Governor Rendell signed House Bill 126 (“HB 126”) and Senate Bill 592 (“SB 592”) into law on October 27, 2006 and November 9, 2006, respectively. These bills generally provide an exception from “right to know” disclosures for alternative investments (such as pooled investment funds) made by the Public School Employees’ Retirement System (“PSERS”) and the State Employees’ Retirement System (“SERS”). Specifically, HB 126 applies to SERS and SB 592 applies to PSERS.
Under Pennsylvania law, PSERS and SERS are required to maintain records of their proceedings, which records are open to inspection by the public. HB 126 and SB 592 create exceptions to the open records general rule to protect records, materials or data received, prepared, used or retained by the board of PSERS or SERS or their employees, investment professionals or agents relating to investments if, in the reasonable judgment of the board of PSERS or SERS, the release of such information would:
Notwithstanding the above protections, SB 592 (which applies to PSERS) goes a step further and provides that the below information regarding an alternative investment vehicle will be subject to public inspection. There is no corresponding provision in HB 126 (which applies to SERS).
This information has been prepared by Klehr, Harrison, Harvey, Branzburg LLP (“Klehr-Harrison”) for general information purposes only. It does not constitute legal advice, and is presented without representation or warranty as to its accuracy, completeness or timeliness. Transmission or receipt of this information does not create an attorney-client relationship with Klehr-Harrison. Parties seeking advice should consult with legal counsel familiar with the particular circumstances.