The bill amends the Public Employee Retirement System Investment Act to enhance the responsibilities of investment fiduciaries and clarify the investment process. It establishes that the act supersedes any prior investment authority from other laws and allows fiduciaries of defined contribution plans to offer six or more investment options directed by participants. The legislation emphasizes that fiduciaries must act solely in the pecuniary interest of participants and beneficiaries, ensuring decisions are based on financial factors rather than social or political objectives. Additionally, it introduces comprehensive reporting requirements, including annual reports on system assets, liabilities, investment performance, and expenditures, while defining terms like "appropriate consideration" and "pecuniary factor" to guide fiduciaries in their evaluations.

The bill also includes amendments that prohibit investment fiduciaries from investing in debt instruments from countries designated as state sponsors of terror and establishes conditions for large sponsored systems to pay for travel expenses outside the state. It mandates divestment from hazardous waste deep disposal well facilities under specific circumstances within 180 days of triggering events. To enhance transparency and accountability, the bill requires representatives from the office of retirement services to testify before legislative committees and mandates the posting of executive summaries of annual reports on the Department of Treasury's website. Overall, the amendments aim to ensure fiduciaries act based solely on financial considerations and improve public oversight of investment decisions.

Statutes affected:
Senate Introduced Bill: 38.1133