HomeMy WebLinkAbout22 Idle Cash Investment Policy TAB 22
IDLE CASH
INVESTMENT POLICY
August 15 , 2006
POLICY FOR INVESTMENT OF IDLE CASH FOR
EMPLOYEES RETIREMENT SYSTEM
AND
POLICE AND FIRE RETIREMENT SYSTEM
The City of Lansing retains some cash for the retirement systems in order to reimburse the
General Fund for monthly charges such as retirement payroll. These monies are invested at
Comerica Bank in a"J" fund which currently earns about 4,62%. Money is drawn monthly to
cover expenses. The City's proposal is to let Comerica invest the account in commercial paper,
which is making over 4.90% currently. This should earn about$20,000 to $25,000 more for the
combined systems for the year. Because the monthly payment to the General Fund is pretty
stable, it should be easy to ladder out the commercial paper to meet cash flow obligations.
Adopted by Police and Fire RS on August 15,2006 by unanimous vote
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