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BPIC tells Appropriations it can manage OPEB assets but asks for one staff position if H.567 passes
Summary
BPIC chair Tom Balanca told the Appropriations Committee BPIC's 10-year returns average 8.3%, assets have grown to about $8 billion, and if House bill 567 transfers OPEB investments to BPIC the board requests one additional financial staff position funded from special funds.
Tom Balanca, chair of BPIC, told the House Appropriations Committee on Feb. 5 that BPIC has delivered a 10‑year annualized return of 8.3% and that fund assets have grown from roughly $3 billion to about $8 billion in the past decade. He said BPIC operates with a small investment team—"a staff of 4"—and pays relatively low fees compared with peer state funds.
Balanca told members BPIC is listed in "house bill 5 67 to potentially take over investment of the OPEB funds" and asked the committee to add one financial staff position to assist with that work if the transfer is approved. He stressed that the added position would be paid from special funds associated with the pension system, not from the general fund.
Committee members questioned operational risk and capacity. Balanca said the board has documented the additional rigor needed for the merged asset pool and has discussed those needs with the treasurer’s office and House Government Operations. He described the OPEB pool as roughly "$300 or $400,000,000" today and said it is about "16% funded right now," with the goal over time of growing the assets to something closer to $2,000,000,000 to better meet other post-employment obligations.
BPIC staff flagged recruitment and retention risks if market-factor adjustments are not implemented; Balanca and Chief Investment Officer Eric Henry said they have pursued market-factor adjustments through the governor’s office for key positions. Balanca said merging OPEB work could yield economies of scale and access to private-market managers currently unavailable to the OPEB pool.
Balanca closed by offering the committee BPIC’s annual report and reiterating the board’s long-term performance record. The committee agreed to consider BPIC’s staffing request alongside the bill’s progress through other committees.
