GO-TIME: Insurance Department Changes in Investment Managers Will Save $2.7 Million Over Five Years
August 29, 2016
Harrisburg, PA — Insurance Commissioner Teresa Miller today announced changes in investment managers for two funds which, through lower management fees, will save Pennsylvanians $2.7 million over the next five years, as part of Governor Wolf’s GO-TIME initiative to reduce costs and improve efficiency in government.
“By moving the management of funds invested through the Underground Storage Tank Indemnification Fund (USTIF) and the Workers Compensation Security Fund (WCSF) to lower cost fund managers, who already have a proven track record of producing positive results, we will save businesses who pay into these funds and allow more money to be put toward the purpose of these programs, to protect our environment and provide security for workers injured on the job,” Commissioner Miller said.
The fees charged for this management will drop from .7791 to .1849%, saving Pennsylvanians an estimated $560,000 per year over the next five fiscal years.
“Governor Wolf’s commitment to government that works includes seeing that Commonwealth funds are invested to produce the maximum return possible with the lowest cost, while making sure the funds are available to provide the services for which they are needed,” Commissioner Miller said. “The governor’s leadership encouraged our staff charged with overseeing these funds to seek out a better deal on managing these investments, and that has now come to fruition.”
The USTIF is funded by fees assessed to owners, operators and installers of underground storage tanks. In the event of a spill or leak from the tank, USTIF will make payments for corrective actions to clean up any affected soils or groundwater. The WCSF is funded by assessments paid by insurance companies, to pay workers’ compensation claims when an insurance company goes into liquidation, providing a safety net for injured workers.
The Governor’s Office of Transformation, Innovation, Management and Efficiency (GO-TIME) is working to modernize government operations in order to reduce costs and improve services.
GO-TIME works with agencies to share resources, collaborate and engage employees in transformation. During the 15-16 fiscal year, state agencies saved over $156 million.
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