H 3690: South Carolina Requires Pension System to Invest Based Solely on Pecuniary Interests, Not ESG Interests
Summary
H 3690 was enacted and became effective on February 5, 2024. It requires the Retirement System Investment Commission to cast shareholder proxy votes and make investment decisions consistent with the best interest of the trust fund based on pecuniary factors, not for furtherance of environmental, social, or political goals, objectives, or outcomes. It requires the Commission to annually "adopt a statement of investment objectives and policies for the retirement system," including "the desired rate of return on assets overall . . . [and] for each asset class, asset-allocation goals, guidelines for the delegation of authority, an explicit statement that all investment decisions must be based only on the consideration of pecuniary factors, and information on the types of reports to be used to evaluate investment performance." The law gives the Attorney General enforcement authority.
