Senate Bill No. by Senator Miguez aims to establish the Public Pension Fiduciary Duty Act, which mandates that fiduciaries of public retirement systems make investment decisions based solely on financial factors. The bill specifies that fiduciaries must prioritize the financial interests of participants and beneficiaries, focusing exclusively on providing financial benefits and managing reasonable administrative expenses. It explicitly prohibits fiduciaries from considering any actions or factors that aim to advance social, political, or governance agendas in their investment decisions.

The proposed legislation also outlines the enforcement mechanisms, allowing the attorney general to take action against fiduciaries who violate these duties. Additionally, it imposes penalties, including the obligation for violators to pay damages equivalent to three times the amount received for their services from the public retirement system. The bill is set to take effect on August 1, 2024, and includes definitions and guidelines to ensure compliance with the new fiduciary standards.