MI HB4289

Requires each large sponsored pension system to establish an investment committee to recommend investment management decisions to the governing board.

Investment committee responsibilities include developing investment goals and objectives, selecting and monitoring investment managers and custodians, determining asset allocation, and reviewing actuarial assumptions and annual audits.

Investment committee must select and evaluate the system's chief investment officer (changed from "chief financial officer").

Governing board has 45 days (or 10 business days for emergencies) to approve or disapprove committee recommendations; recommendations are automatically approved if the board fails to act within the deadline.

If the board disapproves a recommendation, the investment management decision must be implemented under the system's bankruptcy court-approved plan for adjustment.