Georgia 2023-2024 Regular Session

Georgia Senate Bill SB266 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	23 LC 43 2725S (SCS)
2		-	S. B. 266
	1	+	23 LC 43 2725S
3	2		- 1 -
4		-	Senate Bill 266
5		-	By: Senators Harbin of the 16th, Dixon of the 45th, Setzler of the 37th, Goodman of the 8th,
6		-	Williams of the 25th and others
7		-	AS PASSED SENATE
	3	+	The Senate Committee on Retirement offered the following substitute to
	4	+	SB 266:
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10		-	To amend Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the
11		-	1
	7	+	To amend Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the1
12	8		"Public Retirement Systems Investment Authority Law," so as to provide for a fiduciary duty2
13	9		to invest retirement assets solely in the financial interests of participants and their3
14	10		beneficiaries; to provide for duties; to provide for delegation of duties; to provide for4
15	11		objectives; to provide for proxy voting; to provide for conformance; to provide for a5
16	12		definition; to provide for related matters; to provide for an effective date; to repeal6
17	13		conflicting laws; and for other purposes.7
18	14		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
19	15		SECTION 1.9
20	16		Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the "Public10
21	17		Retirement Systems Investment Authority Law," is amended by adding a new Code section11
22	18		to read as follows:12
23	19		"47-20-88.
24		-	13 23 LC 43 2725S (SCS)
25		-	S. B. 266
26		-	- 2 -
	20	+	13
27	21		(a) As used in this Code section, the term 'fiduciary' means any retirement system14
28	22		administration or any person that with respect to any retirement system subject to the15
29		-	provisions of this chapter:16
30		-	(1) Exercises any discretionary authority or control relative to the management or17
	23	+	provisions of this chapter:16 23 LC 43 2725S
	24	+	- 2 -
	25	+	(1) Exercises any discretionary authority or control relative to the management or
	26	+	17
31	27		disposition of a retirement system's assets;18
32	28		(2) Renders investment advice for a fee or other compensation, whether directly or19
33	29		indirectly, with respect to any moneys or other property of a retirement system, or has20
34	30		any authority or responsibility to do so; or21
35	31		(3) Has any discretionary authority or control in the management or administration of the22
36	32		retirement system.23
37	33		(b) With regard to the investments and assets of a retirement system, each fiduciary:24
38	34		(1) Shall discharge its duties:25
39	35		(A) Solely in the interests of plan participants and their beneficiaries;26
40	36		(B) For the exclusive purpose of providing benefits to plan participants and their27
41	37		beneficiaries; and28
42	38		(C) In accordance with this Code section first and with the laws, resolutions,29
43	39		ordinances, and plan documents appurtenant to such retirement system second;30
44	40		(2) Shall only make investments with care, skill, prudence, and diligence under the31
45	41		circumstances then prevailing that a prudent expert acting in like capacity and familiar32
46	42		with such matters would use in the conduct of an enterprise of a like character and with33
47	43		like aims;34
48	44		(3) Shall diversify the investments of the plan so as to minimize the risk of large losses,35
49	45		unless doing so is clearly not prudent under the circumstances; and36
50	46		(4) Shall not subordinate the interests of the participants and their beneficiaries or37
51	47		sacrifice investment returns or accept increased investment risks in the promotion of any38
52	48		nonpecuniary interests. Such nonpecuniary interests shall include, but shall not be39
53		-	limited to, the furtherance of any social, political, or ideological interests.40 23 LC 43 2725S (SCS)
54		-	S. B. 266
55		-	- 3 -
	49	+	limited to, the furtherance of any social, political, or ideological interests.40
56	50		(c) A fiduciary may delegate investment management responsibilities to qualified41
57	51		professional investment personnel; provided, however, that the fiduciary or fiduciaries42
58		-	making such delegation shall still be liable for a breach of its fiduciary duty if such43
59		-	delegation is shown to have been based upon influences other than the belief that the plan44
	52	+	making such delegation shall still be liable for a breach of its fiduciary duty if such43 23 LC 43 2725S
	53	+	- 3 -
	54	+	delegation is shown to have been based upon influences other than the belief that the plan
	55	+	44
60	56		was best served by such delegation.45
61	57		(d) The investment objectives of a retirement system shall be to provide the greatest46
62	58		possible long-term benefits to members of the retirement system by maximizing the total47
63	59		rate of return on investment within prudent limits of risk for a retirement fund of its type48
64	60		and consistent with any investment return requirement assumed by the actuaries in49
65	61		determining the present and future soundness of the fund.50
66	62		(e) Each fiduciary shall vote and execute all voting proxies:51
67	63		(1) Solely and exclusively in the best economic interests or rights of the retirement52
68	64		system;53
69	65		(2) In favor of confidential proxy balloting; and54
70	66		(3) In support of management unless, in the opinion of the fiduciary, such a vote would55
71	67		be detrimental to the best economic interests or rights of the retirement system.56
72	68		(f) By November 1, 2023, any retirement system subject to the provisions of this chapter57
73	69		shall fully adhere to this Code section and conform, as necessary, any plan documents or58
74	70		contracts or local laws, ordinances, or resolutions that are not in compliance with this Code59
75	71		section."60
76	72		SECTION 2.61
77	73		This Act shall become effective on July 1, 2023.62
78	74		SECTION 3.63
79	75		All laws and parts of laws in conflict with this Act are repealed.64