The bill amends the Public Employee Retirement System Investment Act by updating Section 13 to clarify the roles and responsibilities of investment fiduciaries managing public employee retirement system assets. Key changes include the introduction of the term "pecuniary interest," which mandates that fiduciaries act solely in the financial interest of participants and beneficiaries. The bill specifies that fiduciaries must consider only pecuniary factors when evaluating investments and outlines criteria for appropriate investment considerations, such as diversification, liquidity, and projected returns. It also requires the publication of detailed annual reports on investment performance, expenditures, and travel funded by the system.

Additionally, the bill imposes new reporting requirements for large sponsored systems, including a tabulation of proxy votes and limited partnerships, and establishes a budget cap for professional training and education expenses for board members. It reinforces compliance with the divestment from terror act, prohibits investments in debt instruments from state sponsors of terror, and mandates divestment from hazardous waste deep disposal well facilities under certain conditions. The Department of Treasury is required to post executive summaries of annual reports on its website, and the bill emphasizes transparency in proxy voting and public access to fiduciary meetings, restricting proxy voting authority to individuals who adhere to the unit's fiduciary obligations.

Statutes affected:
House Introduced Bill: 38.1133