Legislation that would put the interests of participants and their beneficiaries ahead of “nonpecuniary” interests when assets of publicly funded retirement plans are invested is closer to enactment in Georgia. And the ball has just begun rolling on a similar measure in Louisiana. 
The Peachtree State
Under HB 481, the Georgia Public Retirement Systems Investment Authority Law would be amended so that it would state that when investing the assets of retirement plans that are funded in part or entirely through public funds, it is a fiduciary duty to do so solely in the financial interest of participants and their beneficiaries and not to pursue “nonpecuniary” interests such as social, political, or ideological concerns.
Rep. John Carson (R-Marrietta) introduced the bill in the state House of Representatives on Feb. 16; the chamber passed it 10 days later; the state Senate followed suit on March 13.
The bill was sent to Gov. Brian Kemp (R) on April 1; it awaits his action.
The Bayou State
Legislation before the Louisiana House of Representatives would require that fiduciaries for public retirement systems make investment decisions based solely on financial factors.
HB 902, which Rep. Michael Melerine (R-District 6) introduced on April 3, says that the best interests of a plan and its shareholders must be the top priority for a proxy advisory firm serving a public retirement system when it provides proxy voting recommendations or advice to that plan.
More specifically, the bill says that a proxy advisory firm must commit to basing its voting recommendations solely on the best economic interest of the enterprise's shareholders and the plan, or it may not provide proxy voting recommendations or advice to a plan regarding shareholder-sponsored proposals for an enterprise in which the plan has an interest.
The bill is now before the House Committee on Retirement.
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