NC S679

Requires North Carolina pension plan fiduciaries to discharge duties solely in the pecuniary interest of participants and beneficiaries, using care and prudence standards while diversifying investments to minimize risk.

Prohibits fiduciaries from considering non-pecuniary factors including environmental, social, political, or ideological goals when evaluating investments or exercising voting rights, except where such factors present material economic risks or opportunities.

Revokes all current proxy voting authority and establishes that voting authority for pension plan shares shall reside with the respective Board of Trustees or, for statewide or local governing authorities, with the respective governing officer, who may delegate only to persons committed to pecuniary-based guidelines.

Requires fiduciaries to obtain written commitments from proxy advisory firms and asset managers that their practices align with pecuniary-only voting standards, unless no economically practicable alternative is available.

Mandates annual public reporting of all proxy votes with vote captions, plan votes, management recommendations, and proxy advisor recommendations; grants the Attorney General enforcement authority including examination powers and court-ordered document impoundment.

Act becomes effective October 1, 2023.