Washington Constitution Article XXIX - Investments of Public Pension and Retirement Funds
Here is a summary of Article XXIX of the Washington State Constitution, which concerns the Investments of Public Pension and Retirement Funds:
Washington Constitution — Article XXIX: Investments of Public Pension and Retirement Funds
Purpose:
This article governs how public pension and retirement funds in Washington State must be invested.
Key Provisions:
Prudent Investment:
Investments of public pension and retirement funds must be made in a manner consistent with the "prudent investor" standard. This means investments should be made with care, skill, prudence, and diligence, considering the best interests of the beneficiaries.
Diversification:
The funds must be diversified to minimize the risk of large losses unless it is clearly prudent not to do so.
Investment Authority:
The authority to invest and manage these funds lies with designated officials or entities (e.g., state investment boards or retirement system trustees).
Types of Investments:
The funds may be invested in a broad range of assets such as bonds, stocks, real estate, and other financial instruments as allowed by law and consistent with prudent investment principles.
Protection of Fund Assets:
The article seeks to protect the integrity and safety of pension and retirement funds to ensure long-term sustainability for retirees.
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