Bill > SB389

This bill modifies the fiduciary duties for public employee retirement system investments by establishing clear guidelines for investment decision-making. The bill requires investment fiduciaries to act with prudence, care, and diligence, prioritizing the financial interests of system participants and beneficiaries. Specifically, the bill mandates that investment decisions must consider factors like diversification, liquidity, current and projected returns, and potential risks. A key addition is a provision explicitly prohibiting environmental, social, and governance (ESG) characteristics from overriding core fiduciary responsibilities. The bill also introduces new requirements for voting shares of common stock, stipulating that such votes must be cast solely in the economic interest of system participants and prohibiting voting based on non-economic goals like political or ideological considerations. Additionally, the bill provides two methods for proxy voting: either by internal system staff or by an investment manager who has committed to vote in the system's economic interest. These changes aim to ensure that public employee retirement systems make investment decisions primarily focused on financial performance and participant benefits, rather than broader social or political objectives.

Government Affairs

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=389