Provides relative to the use of terror-free index funds by the state and statewide retirement systems (EN NO IMPACT APV)
Impact
The bill's implementation is expected to influence how retirement systems manage their investment strategies, particularly those allocating funds to international markets. By mandating the use of terror-free index funds, the bill seeks to promote ethical investment practices and enhance the state's stance on issues surrounding terrorism and foreign relations. This may lead to the restructuring of existing investment portfolios, requiring retirement systems to actively manage compliance with these new standards.
Summary
House Bill 34 amends Louisiana Revised Statute 11:316 to establish provisions for the use of terror-free index funds by state and statewide retirement systems. The bill defines 'terror-free equities' and establishes a framework for the allocation of international investments, specifically requiring the exclusion of companies with operations in designated prohibited nations from investment portfolios. This initiative aims to ensure that the state's investments align with ethical considerations relating to international operations and security concerns.
Sentiment
Overall, the sentiment surrounding HB 34 appears to be positive among lawmakers who prioritize ethical investment practices and state responsibility in financial operations. Proponents contend that the bill reflects a necessary step toward aligning investment policies with moral obligations and national security interests. However, there could be concerns regarding the additional administrative burden placed on retirement systems to comply with the new requirements and the potential impact on investment returns.
Contention
Notable points of contention may arise from discussions on the definition of 'prohibited nations' and how stringently the funds will be monitored for compliance with the new standards. Critics may argue that the bill could limit investment opportunities or lead to financial losses if certain high-performing companies are excluded due to their operations in specified regions. There may also be discussions regarding the broader implications of such ethical investing mandates on the performance of state retirement funds and their obligations to beneficiaries.
Provides relative to the content of reports submitted by state and statewide retirement systems to the legislative retirement committees (OR NO IMPACT APV)
Allows members of the Firefighters' Retirement System to allocate Deferred Retirement Option Plan funds between two separate interest bearing accounts (EN NO IMPACT APV)
Provides relative to the authority of statewide retirement systems to fund cost-of-living increases with funding deposit account balances (EN NO IMPACT APV)