Retirement: defined benefit; duties of investment fiduciary; modify. Amends sec. 13 of 1965 PA 314 (MCL 38.1133).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill modifies the rules for investment fiduciaries managing defined benefit retirement plans in Michigan. It clarifies their duties to prioritize the financial interests of participants and beneficiaries, requires detailed reporting on investments and expenses, and establishes specific considerations for investment decisions beyond purely financial factors. The bill also addresses divestment from companies involved in supporting terrorism and outlines restrictions on travel expenses funded by the systems.
Key provisions
- Clarifies that an investment fiduciary must act in the best financial interest of participants and beneficiaries.
- Requires investment fiduciaries to prepare and maintain detailed annual reports on system assets, performance, and expenses.
- Specifies that investment decisions must consider both pecuniary factors and relevant circumstances, including diversification, liquidity, and projected returns.
- Establishes limitations on investments in foreign countries designated as state sponsors of terrorism.
- Restricts travel expenses funded by the systems unless certain conditions are met.
- Requires large sponsored systems to adhere to specific reporting requirements and divest from hazardous waste deep disposal well facilities under certain circumstances.
- Mandates that investment fiduciaries must meet specific qualifications, such as being a registered investment advisor or a bank.
- Requires open meetings and public broadcasting of fiduciary meetings.
Bill text
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Document of record
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- Senate Introduced Bill
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