Mississippi Senate Bill SB2899

Mississippi 2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 3/5/24

Caption

PERS Board; require to make investment decisions with sole purpose of maximizing returns.

Impact

The implications of SB 2899 extend to the manner in which the PERS Board of Trustees operates and makes investment decisions. The law directs the board and its managers to assess investment opportunities solely based on their ability to yield financial returns and minimize risk. As such, it aims to eliminate any inclination to favor investments that may promote social or environmental criteria even if they come at the cost of financial performance. This could significantly reshape the landscape of state investments, particularly in relation to socially responsible investing.

Summary

Senate Bill 2899 mandates the investment policies of the Mississippi Public Employees' Retirement System (PERS) to prioritize the safety of investments and to achieve the highest possible returns for beneficiaries. The bill asserts that all decisions related to state trust fund investments should be devoid of considerations based on nonpecuniary beliefs or political factors. This legislative intent is a response to conversations relating to environmental, social, and governance (ESG) principles, emphasizing that fiduciary responsibilities should focus strictly on financial factors when evaluating potential investments.

Contention

Although the bill's supporters argue it preserves the fiduciary integrity of the PERS and ensures that beneficiaries receive optimal financial returns, opponents may find contention in its outright dismissal of ESG considerations. Critics argue that completely sidelining social responsibility in investment decisions overlooks the potential for positive impact and fails to align with current trends in the financial industry that increasingly consider ESG factors crucial for long-term investment performance. Discussions and debates on this bill may reflect broader tensions over how public funds should be allocated.