§ 34A-2-706 — Investment of Employers' Reinsurance Fund and Uninsured Employers' Fund.

Utah § 34A-2-706

• Jurisdiction: Utah
• Title 34A: Utah Labor Code
• Ch. 34A-2: Workers' Compensation Act
• Part 34A-2-7: Funds

Text

(1) The state treasurer shall invest the assets of the Employers' Reinsurance Fund created under Section 34A-2-702 and the Uninsured Employers' Fund created under Section 34A-2-704 with the primary goal of providing for the stability, income, and growth of the principal.
(2) Nothing in this section requires a specific outcome in investing.
(3) The state treasurer may deduct any administrative costs incurred in managing fund assets from earnings before distributing the earnings.
(4) (4)(a) The state treasurer may employ professional asset managers to assist in the investment of the assets of the funds.
(4)(b) The treasurer may only provide compensation to asset managers from earnings generated by the funds' investments.
(5) (5)(a) The state treasurer shall invest and manage the assets of the funds as a prudent investor would by:
(5)(a)(i) considering the purposes, terms, distribution requirements, and other circumstances of the funds; and
(5)(a)(ii) exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.
(5)(b) In determining whether the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:
(5)(b)(i) consider the state treasurer's actions in light of the facts and circumstances existing at the time of the investment decision or action, and not by hindsight; and
(5)(b)(ii) evaluate the state treasurer's investment and management decisions respecting individual assets:

(5)(b)(ii)(A) not in isolation, but in the context of a fund portfolio as a whole; and
(5)(b)(ii)(B) as a part of an overall investment strategy that has risk and return objectives reasonably suited to the funds.

Legislative History

Enacted by Chapter 207, 2018 General Session