In State Workers' Insurance Fund, further providing for investments by board.
Summary
HB2499 amends the Workers’ Compensation Act provisions governing the State Workers’ Insurance Fund’s investment authority. Under current law, the board may invest surplus or reserve funds in securities and investments authorized for savings banks. This bill expands that authority by expressly allowing the board to invest up to 20% of the fund’s assets in equity investments, while also requiring that all investments comply with the prudent investor rule under 20 Pa.C.S. § 7203.
The bill also preserves the existing framework for custody and administration of fund investments by the State Treasurer, including the Treasurer’s role in holding securities, collecting principal and interest, and executing payments and sales upon board authorization. The measure takes effect 60 days after enactment.
Impact
HB2499 would change the investment rules for the State Workers’ Insurance Fund by creating a specific statutory exception that permits a limited allocation of fund assets into equities, notwithstanding several other banking and fiscal code restrictions. It would affect the board overseeing the fund, the State Treasurer as custodian, and the management of surplus and reserve assets under the Workers’ Compensation Act.
Sentiment
No committee transcript or recorded vote information is available with the bill materials, so there is no documented debate or roll-call sentiment to assess. Based on the text alone, the bill appears to be a technical financial-management measure aimed at modernizing investment options for the fund rather than a broadly controversial policy change.
Contention
The main potential point of contention is the shift from a more conservative fixed-income/savings-bank investment framework to allowing up to 20% in equity investments. Supporters would likely view this as a way to improve returns and diversify the fund, while critics may worry about increased market risk and the prudence of exposing workers’ compensation reserves to equities. The bill addresses that concern by explicitly tying investments to the prudent investor rule.
Authorizing the State Workers' Insurance Board to make available health insurance policies for purchase by the general public; providing for premiums; and authorizing a loan from the State Workers' Insurance Fund.
In liability and compensation, further providing for schedule of compensation; and, in Uninsured Employers Guaranty Fund, further providing for claims.