The Florida Legislature
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Office of Program Policy Analysis and Government Accountability

Economically Targeted Investment Program Under Development, Report No. 08-72, December 2008
 
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  • In 2008, the Legislature determined that using Florida pension funds to make financially prudent technology and growth investments had the potential to generate high-growth and high-wage jobs that would economically benefit the state. These types of investments are called “economically targeted investments.” Federal law requires that such investments maximize returns to pension funds before their economic benefits are considered. Currently, 21 states make economically targeted investments using pension funds.
  • The State Board of Administration is developing Florida’s program, which may invest up to 1.5% of the net assets of the state retirement system trust fund, or approximately $1.9 billion as of June 30, 2008, in technology and high-growth investments. Board officials are currently negotiating with investment firms to make targeted investments on behalf of the board. SBA officials report that they plan to follow best practice guidelines developed from other states’ experiences with similar programs. OPPAGA will issue a report in January 2010 on the board’s progress in making these investments.

Which Government Program Summaries contain related information?

State Board of Administration (SBA)

What other OPPAGA-related materials are available?

  • Report No. 16-08 Florida Growth Fund Investments Have Provided Over $200 Million in Distributions to the FRS; Fund Managers Continue to Seek New Investment Opportunities,published in December 2016.
  • Report No. 16-06 Over the Long-term, Major SBA Fund Returns Exceeded Market-Based Investment Benchmarks; FRS Pension Fund Multi-Year Performance Similar to Other States.,published in November 2016.
  • Report No. 15-14 Florida Growth Fund Expands and Diversifies Investments,published in December 2015.
  • Report No. 15-05 FRS Pension Plan Investment Returns Are Similar to Other Public Pension Funds; SBA Continues to Increase Alternative Investments,published in March 2015.
  • Report No. 14-11 Florida Growth Fund Investments Continue to Add Jobs and Provide Distributions to the FRS,published in December 2014.
  • Report No. 13-11 Florida Growth Fund Investments Add Jobs and Result in Distributions to the Retirement Fund,published in December 2013.
  • Report No. 13-05 FRS Pension Plan Investment Returns Are Similar to Those of Other States; SBA Is Increasing Alternative Investments,published in February 2013.
  • Report No. 13-01 Florida Growth Fund Investments Have Increased and Recipients Report Employment Growth and Expanded Business Activities,published in January 2013.
  • Report No. 11-26 Florida Growth Fund Investments Increase; Additional Data Needed to Estimate Economic Benefit,published in December 2011.
  • Report No. 11-10 Compared to Other States, the Pension Plan Is Better Funded, Incurs Lower Investment Fees, and Has Fewer Trustees; Investment Returns Are Average,published in February 2011.
  • Report No. 10-60 The Florida Growth Fund Added Investments in 2010, but It Is Still Too Early to Assess Total Economic Impact,published in December 2010.
  • Report No. 10-15 Several Options Are Available for Modifying the Florida Retirement System’s Class Structure to Reduce System Costs,published in January 2010.
  • Report No. 09-45 SBA Has Implemented the Florida Growth Fund; Economic Impact of Investments May Not Be Apparent for Several Years,published in December 2009.
  • Report No. 09-16 Retirement Fund Investments Decline with the Economy But Still Meet Several Performance Benchmarks; SBA Must Improve Communication with Its Stakeholders,published in March 2009.
  • Report No. 06-68 Progress Report: Use of Investment Returns Has Increased; Plan for Addressing Associated Risks Should Be Documented, published in November 2006.
  • Report No. 04-70 OPPAGA Report: Multi-Year Projections of Retirement System Funding Should Be Provided to the Legislature, published in October 2004.
  • Report No. 02-37 Program Review: While State Board of Administration Investments Perform Relatively Well, the SBA Should Reassess Planned Expansion of Alternative Investments, published in June 2002.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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