CFO Sink: SBA Reforms Overdue, More Required to Protect Pension Fund
CONTACT: Kevin Cate (850) 413-2842
TALLAHASSEE, FL – Florida CFO Alex Sink called State Board of Administration (SBA) reforms passed by the Florida Legislature today long overdue, but also expressed concern that stronger oversight of Florida’s $112 billion pension fund was not included in the final bill.
“Although the Legislature has finally made the decision to put into law reforms that I have advocated for over the last two years, they failed to include what I have consistently said is the most meaningful reform – the expansion of the Board of Trustees to include people with financial experience and expertise,” said CFO Sink. “The buck stops with the Trustees and I believe that by not having the strongest oversight possible, we do a disservice to our police officers, firefighters, teachers and other state employees who entrust their retirement to our pension fund.”
The SBA Reform Bill House Bill 1307 includes many of the important recommendations that CFO Sink laid out more than two years ago at the start of the 2008 Legislative Session and entitled “Ten Proposals to Strengthen Safeguards over Florida investments.” CFO Sink previously worked to enact many of the reforms passed today, such as required Quarterly Board Meetings for the current SBA trustees, and now these changes will be cemented into law for future Boards.
Reforms passed this session from CFO Sink’s Ten Point Plan include: ethics reforms for investment advisors, managers and members of the Investment Advisory Council, the creation of an audit committee to ensure annual independent audits of FRS financial statements, enhanced reporting at quarterly SBA Board meetings, and strengthening qualifications and performance measures for the SBA executive director.
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