SB 797 Summary

• Establishes investment fiduciary duties for public employee retirement systems, requiring prudent management, diversification, and exclusive focus on participant benefits with clear accountability and annual reporting requirements.

• Adds restrictions on service provider compensation by prohibiting payments to providers whose associates have contributed more than $150-$350 per election (depending on voting eligibility) to government officials within the preceding 24 months, with limited exceptions.

• Requires service providers and investment fiduciaries convicted of felonies or misdemeanors to reimburse systems for all costs including legal defense fees.

• Caps professional training and education costs for board members at $150,000 annually or $12,000 per member (whichever is less), with individual member limit of $30,000 per year, subject to annual adjustment for inflation.

• Establishes procedures for removing board members through unanimous vote, court order, or less restrictive plan provisions, with grounds including incapacity, material breach, legal violations, or petition by 2/3 of eligible voters for elected members.