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Senate Bill 266
By: Senators Harbin of the 16th, Dixon of the 45th, Setzler of the 37th, Goodman of the 8th,
Williams of the 25th and others
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To amend Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the
1
"Public Retirement Systems Investment Authority Law," so as to provide for a fiduciary duty2
to invest retirement assets solely in the financial interests of participants and their3
beneficiaries; to provide for duties; to provide for delegation of duties; to provide for4
objectives; to provide for proxy voting; to provide for conformance; to provide for a5
definition; to provide for related matters; to provide for an effective date; to repeal6
conflicting laws; and for other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the "Public10
Retirement Systems Investment Authority Law," is amended by adding a new Code section11
to read as follows:12
"47-20-88.
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(a) As used in this Code section, the term 'fiduciary' means any retirement system14
administration or any person that with respect to any retirement system subject to the15
provisions of this chapter:16
(1) Exercises any discretionary authority or control relative to the management or17
disposition of a retirement system's assets;18
(2) Renders investment advice for a fee or other compensation, whether directly or19
indirectly, with respect to any moneys or other property of a retirement system, or has20
any authority or responsibility to do so; or21
(3) Has any discretionary authority or control in the management or administration of the22
retirement system.23
(b) With regard to the investments and assets of a retirement system, each fiduciary:24
(1) Shall discharge its duties:25
(A) Solely in the interests of plan participants and their beneficiaries;26
(B) For the exclusive purpose of providing benefits to plan participants and their27
beneficiaries; and28
(C) In accordance with this Code section first and with the laws, resolutions,29
ordinances, and plan documents appurtenant to such retirement system second;30
(2) Shall only make investments with care, skill, prudence, and diligence under the31
circumstances then prevailing that a prudent expert acting in like capacity and familiar32
with such matters would use in the conduct of an enterprise of a like character and with33
like aims;34
(3) Shall diversify the investments of the plan so as to minimize the risk of large losses,35
unless doing so is clearly not prudent under the circumstances; and36
(4) Shall not subordinate the interests of the participants and their beneficiaries or37
sacrifice investment returns or accept increased investment risks in the promotion of any38
nonpecuniary interests. Such nonpecuniary interests shall include, but shall not be39
limited to, the furtherance of any social, political, or ideological interests.40 23 LC 43 2725S (SCS)
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(c) A fiduciary may delegate investment management responsibilities to qualified41
professional investment personnel; provided, however, that the fiduciary or fiduciaries42
making such delegation shall still be liable for a breach of its fiduciary duty if such43
delegation is shown to have been based upon influences other than the belief that the plan44
was best served by such delegation.45
(d) The investment objectives of a retirement system shall be to provide the greatest46
possible long-term benefits to members of the retirement system by maximizing the total47
rate of return on investment within prudent limits of risk for a retirement fund of its type48
and consistent with any investment return requirement assumed by the actuaries in49
determining the present and future soundness of the fund.50
(e) Each fiduciary shall vote and execute all voting proxies:51
(1) Solely and exclusively in the best economic interests or rights of the retirement52
system;53
(2) In favor of confidential proxy balloting; and54
(3) In support of management unless, in the opinion of the fiduciary, such a vote would55
be detrimental to the best economic interests or rights of the retirement system.56
(f) By November 1, 2023, any retirement system subject to the provisions of this chapter57
shall fully adhere to this Code section and conform, as necessary, any plan documents or58
contracts or local laws, ordinances, or resolutions that are not in compliance with this Code59
section."60
SECTION 2.61
This Act shall become effective on July 1, 2023.62
SECTION 3.63
All laws and parts of laws in conflict with this Act are repealed.64