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Committee approves amendment tying SWIFT investment increase to prudent‑investor rule
Summary
House Bill 2499, which would raise SWIFT’s equity cap to 20%, was amended to clarify that all SWIFT investments remain subject to the prudent‑investor standard; the amendment was adopted and the bill was favorably reported.
Representative Karoski introduced House Bill 2499 to increase the State Workers Insurance Fund’s (SWIFT) authority to invest in equities to 20% of the fund’s assets, up from the statutory limits described in current law.
"SWIFT’s current investment authority in equities is limited by law to 7.5% of the book value of the fund's assets or 15% of the fund's assets, whichever is lesser," Representative Karoski said. The bill asks the Legislature to raise that threshold to 20% to give SWIFT more flexibility to respond to market conditions and potentially bolster revenue so premium increases may be avoided.
Chairman James offered amendment A03534 to clarify that all SWIFT investments must comply with the prudent‑investor standard. "My amendment fixes that oversight," James said, noting the amendment was drafted with the department and majority chairman’s office and that the treasurer’s office had been consulted.
Members asked about increased risk from larger equity exposure; Representative Gla said the change raises market risk and that investments could lose value. Karoski acknowledged risk but said constituents hoped for higher investment returns.
The committee agreed to the amendment and favorably reported the bill as amended.
The committee’s action advances HB 2499 for further consideration by the full House.
