The proposed legislation, known as the "State Retirement Plan Protection Act," aims to safeguard the financial interests of state pension plan participants by prohibiting the subordination of these interests to social, political, or ideological objectives when investing pension assets or exercising shareholder rights. The bill amends Minnesota Statutes 2022, specifically sections 11A.04 and 356A.01, and introduces new provisions that clarify the responsibilities of the State Board of Investment. Notably, it mandates that investment decisions must be based solely on "pecuniary factors," which are defined as factors expected to materially affect the risk or return of an investment, explicitly excluding any nonpecuniary considerations.

Additionally, the bill establishes that when exercising shareholder rights, the State Board of Investment must also prioritize financial interests over nonpecuniary objectives. The attorney general is granted the authority to take legal action against any violations of these provisions. This legislation seeks to ensure that the management of state pension funds remains focused on maximizing returns for beneficiaries without being influenced by external ideological pressures.

Statutes affected:
Introduction: 11A.04, 356A.01, 356A.04