2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 21-122 - Investment Division

§21-122.

(a) (1) There is an Investment Division in the State Retirement Agency.

(2) Subject to paragraph (3) of this subsection, the Board of Trustees shall determine the qualifications and compensation for the following positions within the Investment Division:

(i) deputy chief investment officer; and

(ii) managing director.

(3) The Board of Trustees may not:

(i) set or increase the salary for the deputy chief investment officer at an amount greater than the maximum salary under the ES11 scale of the Maryland Executive Pay Plan;

(ii) set or increase the salary for a managing director at an amount greater than the maximum salary under the ES9 scale of the Maryland Executive Pay Plan;

(iii) provide bonuses for an employee; or

(iv) subject to the limitations under items (i) and (ii) of this paragraph, set or increase the salary for a position that provides more than a 10% increase over the lowest salary for the position in the prior fiscal year.

(4) On or before October 1, 2012, and each October 1 thereafter, the Board of Trustees shall report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Joint Committee on Pensions, in accordance with § 2-1246 of the State Government Article on:

(i) the current salaries of the deputy chief investment officer and the managing directors of the Investment Division;

(ii) any salary increases the deputy chief investment officer or managing directors of the Investment Division have received in the fiscal year immediately preceding that October 1; and

(iii) 1. the number of individuals in the Investment Division of the State Retirement Agency who were employed as professional investment staff and terminated employment with the State Retirement Agency in the fiscal year immediately preceding that October 1;

2. the number of years of employment an individual described in item 1 of this item had accrued with the State Retirement Agency at the time the individual terminated employment with the State Retirement Agency; and

3. to the extent possible, the new employer, position, and salary the individual described in item 1 of this item accepted upon terminating employment with the State Retirement Agency.

(b) As the Board of Trustees specifies, the Investment Division shall invest the assets of the several systems.

(c) (1) Quarterly, the Investment Division shall submit to the Board of Trustees a report about the commissions that the State Retirement Agency pays on investments.

(2) The report shall detail:

(i) the identity of each recipient of a commission that the State Retirement Agency paid during the previous quarter;

(ii) the dollar amount of commission business that each recipient performs;

(iii) the average price-per-share each recipient charged or, if the commission was paid on a net basis, the markup or markdown that the recipient uses; and

(iv) a reasonable history of the allocation of commissions.

(d) On behalf of the several systems, the Chief Investment Officer:

(1) may hire external investment managers to invest the assets of the several systems;

(2) may select and invest in specific investment vehicles, including limited partnerships, private equity fund investments, and private real estate fund investments; and

(3) may terminate the appointment of an external investment manager.

(e) Prior to terminating the appointment of an external investment manager under subsection (d)(2) of this section, the Chief Investment Officer shall provide written documentation to the Board of Trustees and the Investment Committee explaining the basis for the termination.