Pennsylvania Statutes Title 24 P.S. Education § 6901.307. Investment policies and guidelines

(a) General rule.--The policies governing the investment of the Tuition Account Guaranteed Savings Program Fund shall be directed to obtaining sufficient income to meet the fund's obligations under this chapter, maintaining necessary reserves and covering operating expenses. The policies governing the investment of the Tuition Account Investment Program Fund shall be directed to providing for an appropriate balance of risk, liquidity and return commensurate with the management of a prudent investor. With regard to each of the funds, the department, its investment managers, program managers and trustees shall have the authority to invest and reinvest the funds in all lawful investments.

(b) Investment manager and trustee.--The department may contract with one or more persons or other legal entities to serve as investment managers, program managers and trustees to the department on behalf of either or both of the tuition account programs. If the department contracts with investment managers, program managers or trustees in order to fulfill the objectives of the tuition account programs, the investment managers, program managers and trustees shall work with the department to create an investment program or programs, to develop investment portfolios and to supervise investments and the investment programs selected. If the department contracts with investment managers, program managers and trustees, the department may require that the investment managers, program managers and trustees agree, based on actuarial projections of program costs and expenses supplied by the department, to meet any obligations of the Tuition Account Guaranteed Savings Program Fund if, as a result of the imprudent selection or supervision of investments or the investment program by the investment managers, program managers or trustees, the Tuition Account Guaranteed Savings Program Fund is not fiscally sufficient to meet the fund's obligations under this chapter. The department, through contract, may also impose liability on investment managers, program managers and trustees for losses incurred by the Tuition Account Guaranteed Savings Program Fund, the Tuition Account Investment Program Fund or the account owners as a result of the investment managers', program managers' and trustees' negligent, fraudulent or imprudent selection or supervision of investments.