Bill > HB1008

Introduced Session

Pension investments. Specifies certain entities, actions taken, or factors considered to which the ESG commitment provisions do not apply. Provides that if the treasurer of state concludes that the service provider has made an ESG commitment, the treasurer of state shall provide the name of the service provider and research supporting the conclusion to the board of trustees of the Indiana public retirement system (board). Prohibits the board from making an investment decision with the purpose of influencing any social or environmental policy or attempting to influence the governance of any corporation for nonfinancial purposes. Prohibits the Indiana public retirement system (system) from making an ESG commitment with respect to system assets. Provides that in making and supervising investments of the system, the board shall discharge its duties solely in the financial interest of the participants and beneficiaries of the system for the exclusive purposes of providing financial benefits to participants and beneficiaries and defraying reasonable expenses of administering the system. Provides that the board, in accordance with certain fiduciary duties, shall make investment decisions with the primary purpose of maximizing the target rate of return on the board's investments. Prohibits the board from entering a contract or modifying, amending, or continuing a contract with a service provider that has made an ESG commitment unless taking the action violates the board's fiduciary duty to the system's participants and beneficiaries. Requires the board to continue contracting with a service provider that has made an ESG commitment if the board determines that there is not a comparable service provider to replace the service provider. Requires the board to, at least annually, tabulate and report all proxy votes made by a service provider that is not a private market fund in relation to the administration of the system. Specifies certain persons and entities that are immune from civil liability and entitled to indemnification. Requires the board to: (1) ensure that reasonable efforts are made during the due diligence process before an investment is made and in monitoring investments in the public employees' defined contribution plan, an annuity savings account for the public employees' retirement fund or the Indiana state teachers' retirement fund, the teachers' defined contribution plan, the legislators' defined contribution plan, and a private market fund to determine whether any investments would violate the requirement that the board discharge its duties solely in the financial interest of the participants and beneficiaries of the system; and (2) take appropriate action, if necessary, consistent with the board's fiduciary duties. Defines terms and makes conforming amendments.

AI Summary

Committee Categories

Ethan Manning (R)*,  David Abbott (R),  Mike Aylesworth (R),  Brad Barrett (R),  Steve Bartels (R),  Bob Behning (R),  Bruce Borders (R),  Justin Busch (R),  Becky Cash (R),  Bob Cherry (R),  John Crane (R),  Cory Criswell (R),  Kendell Culp (R),  Michelle Davis (R),  Dale DeVon (R),  Karen Engleman (R),  Randall Frye (R),  Chuck Goodrich (R),  Robb Greene (R),  Craig Haggard (R),  Bob Heaton (R),  Dave Heine (R),  Travis Holdman (R),  Matt Hostettler (R),  Chris Jeter (R),  Jack Jordan (R),  Chris Judy (R),  Joanna King (R),  Eric Koch (R),  Ryan Lauer (R),  Cindy Ledbetter (R),  Matthew Lehman (R),  Shane Lindauer (R),  Jim Lucas (R),  Chris May (R),  Peggy Mayfield (R),  Julie McGuire (R),  Doug Miller (R),  Bob Morris (R),  Alan Morrison (R),  Lindsay Patterson (R),  Zach Payne (R),  J.D. Prescott (R),  Jim Pressel (R),  Linda Rogers (R),  Craig Snow (R),  Ed Soliday (R),  Mike Speedy (R),  Greg Steuerwald (R),  Lorissa Sweet (R),  Jake Teshka (R),  Ann Vermilion (R),  Tim Wesco (R), 

Public Law 206 (on 05/04/2023)

Official Document