SB 166

Bill Subjects

Actuarial Analysis Fiduciaries Retirement And Pensions State Agencies

Abstract

Amend KRS 21.450, 61.650, 78.790, and 161.430 to expand scope of persons owing a fiduciary duty to the respective state-administered retirement systems, provide that fiduciaries consider solely the interest of the members and beneficiaries of the retirement systems using only pecuniary factors and prohibit the consideration of or actions on nonpecuniary interests, including environmental, social, political, and ideological interests, and prohibit any contract or agreement from voiding such fiduciary duties; amend KRS 21.450, 61.650, and 78.790 to require third-party fiduciaries to acknowledge their fiduciary duties in writing; amend KRS 21.540, 61.650, 78.790, and 161.430 to require the boards of the state-administered retirement systems to adopt their own proxy guidelines, prevent the boards from following the recommendations of a proxy voting service or proxy adviser unless the proxy adviser acknowledges its fiduciary duties in writing, and require the boards to either vote their own shares or have the proxy voting service or proxy adviser voting the system's shares commit to follow the board's proxy guidelines; amend KRS 21.540, 61.645, 78.782, and 161.250 to require the quarterly reporting of proxy votes to the boards of the state-administered retirement systems; make technical changes.