The State Board of Administration (SBA) is created by the Florida Constitution as Florida’s principal independent Investment Management Organization. The SBA is primarily responsible for investing the proceeds of the Florida Retirement System Pension Plan, administering the Florida Retirement System Investment Plan, managing the Florida Hurricane Catastrophe Fund and running Florida PRIME, as well as investing the proceeds of more than 25 other funds directed to the SBA by the Florida Legislature.
The SBA is governed by a three-member Board of Trustees (Trustees), comprised of the Governor as Chair, the Chief Financial Officer and the Attorney General. In concert with legislative directives, the Trustees have ultimate oversight. They delegate authority to the Executive Director and Chief Investment Officer to carry out the strategic direction in the day-to-day financial investments and operations of the organization. The Executive Director and CIO manages approximately 200 professional investment and administrative support staff.
The SBA does not receive an annual appropriation of tax dollars through the legislative appropriations process, it operates pursuant to an administrative fee on assets under management approved by the Trustees in an annual budget. Operating under this minimal fee, the SBA is able to provide; investment management services for the Florida Retirement System Pension Plan where $2 out of every $3 in benefits paid to a retired public employee comes from investment earnings – not tax payer dollars, a second retirement option to public employees with administration the Florida Retirement System Investment Plan – one of the nation’s biggest and most successful defined contribution style retirement plans, Florida PRIME – the lowest cost investment vehicle for surplus government funds in the state, administration of the Florida Hurricane Catastrophe Fund which remains at or near its capital capacity, and efficient management of all other assets under management.
The SBA is able to accomplish this while always keeping our beneficiaries’ interests at the forefront of our actions. As fiduciaries, the SBA is required to invest assets and discharge its duties in accordance with Florida law and in compliance with fiduciary standards of care. Under state law, the SBA and its staff are obliged to make sound investment management decisions that are solely in the interest of investment clients and from the perspective of subject-matter experts acting under the highest standards of professionalism and care, not merely as well-intentioned persons acting in good faith.