Section 18.01 - General Requirement(1) Every board shall file a statement of investment objectives with the Public Employee Retirement Administration Commission.(2) Before designing an investment program and writing a statement of objectives, every board shall consider its most recent actuarial valuation, meet with the board's consultant, if any, and address the following questions: (a) What stage of growth best describes the system: start-up, early growth, sustained growth, maturity, or decline?(b) What are the estimates of growth in the workforce, benefit increases, inflation and other economic factors?(c) What is the projected level of cash payments to beneficiaries for the next 20 years (the "liabilities stream")?(d) What assumption regarding "real investment return" (total return less wage inflation rate) is used by the actuary to make funding estimates?(e) Is the system underfunded?(f) What has been the history of employer and employee payments into the system? Is there any reason to expect that these will change?(g) What is the long-term demographic forecast for the system area? What may affect the tax base including such factors as population and business growth, rate of growth or decline and condition of housing stock and industrial facilities?(3) Asset allocation decisions shall be made based on a liability-sensitive approach which tailors asset allocation for the portfolio to the system's liability profile. Boards shall conduct an initial study of the asset universe and establish the asset allocation in a manner that recognizes the financial structure of the system. Asset allocation decisions shall establish target levels and ranges for asset percentages.