Cities and counties have the option to invest a portion of their funds in index mutual funds or with the State Board of Investment (SBI) in a long-term equity investment account administered by the PERA.
Eligibility
This option applies to cities and counties with a population of more than 100,000 or those that had their most recently issued general obligation bonds rated in the highest category by a national bond rating agency. In addition, this applies to self-insurance pools including the League of Minnesota Cities Insurance Trust, the Minnesota School Boards Association Insurance Trust, the Minnesota Association of Townships Insurance and Bond Trust, and the Minnesota Counties Intergovernmental Trust.
This type of account is specific to invested assets that are held for long-term capital plans or long-term obligations. The amount invested cannot exceed 15% of the sum of unassigned cash, cash equivalents, deposits, and investments. Investments are also limited to mutual funds indexed to the S&P 500, the Dow Jones U.S. Total Stock Market Index, or investments with SBI under their terms and conditions. Before investing in the expanded list of investment, the governing body of the municipality must adopt a resolution acknowledging the risks.
Initiate the Process
To establish a long-term equity investment account using PERA as the administrator, please sign and return two copies of the account agreement and one copy of the contact information form below. We will then send you wiring instructions and a signed copy of the agreement.
