HB1253 - State Government Employee Retirement Protection Act

• Creates the State Government Employee Retirement Protection Act as a new subchapter governing fiduciaries of Arkansas state pension benefit plans.

• Requires fiduciaries to discharge duties solely in the pecuniary interest of plan participants and beneficiaries, with only financial considerations allowed in investment decisions.

• Prohibits fiduciaries from considering nonpecuniary factors (environmental, social, political, ideological goals) except when they present a material economic risk or opportunity recognized by investment professionals.

• Mandates that all shares held by pension plans be voted solely in the pecuniary interest of participants, requiring proxy advisors and investment managers to commit in writing to following pecuniary-only voting guidelines.

• Grants the Arkansas Attorney General authority to enforce the act, including power to require written statements, examine witnesses and records, and impound materials related to alleged violations.