Pennsylvania Statutes Title 24 Pa.C.S.A. Education § 8546. Requirements and limitations of firms

(a) Equity, commodity or absolute return exposure firms.--Firms considered to provide equity, commodity or absolute return exposure may not have more than $1,500,000,000 of total assets under management when hired. If the total assets under management exceed $3,000,000,000, the investment managers shall be terminated in a reasonable period of time.

(b) Fixed-income exposure firms.--Firms considered to provide fixed-income exposure shall have no more than $3,000,000,000 of total assets under management when hired. If the total assets under management exceeds $6,000,000,000, existing investment managers shall be terminated within a reasonable period of time.

(c) Performance-based fee accounts.--For performance-based fee accounts, a manager must exceed both a hurdle rate and a high water mark before the manager can earn the performance-based fee.

(d) Transition to main fund.--Investment managers hired into the program may continue in the program for a period of at least three years, but not more than five years. If the investment manager generates strong risk adjusted returns, the Investment Office shall use best efforts to make a place in the main fund for the investment manager. The Investment Office shall consider things such as the investment manager's assets under management and projected ability to continue generating strong risk adjusted returns in the future.