Utah Code 34A-2-706. Investment of Employers’ Reinsurance Fund and Uninsured Employers’ Fund

34A-2-706. Investment of Employers’ Reinsurance Fund and Uninsured Employers’ Fund.

(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.

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Terms Used In Utah Code 34A-2-706

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Compensation: means the payments and benefits provided for in this chapter or Chapter 3, Utah Occupational Disease Act. See Utah Code 34A-2-102
Decision: includes :

(A)	an award or denial of a medical, disability, death, or other related benefit under this chapter or Chapter 3, Utah Occupational Disease Act; or

(B)

another adjudicative ruling in accordance with this chapter or Chapter 3, Utah Occupational Disease Act. See Utah Code 34A-2-102

Order: means an action of the commission that determines the legal rights, duties, privileges, immunities, or other interests of one or more specific persons, but not a class of persons. See Utah Code 34A-2-102

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(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)

(a)	The state treasurer may employ professional asset managers to assist in the investment of the assets of the funds.

(b)	The treasurer may only provide compensation to asset managers from earnings generated by the funds’ investments.

(5)

(a)

The state treasurer shall invest and manage the assets of the funds as a prudent investor would by:

(i)	considering the purposes, terms, distribution requirements, and other circumstances of the funds; and

(ii)	exercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor.

(b)

In determining whether the state treasurer has met the standard of care of a prudent investor, the judge or finder of fact shall:

(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

(ii)

evaluate the state treasurer’s investment and management decisions respecting individual assets:

(A)	not in isolation, but in the context of a fund portfolio as a whole; and

(B)	as a part of an overall investment strategy that has risk and return objectives reasonably suited to the funds.

Enacted by Chapter 207, 2018 General Session

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