Senate Bill 763 introduces new requirements for the State of Wisconsin Investment Board (SWIB) regarding the management and voting of securities ownership interests for the Wisconsin Retirement System (WRS) and the retirement systems of the City and County of Milwaukee. The bill mandates that SWIB must exercise its voting authority solely in the economic interest of WRS participants, aiming to maximize risk-adjusted investment returns. It establishes a presumption of compliance if SWIB votes in line with the recommendations of independent directors on the issuer's board. If SWIB votes contrary to these recommendations, it must conduct or obtain an economic analysis demonstrating that its vote serves the sole economic interest of WRS participants. Additionally, SWIB is prohibited from voting in ways that prioritize environmental, social, or ideological goals over the economic interests of participants.

The bill also imposes similar requirements on the retirement systems of Milwaukee County and the City of Milwaukee, ensuring they adhere to the same standards as SWIB. It allows for enforcement of these provisions by the attorney general, state treasurer, and district attorney, as well as civil actions by participants against their respective boards. Furthermore, if SWIB violates the bill's provisions, it must reduce its assessment against WRS assets by a specified percentage. The bill includes new definitions and reporting requirements, ensuring transparency and accountability in the management of retirement system assets.

Statutes affected:
Bill Text: 25.15(2)(intro.), 25.15