HB 1375 — An Act amending Titles 24 (Education) and 71 (State Government) of the Pennsylvania Consolidated Statutes, in administration and miscellaneous provisions, further providing for administrative duties of the Public School Employees' Retirement Board; and, in administration, funds, accounts and general provisions, further providing for administrative duties of the State Employees' Retirement Board.

PRINTER'S NO.   1571

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                             HOUSE BILL
                             No. 1375
                                                    Session of
                                                      2025

     INTRODUCED BY B. MILLER, KUZMA, GREINER, KAUFFMAN, GLEIM,
        M. JONES, PICKETT, BARGER, HAMM, MENTZER, ZIMMERMAN, GILLEN,
        D'ORSIE, DIAMOND, FEE, STAMBAUGH, JAMES, ROAE, BANTA,
        SCHLEGEL, RADER, OWLETT, SCHMITT, WENTLING, KLUNK, BONNER,
        T. JONES, MOUL, STAATS, COOPER, ROWE, TWARDZIK, SCIALABBA,
        FREEMAN, FLEMING, SOLOMON, GAYDOS, FRITZ, ECKER, LEADBETER,
        FRANKEL AND SANCHEZ, MAY 2, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 2, 2025


                                         AN ACT
 1   Amending Titles 24 (Education) and 71 (State Government) of the
 2      Pennsylvania Consolidated Statutes, in administration and
 3      miscellaneous provisions, further providing for
 4      administrative duties of the Public School Employees'
 5      Retirement Board; and, in administration, funds, accounts and
 6      general provisions, further providing for administrative
 7      duties of the State Employees' Retirement Board.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.         Section 8502(e)(1), (2), (3), (4) and (5) of
11   Title 24 of the Pennsylvania Consolidated Statutes are amended
12   and the section is amended by adding a subsection to read:
13   § 8502.    Administrative duties of board.
14      * * *
15      (e)    Records.--
16             (1)   The following shall apply:
17                   (i)    The board shall [keep a] livestream all public
18             board and committee meetings and post an unedited video
 1        and written record of all [its] such public proceedings
 2        which shall be accessible [to the public] on its publicly
 3        accessible Internet website, including nonconfidential
 4        materials presented to the board, except as otherwise
 5        provided in this part or by other law. Video and records
 6        shall remain online for a period of at least three years
 7        and shall be maintained for a period of at least seven
 8        years and thereafter shall be maintained in accordance
 9        with applicable records retention schedules.
10              (ii)    The Office of Administration shall promptly
11        revise its management directives relating to record
12        management policies to conform with the requirements of
13        this paragraph and shall provide public notice of the
14        requirements of this subsection by publishing the
15        requirements on its publicly accessible Internet website
16        and shall transmit the requirements to the Legislative
17        Reference Bureau for publication in the next available
18        issue of the Pennsylvania Bulletin.
19        (2)   Any record[, material or data] received, prepared,
20    used or retained by the board or its employees, investment
21    professionals or agents relating to an investment, to the
22    extent not otherwise excluded from access, shall [not]
23    constitute a [public] record subject to public access under
24    the act of February 14, 2008 (P.L.6, No.3), known as the
25    Right-to-Know Law, [if] unless, in the reasonable judgment of
26    the board, [the] it is found that access would:
27              (i)    in the case of an alternative investment or
28        alternative investment vehicle involve the release of
29        sensitive investment or financial information relating to
30        the alternative investment or alternative investment

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 1        vehicle which the fund or trust was able to obtain only
 2        upon agreeing to maintain its confidentiality;
 3              (ii)    cause substantial competitive harm to the
 4        person from whom sensitive investment or financial
 5        information relating to the investment was received; or
 6              (iii)    have a substantial detrimental impact on the
 7        value of an investment to be acquired, held or disposed
 8        of by the fund or trust, or would cause a breach of the
 9        standard of care or fiduciary duty set forth in this
10        part.
11        (3)     The following apply:
12              (i)    The sensitive investment or financial
13        information excluded from access under paragraph (2)(i),
14        to the extent not otherwise excluded from access, shall
15        constitute a [public] record subject to public access
16        under the Right-to-Know Law once the board is no longer
17        required by its agreement to maintain confidentiality.
18              (ii)    The sensitive investment or financial
19        information excluded from access under paragraph (2)(ii),
20        to the extent not otherwise excluded from access, shall
21        constitute a [public] record subject to public access
22        under the Right-to-Know Law once:
23                     (A)   the access no longer causes substantial
24              competitive harm to the person from whom the
25              information was received; or
26                     (B)   the entity in which the investment was made
27              is liquidated;
28                     whichever is later.
29              (iii)    The sensitive investment or financial
30        information excluded from access under paragraph (2)

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 1        (iii), to the extent not otherwise excluded from access,
 2        shall constitute a [public] record subject to public
 3        access under the Right-to-Know Law once:
 4                     (A)   the access no longer has a substantial
 5              detrimental impact on the value of an investment of
 6              the fund or trust and would not cause a breach of the
 7              standard of care or fiduciary duty set forth in this
 8              part; or
 9                     (B)   the entity in which the investment was made
10              is liquidated;
11                     whichever is later.
12        (4)     [Except for the provisions of paragraph (3), nothing
13    in this subsection shall be construed to designate any
14    record, material or data received, prepared, used or retained
15    by the board or its employees, investment professionals or
16    agents relating to an investment as a public record subject
17    to public access under the Right-to-Know Law.] (Reserved).
18        (5)     Notwithstanding the provisions of this subsection,
19    the following information regarding an alternative investment
20    vehicle shall be subject to public access under the Right-to-
21    Know Law:
22              (i)    The name, address and vintage year of the
23        alternative investment vehicle.
24              (ii)    The identity of the manager of the alternative
25        investment vehicle.
26              (iii)    The dollar amount of the commitment made by
27        the system or plan to the alternative investment vehicle.
28              (iv)    The dollar amount of cash contributions made by
29        the system or plan to the alternative investment vehicle
30        since inception.

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 1              (v)     The dollar amount of cash distributions received
 2          by the system or plan from the alternative investment
 3          vehicle since inception.
 4              (vi)    The gross and net internal rate of return of
 5          the alternative investment vehicle since inception,
 6          provided that the system or plan shall not be required to
 7          disclose the gross or net internal rate of return under
 8          circumstances in which, because of the limited number of
 9          portfolio assets remaining in the alternative investment
10          vehicle, the disclosure could reveal the values of
11          specifically identifiable remaining portfolio assets to
12          the detriment of the alternative investment.
13              (vii)     The aggregate value of the remaining portfolio
14          assets attributable to the system's or plan's investment
15          in the alternative investment vehicle, provided that the
16          system or plan shall not be required to disclose the
17          value under circumstances in which, because of the
18          limited number of portfolio assets remaining in the
19          alternative investment vehicle, the disclosure could
20          reveal the values of specifically identifiable remaining
21          portfolio assets to the detriment of the alternative
22          investment.
23              (viii)    The dollar [amount] amounts of total
24          management fees [and], costs and expenses paid to [the]
25          or retained by an alternative investment vehicle [by the
26          system or plan] on an annual fiscal year-end basis[.],
27          itemized by gross management, carried interest and other
28          expenses.
29          * * *
30    (s)   Additional reporting requirements.--

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 1        (1)   In addition to the requirements under this section,
 2    the board shall prepare and have published on its publicly
 3    accessible Internet website and electronically submit copies
 4    to all members of the General Assembly of the following
 5    information within six months after the end of the system's
 6    fiscal year:
 7              (i)    The net of fees performance of all investments
 8        over the most recent 1-, 3-, 5-, 10-, 15- and 20-year
 9        periods.
10              (ii)    The performance of all investments by asset
11        class and manager over each time horizon, both gross and
12        net of fees compared to benchmarks being reported for all
13        investments made commencing prospectively from the
14        effective date of this subsection and with the gross
15        returns for all investments made retroactively for the
16        five-year period from the effective date of this
17        subsection using best efforts, unless the records are no
18        longer available.
19              (iii)    An itemized listing of the fees and expenses
20        paid to or retained by all investment managers for the
21        applicable reporting years, separated by base management
22        fee, profit share, performance fees, carried interest and
23        incentive fees, and informed by the best practices as
24        recommended by recognized industry standards, including,
25        but not limited to, the Institutional Limited Partners
26        Association Fee Transparency Initiative. The board shall
27        disclose in the report which industry standards were used
28        and whether any changes to industry standards have been
29        made.
30              (iv)    All travel or other expenses incurred by staff

20250HB1375PN1571                   - 6 -
 1             of the system or plan and paid for by an external
 2             investment manager, fund or consultant.
 3             (2)   As used in this subsection, the following words and
 4      phrases shall have the meanings given to them in this
 5      paragraph unless the context clearly indicates otherwise:
 6             "Carried interest."      Any share of profits from an
 7      alternative investment vehicle that is distributed to a fund
 8      manager, general partner or related party, including
 9      allocations of alternative investment vehicle profits
10      received by a fund manager in consideration of having waived
11      fees that the fund manager might otherwise have been entitled
12      to receive.
13             "Institutional Limited Partners Association Fee
14      Transparency Initiative."        An initiative created by the
15      Institutional Limited Partners Association to establish
16      guidelines for reporting fees, expenses and compliance
17      disclosures regarding investments.
18      Section 2.         Section 5902(e)(1), (2), (3) and (4) of Title 71
19   are amended, the subsection is amended by adding a paragraph and
20   the section is amended by adding a subsection to read:
21   § 5902.    Administrative duties of the board.
22      * * *
23      (e)    Records.--
24             (1)   [The board shall keep a record of all its
25      proceedings which shall be open to access by the public,
26      except as otherwise provided in this part or by other law.]
27      The following shall apply:
28                   (i)    The board shall livestream all public board and
29             committee meetings and post an unedited video and written
30             record of all such public proceedings, which shall be

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 1        accessible on its publicly accessible Internet website,
 2        including nonconfidential materials presented to the
 3        board, except as otherwise provided in this part or by
 4        other law. Video and records shall remain online for a
 5        period of at least three years and shall be maintained
 6        for a period of at least seven years and thereafter shall
 7        be maintained in accordance with applicable records
 8        retention schedules.
 9              (ii)    The Office of Administration shall promptly
10        revise its management directives relating to record
11        management policies to conform with the requirements of
12        this paragraph and shall provide public notice of the
13        requirements of this subsection by publishing the
14        requirements on its publicly accessible Internet website
15        and shall transmit the requirements to the Legislative
16        Reference Bureau for publication in the next available
17        issue of the Pennsylvania Bulletin.
18        (2)   Any record[, material or data] received, prepared,
19    used or retained by the board or its employees, investment
20    professionals or agents relating to an investment, to the
21    extent not otherwise excluded from access, shall [not]
22    constitute a [public] record subject to public access under
23    the act of February 14, 2008 (P.L.6, No.3), known as the
24    Right-to-Know Law, [if] unless, in the reasonable judgment of
25    the board, [the] it is found that access would:
26              (i)    in the case of an alternative investment or
27        alternative investment vehicle, involve the release of
28        sensitive investment or financial information relating to
29        the alternative investment or alternative investment
30        vehicle which the fund or trust was able to obtain only

20250HB1375PN1571                   - 8 -
 1        upon agreeing to maintain its confidentiality;
 2              (ii)    cause substantial competitive harm to the
 3        person from whom sensitive investment or financial
 4        information relating to the investment was received; or
 5              (iii)    have a substantial detrimental impact on the
 6        value of an investment to be acquired, held or disposed
 7        of by the fund or trust or would cause a breach of the
 8        standard of care or fiduciary duty set forth in this
 9        part.
10        (3)     The following apply:
11              (i)    The sensitive investment or financial
12        information excluded from access under paragraph (2)(i),
13        to the extent not otherwise excluded from access, shall
14        constitute a [public] record subject to public access
15        under the Right-to-Know Law once the board is no longer
16        required by its agreement to maintain confidentiality.
17              (ii)    The sensitive investment or financial
18        information excluded from access under paragraph (2)(ii),
19        to the extent not otherwise excluded from access, shall
20        constitute a [public] record subject to public access
21        under the Right-to-Know Law once:
22                     (A)   the access no longer causes substantial
23              competitive harm to the person from whom the
24              information was received; or
25                     (B)   the entity in which the investment was made
26              is liquidated;
27        whichever is later.
28              (iii)    The sensitive investment or financial
29        information excluded from access under paragraph (2)
30        (iii), to the extent not otherwise excluded from access,

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 1        shall constitute a [public] record subject to public
 2        access under the Right-to-Know Law once:
 3                     (A)   the access no longer has a substantial
 4              detrimental impact on the value of an investment of
 5              the fund or trust and would not cause a breach of the
 6              standard of care or fiduciary duty set forth in this
 7              part; or
 8                     (B)   the entity in which the investment was made
 9              is liquidated;
10        whichever is later.
11        (4)     [Except for the provisions of paragraph (3), nothing
12    in this subsection shall be construed to designate any
13    record, material or data received, prepared, used or retained
14    by the board or its employees, investment professionals or
15    agents relating to an investment as a public record subject
16    to public access under the Right-to-Know Law.] (Reserved).
17        (4.1)     Notwithstanding the provisions of this subsection,
18    the following information regarding an alternative investment
19    vehicle shall be subject to public access under the Right-to-
20    Know Law:
21              (i)    The name, address and vintage year of the
22        alternative investment vehicle.
23              (ii)    The identity of the manager of the alternative
24        investment vehicle.
25              (iii)    The dollar amount of the commitment made by
26        the system or plan to the alternative investment vehicle.
27              (iv)    The dollar amount of cash contributions made by
28        the system or plan to the alternative investment vehicle
29        since inception.
30              (v)    The dollar amount of cash distributions received

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 1          by the system or plan from the alternative investment
 2          vehicle since inception.
 3                (vi)    The gross and net internal rate of return of
 4          the alternative investment vehicle since inception,
 5          provided that the system or plan shall not be required to
 6          disclose the gross or net internal rate of return under
 7          circumstances in which, because of the limited number of
 8          portfolio assets remaining in the alternative investment
 9          vehicle, the disclosure could reveal the values of
10          specifically identifiable remaining portfolio assets to
11          the detriment of the alternative investment.
12                (vii)    The aggregate value of the remaining portfolio
13          assets attributable to the system's or plan's investment
14          in the alternative investment vehicle, provided that the
15          system or plan shall not be required to disclose the
16          value under circumstances in which, because of the
17          limited number of portfolio assets remaining in the
18          alternative investment vehicle, the disclosure could
19          reveal the values of specifically identifiable remaining
20          portfolio assets to the detriment of the alternative
21          investment.
22                (viii)    The dollar amounts of total management fees,
23          costs and expenses paid to or retained by an alternative
24          investment vehicle on an annual fiscal year-end basis,
25          itemized by gross management, carried interest and other
26          expenses.
27          * * *
28    (s)   Additional reporting requirements.--
29          (1)   In addition to the requirements under this section,
30    the board shall prepare and have published on its publicly

20250HB1375PN1571                     - 11 -
 1    accessible Internet website and electronically submit copies
 2    to all members of the General Assembly of the following
 3    information within six months after the end of the system's
 4    calendar year:
 5             (i)    The net of fees performance of all investments
 6        over the most recent 1-, 3-, 5-, 10-, 15- and 20-year
 7        periods.
 8             (ii)    The performance of all investments by asset
 9        class and manager over each time horizon, both gross and
10        net of fees compared to benchmarks being reported for all
11        investments made commencing prospectively from the
12        effective date of this subsection and with the gross
13        returns for all investments made retroactively for the
14        five-year period from the effective date of this
15        subsection using best efforts, unless the records are no
16        longer available.
17             (iii)    An itemized listing of the fees, costs and
18        expenses paid to or retained by all investment managers
19        for the applicable reporting years, separated by base
20        management fee, profit share, performance fees, carried
21        interest and incentive fees, and informed by the best
22        practices as recommended by recognized industry
23        standards, including, but not limited to, the
24        Institutional Limited Partners Association Fee
25        Transparency Initiative. The board shall disclose in the
26        report which industry standards were used and whether any
27        changes to industry standards have been made.
28             (iv)    All travel or other expenses incurred by staff
29        of the system or plan and paid for by an external
30        investment manager, fund or consultant.

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 1        (2)    As used in this subsection, the following words and
 2    phrases shall have the meanings given to them in this
 3    paragraph unless the context clearly indicates otherwise:
 4        "Carried interest."     Any share of profits from an
 5    alternative investment vehicle that is distributed to a fund
 6    manager, general partner or related party, including
 7    allocations of alternative investment vehicle profits
 8    received by a fund manager in consideration of having waived
 9    fees that the fund manager might otherwise have been entitled
10    to receive.
11        "Institutional Limited Partners Association Fee
12    Transparency Initiative."     An initiative created by the
13    Institutional Limited Partners Association to establish
14    guidelines for reporting fees, expenses and compliance
15    disclosures regarding investments.
16    Section 3.    This act shall apply as follows:
17        (1)    The amendment of 24 Pa.C.S. § 8502(e)(1) shall apply
18    to board meetings that occur and video, written records and
19    materials created more than 30 days after the effective date
20    of this section.
21        (2)    The amendment or addition of 24 Pa.C.S. § 8502(e)(5)
22    (vi) and (viii) and (s)(1)(iii) shall apply to contracts and
23    agreements entered into after the effective date of this
24    section.
25        (3)    The amendment of 71 Pa.C.S. § 5902(e)(1) shall apply
26    to board meetings that occur and video, written records and
27    materials created more than 30 days after the effective date
28    of this section.
29        (4)    The amendment or addition of 71 Pa.C.S. § 5902(e)
30    (4.1)(vi), (vii) and (viii) and (s)(1)(iii) shall apply to

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1     contracts and agreements entered into after the effective
2     date of this section.
3     Section 4.    This act shall take effect in 60 days.




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