The PRB adopted Texas Administrative Code, Chapter 609 (Public Retirement System Investment Expense Reporting). The rules expand on Texas Government Code §802.103, which requires most retirement systems’ annual financial reports (AFRs) to include a listing, by asset class, of all direct and indirect investment fees and commissions paid by the retirement system during its previous fiscal year for the sale, purchase, or management of system assets.
The information is first required to be included in the 2020 fiscal year AFRs for systems with fiscal years ending in September. Please see the reporting schedule below for the first reporting period.
Initial Reporting Schedule:
| Fiscal Year | Fiscal Year End Date | AFR Due to the PRB |
| 2020 | September 30, 2020 | April 29, 2021 |
| 2020 | October 31, 2020 | May 30, 2021 |
| 2020 | December 31, 2020 | July 30, 2021 |
| 2021 | February 28, 2021 | September 27, 2021 |
| 2021 | June 30, 2021 | January 27, 2022 |
| 2021 | July 31, 2021 | February 27, 2022 |
| 2021 | August 31, 2021 | March 30, 2022 |
All subsequent AFRs are required to include investment expense disclosures.
Optional Template for Reporting Investment Expenses in Annual Financial Reports:
The PRB has developed a template to assist plans with reporting investment expenses in their AFRs. The template is an optional tool developed to assist plans. Plans are not required to use this format to comply with the requirements of §802.103, nor are they asked to submit templates to the PRB.
Please note, §802.103 requires this detailed information about investment managers, fees, and commissions be included within the AFR. The PRB is unable to consider AFRs without the required investment expense disclosures compliant with reporting requirements.
Please contact us if you need any assistance.
