MI HB5294

Amends the Public Employee Retirement System Investment Act to supersede any previous investment authority granted to retirement systems under other state laws.

Requires investment fiduciaries to discharge duties solely in the interest of participants and beneficiaries, acting with care, skill, prudence, and diligence comparable to a prudent person in similar circumstances.

Prohibits investment fiduciaries from engaging in prohibited transactions including unfair property sales/exchanges, improper lending, asset transfers to sponsoring political subdivisions without adequate consideration, and dealings with personal interests adverse to the system.

Mandates investment fiduciaries comply with the Divestment from Terror Act (2008 PA 234) and prohibits investments in debt instruments from countries identified by the U.S. State Department as sponsoring terrorism.

Requires retirement systems to annually publish lists of soft dollar expenses and all investments made on behalf of participants, along with the basis for investment decisions, with standards at least as prudent as those used in the Municipal Employees Retirement Act of 1984.