Nebraska Administrative Code Topic - INVESTMENT COUNCIL
Here’s a refined overview of the Nebraska Administrative Code – Topic: Investment Council (Title 213):
📘 Title 213 – Nebraska Investment Council
Scope: Establishes rules and procedures for the Council concerning investment of state funds (e.g., retirement systems, endowments, Nebraska educational savings, Operating Investment Pool, etc.) (nic.nebraska.gov).
Chapter 1: Focuses on “Procedures for Distribution of Funds to Banks, Capital‑Stock Financial Institutions, and Qualifying Mutual Financial Institutions” (regulations.justia.com).
🏦 Chapter 1 § 002 – Interest Rates & Payments
Monthly Rate Setting: The state investment officer sets the interest rate on the first working day of each month.
Calculation Basis:
Average yield on U.S. Treasury Notes/Bonds maturing in one year.
Average yield on federal agency securities (FHLB, FFCB, Fannie Mae, Freddie Mac) similarly matured.
Data Source & Methodology: Uses prior month-end Bloomberg yields; interest computed on 360‑day basis; payable on last business day (or next) (law.cornell.edu).
Recent Amendments: Updated effective 2/18/2020 & 5/26/2020 (law.cornell.edu).
⚖️ Statutory Authority & Governance
Under Neb. Rev. Stat. § 85‑1804, the Investment Council has the statutory power to adopt rules for prudent investment of trust assets and to oversee selection of investment managers, setting guidelines, and approving fees (nebraskalegislature.gov).
Member Qualifications: Council appointees (post-July 1, 2005) must have at least 7 years’ investment experience (nebraskalegislature.gov).
Organizational Reviews: Under Neb. Rev. Stat. § 72‑1278, the Council must commission periodic independent reviews to assess its statutory and regulatory structures and recommend necessary improvements; current as of January 1, 2024 (codes.findlaw.com).
🔗 Additional References
The Nebraska Investment Council publishes its investment policies, rules, and relevant state laws on its official site, which outlines both governance and administrative policies (e.g., ethics, derivatives, proxy voting) (nic.nebraska.gov).
✅ Summary
Title 213 codifies how the Investment Council distributes funds to institutions and governs interest calculations via defined procedures.
Statutory backing underpins its mandate, authority, investment prudence, expertise requirements, and oversight mechanisms.
Chapter 1 § 002, a key operational regulation, standardizes monthly interest rate determination.
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