Bill > SB1592

This bill amends the Arizona State Retirement System (ASRS) investment regulations to clarify and strengthen fiduciary responsibilities and investment guidelines. The bill introduces new provisions that require ASRS fiduciaries to focus solely on pecuniary (financial) factors when making investment decisions, explicitly prohibiting consideration of non-pecuniary factors like environmental, social, or political goals. It mandates that investment managers discharge their duties exclusively in the interest of plan participants and beneficiaries, with the aim of providing financial benefits and covering administrative expenses. The bill limits proxy voting and investment manager selection to ensure that decisions are based only on financial considerations, and requires ASRS to publicly post a current list of investments and investment managers on its website. The legislation also defines key terms like "fiduciary," "pecuniary factor," and "non-pecuniary factor" to provide clarity. Additionally, the bill makes technical changes to existing investment limitations, such as adjusting language around percentage caps on different types of investments (e.g., equities, non-U.S. investments) and clarifying that when investment limits are reached, ASRS is not required to sell assets but cannot make further investments of that type until the limit is no longer exceeded.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83038