Starting February 1, Dr. David Bronner, the CEO of the Retirement Systems of Alabama, could no longer use his proxy to sign off on investments on behalf of a committee of the Employees Retirement System Board.
The Employees Retirement System Board of Control is one of two governing boards of the RSA, and it approved a resolution at a December meeting that effectively ended the practice of Bronner signing off on investment decisions on behalf of the ERS Board's Investment Committee.
In a statement, Jackie Graham, the vice-chair of the ERS and Director of the State Personnel Department said, "It is my understanding (RSA Staff) have not always had the proxies from the investment committee members so they will return to procedures used during those periods."
RSA staff which include Certified Financial Analysts and MBAs make decisions on behalf of the thousands of ERS members. Trades and investment decisions will still be made on a regular basis by RSA staff and Investment Committee members will receive digital notification of happenings and weekly updates.
Leura Canary, Chief Legal Counsel at RSA, explained that there was nothing improper about Bronner's use of proxies when it came to investment decisions, and added that the Investment Committee has the right to adjust procedures as it sees necessary.
"They were allowing Bronner to sign on their behalf which was likely more a of logistical matter because it was all done before email," Canary said.
Stay tuned to WSFA 12 News for more on what this means for investments in the $10 billion fund.
Copyright 2014 WSFA 12 News. All rights reserved.