Georgia Senate Passes Bill for Retirement Assets with Alternative Investment Opportunities

In February 2020, Georgia Senate passed bill allowing  “the state teacher retirement fund to invest in certain alternative investments”. The bill received 34 yes and 19 nays from the senate.

Senator Ellis Black acts as the state senator and sponsor of the bill, wanting to invest retirement assets into alternative investments such as venture capital funds, private equity, and distressed debt.

The Teachers Retirement System of Georgia (TRS) has been investing strictly in equities and fixed income. The current investment percentage is 29.8% in fixed income and 70.2% in equities. SB294, the new bill, sets a 5% target allocation to alternative investments.

In order to provide the greatest investment opportunity, the efforts would focus on a well diversified portfolio.

Georgia is the only state that did not allow TRS funds to be invested in alternative investment channels. The senate expects expanding to alternative funds to give the highest ROI possible for public workers.

The next step will be the Georgia House giving their final verdict of SB294.