Michigan Legislature
Michigan Compiled Laws Complete Through PA 125 of 2023
House: Adjourned until Tuesday, September 26, 2023 1:30:00 PM
Senate: Adjourned until Tuesday, September 26, 2023 10:00:00 AM

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Act 314 of 1965
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Act 314 of 1965

AN ACT to authorize the investment of assets of public employee retirement systems or plans and the contributions made by employees to retirement systems or plans created and established by the state or any political subdivision; to provide for the payment of certain costs and investment expenses; to authorize investment in variable rate interest loans; to limit employer and plan official liability for certain investment decisions; to define and limit the investments which may be made by an investment fiduciary with the assets of a public employee retirement system; and to prescribe the powers and duties of investment fiduciaries and certain state departments and officers.

History: 1965, Act 314, Imd. Eff. July 22, 1965 ;-- Am. 1980, Act 31, Imd. Eff. Mar. 8, 1980 ;-- Am. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1988, Act 252, Eff. Jan. 1, 1989 ;-- Am. 1988, Act 253, Eff. Jan. 1, 1989 ;-- Am. 1988, Act 343, Imd. Eff. Oct. 19, 1988 ;-- Am. 2014, Act 242, Imd. Eff. June 27, 2014

The People of the State of Michigan enact:

Section 38.1121-38.1131SectionRepealed. 1982, Act 55, Imd. Eff. Apr. 6, 1982.
Section 38.1132SectionShort title; meanings of words and phrases.
Section 38.1132aSectionDefinitions; A.
Section 38.1132bSectionDefinitions; D to G.
Section 38.1132cSectionDefinitions; I to L.
Section 38.1132dSectionDefinitions; N to P.
Section 38.1132eSectionDefinitions; S.
Section 38.1132fSectionDefinitions; V.
Section 38.1133SectionInvestment authority; investment fiduciary; investing, reinvesting, holding in nominee form, and managing assets of system; powers and duties; compliance with divestment from terror act; costs; "consumer price index" defined; disclosure of fees or other compensation by investment service provider; "investment service provider" defined; prohibited acts; exceptions; requirements; debt instrument issued by foreign country; out-of-state travel; investment in hazardous waste deep disposal well facility; testimony by representative of office of retirement services in department of technology, management, and budget; executive summary of summary annual report; posting on website; submission to legislature; "state unit" defined.
Section 38.1133aSection“MacBride principles” defined; duties of investment fiduciary; effect of unlawful principle.
Section 38.1133bSectionRepealed. 1993, Act 214, Imd. Eff. Oct. 27, 1993.
Section 38.1133cSectionDefinitions; effort by fiduciary to identify scrutinized companies; assembly into scrutinized companies list; update and availability of list; procedures; report; effectiveness of section; exemption of fiduciary from conflicting statutory or common law obligations; liability; affirmative exclusion from federal sanctions; severability.
Section 38.1133dSectionDefinitions; scrutinized companies; identification by fiduciaries; assembling scrutinized companies list; update by fiduciary; procedure; report; effectiveness of section; conditions; liability of fiduciary; scrutinized company affirmatively excluded from federal sanctions; effect; severability.
Section 38.1133eSectionProhibited conduct by investment fiduciary, service provider, or covered associate of service provider; exceptions; definitions; official of governmental entity.
Section 38.1133fSectionBreach of public trust by investment fiduciary or service provider; "service provider" defined.
Section 38.1133gSectionInvestment committee; establishment by large sponsored system; duties; recommendation; definitions.
Section 38.1134SectionInvestment in stock or global security.
Section 38.1135SectionInvestment in investment companies.
Section 38.1136SectionInvestment in annuity investment contracts or participations in separate accounts of life insurance company; investment in general account of life insurer; requirements.
Section 38.1137SectionOther authorized investments; prohibited investments.
Section 38.1138SectionInvestment in real estate or mortgages on certain leased real property.
Section 38.1139SectionInvestment in real estate investment trust or real or personal property.
Section 38.1139aSectionState treasurer as investment fiduciary; investments in private equity; limitation; investment fiduciary not state treasurer; limitation.
Section 38.1139bSectionDeduction from employee compensation by public employer; automatic enrollment of employee; notice; investment alternatives; liability; definitions.
Section 38.1140SectionInvestment in secured loans; real property not considered encumbered; investment in part of obligation or participation interest in loan or group of loans; investment in real estate loan; investment in loan or loans or certificate of participation secured by loan or loans made on single family residential property; investment in certificates representing interest in mortgages or group of mortgages; limitations and restrictions; investment in second mortgage; investment with variable interest rate.
Section 38.1140aSectionInvestment in debt, warrant, or equity interest in small business, small business investment company, or venture capital firm; creation of small business investment companies or venture capital firms to invest in small businesses; limitation.
Section 38.1140bSectionDeposits by investment fiduciary.
Section 38.1140cSectionFinancial institution, trust company, or management company retained as investment fiduciary; investment of system assets in collective investment fund, common trust fund, or pooled fund established and maintained by financial institution or management company; “financial institution” defined.
Section 38.1140dSectionInvestments not qualified under act.
Section 38.1140eSectionLoan of securities by investment fiduciary.
Section 38.1140fSectionTransferring and holding securities.
Section 38.1140gSectionInvestment in securities exempt from taxes.
Section 38.1140hSectionApplicable law; retention of financial records; "financial records" defined; disclosure of certain information; actuarial valuation; supplemental actuarial analysis; "proposed pension benefit change" defined; availability and publication of summary annual report.
Section 38.1140iSectionRepealed. 2000, Act 307, Imd. Eff. Oct. 16, 2000.
Section 38.1140jSectionInvestment in derivatives.
Section 38.1140kSectionInvestment in global securities; prohibited conduct.
Section 38.1140lSectionFinancial or proprietary information.
Section 38.1140mSectionEmployer contribution.
Section 38.1141SectionRemoval of member of board or body.
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