                                 CODE OF VIRGINIA

STANDARD OF CARE; INVESTMENT AND ADMINISTRATION OF THE PLAN (§ 23.1-706)

A. In acquiring, investing, reinvesting, exchanging, retaining, selling, and
managing property for the benefit of the Plan, the board, and any person,
investment manager, or committee to whom the board delegates any of its
investment authority, shall act as trustee and shall exercise the judgment of
care under the circumstances then prevailing that persons of prudence,
discretion, and intelligence exercise in the management of their own affairs,
not in regard to speculation but to the permanent disposition of funds,
considering the probable income and the probable safety of their capital.
			If the annual accounting and audit required by &#xA7; 23.1-710 reveal that
there are insufficient funds to ensure the actuarial soundness of the Plan, the
board may adjust the terms of subsequent prepaid tuition contracts, arrange
refunds for current purchasers to ensure actuarial soundness, or take such other
action the board deems appropriate.

B. The assets of the Plan shall be preserved, invested, and expended solely
pursuant to and for the purposes of this chapter and shall not be loaned or
otherwise transferred or used by the Commonwealth for any other purpose. Within
the standard of care set forth in subsection A, the board and any person,
investment manager, or committee to whom the board delegates any of its
investment authority, may acquire and retain any kind of property and any kind
of investment, including (i) debentures and other corporate obligations of
foreign or domestic corporations; (ii) common or preferred stocks traded on
foreign or domestic stock exchanges; (iii) not less than all of the stock or 100
percent ownership of a corporation or other entity organized by the board under
the laws of the Commonwealth for the purposes of acquiring and retaining real
property that the board may acquire and retain under this chapter; and (iv)
securities of any open-end or closed-end management type investment company or
investment trust registered under the federal Investment Company Act of 1940, as
amended, including investment companies or investment trusts that, in turn,
invest in the securities of such investment companies or investment trusts that
persons of prudence, discretion, and intelligence acquire or retain for their
own account. The board may retain property properly acquired without time
limitation and without regard to its suitability for original purchase.
			All provisions of this subsection shall also apply to the portion of the Plan
assets attributable to savings trust account contributions and the earnings on
such contributions.

C. The selection of services relating to the operation and administration of the
Plan, including contracts or agreements for the management, purchase, or sale of
authorized investments or actuarial, recordkeeping, or consulting services, are
governed by the standard of care set forth in subsection A and are not subject
to the provisions of the Virginia Public Procurement Act (&#xA7; 2.2-4300 et
seq.).

D. No board member or person, investment manager, or committee to whom the board
delegates any of its investment authority who acts in accordance with the
standard of care set forth in subsection A shall be held personally liable for
losses suffered by the Plan on investments made pursuant to this chapter.

E. To the extent necessary to lawfully administer the Plan and in order to
comply with federal, state, and local tax reporting requirements, the Plan may
obtain all necessary social security account or tax identification numbers and
such other data as the Plan deems necessary for such purposes, whether from a
contributor, a purchaser, or another state agency.

F. This section shall not be construed to prohibit the Plan&#8217;s investment,
by purchase or otherwise, in bonds, notes, or other obligations of the
Commonwealth or its agencies and instrumentalities.

HISTORY: 1994, c. 661, § 23-38.80; 1996, c. 508; 1997, cc. 785, 861; 1999, cc.
485, 518; 2000, cc. 382, 400; 2009, cc. 827, 845; 2015, cc. 227, 311; 2016, c.
588; 2019, cc. 803, 804.