Bill > HB657

This bill modifies Missouri law regarding investment fiduciary duties and proxy voting for public employee retirement and pension systems by establishing new guidelines for how these systems can invest and vote their shares. The bill requires investment fiduciaries to act in the best financial interests of plan participants, using prudent investment strategies that prioritize economic returns and system stability. Specifically, it prohibits considering environmental, social, or governance (ESG) characteristics in a way that could override fiduciary responsibilities, and restricts legislative or regulatory mandates that might influence investments based on non-economic factors. The bill also establishes that shares of common stock must be voted solely in the economic interest of plan participants, meaning voting for environmental, social, political, or ideological goals is not permitted. Shares can be voted either by internal system staff or by an investment manager who has committed in writing to vote in a manner consistent with the economic interests of plan participants. These provisions aim to ensure that public employee retirement systems make investment and voting decisions based primarily on financial considerations and potential returns, rather than broader social or political objectives.

Government Affairs, Labor and Employment

https://house.mo.gov/Bill.aspx?bill=HB657&year=2025&code=R