SB2152 Summary

• Authorizes the State Treasurer to manage domestic and international proxy voting for pension fund shares held directly by the State Employees' Retirement System, Teachers' Retirement System, State Judges Retirement System, and the Illinois State Board of Investment upon approval by a three-fifths vote of each respective board.

• Requires the State Treasurer to provide quarterly comprehensive proxy voting reports to the boards and grant access to third-party proxy voting service communications, while the boards may provide voting guidance that the Treasurer shall consider.

• Designates the State Treasurer as a fiduciary for proxy voting activities and exempts the boards, their staff, and trustees from liability for negligent or wrongful acts related to proxy voting management.

• Mandates each board publish annual reports by September 1 beginning in 2023 describing proxy voting guidelines and how sustainability factors are considered in investments, including strategy, portfolio assessment, investment manager practices, and corporate engagement activities.

• Requires the State Treasurer and each board to execute an intergovernmental agreement covering costs, voting guidance, reports, and other proxy voting issues before implementation; provisions sunset on January 1, 2027.