HB 5182 Summary

• Amends the Public Employee Retirement System Investment Act to establish fiduciary duties requiring investment fiduciaries to act in the sole interest of participants and beneficiaries with prudence, care, and skill comparable to professionals in similar capacities.

• Requires investment fiduciaries to consider diversification, liquidity, projected returns, and the general welfare of Michigan when making investment decisions, provided investments offer comparable safety and returns to other permitted investments.

• Mandates compliance with the Divestment from Terror Act (2008 PA 234) for Tier 1 state employees, judges, state police, and public school employees retirement systems, and prohibits investment in debt instruments from countries identified by the U.S. State Department as sponsoring terrorism.

• Prohibits investment fiduciaries from self-dealing, conflicts of interest, and unfair transactions with parties in interest, while allowing reasonable compensation and expense reimbursement as agreed upon.

• Requires pension systems to annually publish to participants a list of all soft dollar expenses and to publish all board expenditures, including travel and budget information, on a website on a quarterly basis.