Sec.3-27a-6a. Designated surplus reserve

(a) The Short-Term Investment Fund shall maintain a designated surplus reserve for possible use in cases of portfolio losses.

(b) Daily allocations to the designated surplus reserve shall be paid from investment income prior to determining Participant interest, and shall equal, on an annualized basis, one-tenth of one percent of the fund's investments until the reserve equals, at a minimum, one percent of investments; except, the Treasurer may maintain a larger reserve when, in the Treasurer’s discretion, adverse market conditions warrant such action.

(c) If net losses significant to the aggregate portfolio occur, they shall be charged against the designated surplus reserve in accordance with the Treasurer’s investment policy. If losses are subsequently recovered, net recoveries shall be credited to the reserve.

(d) If losses exceed the amount then in the designated surplus reserve, the excess losses shall be charged to Participants’ accounts pro rata.

(Effective December 1, 1996; Amended September 13, 2016)