Committee passes state retirement protections measure
Frankfort, Kentucky (March 27, 2024) – Representative Scott Sharp’s efforts to protect public pension plans continue as members of the House Committee on Banking and Insurance passed HB 742 on Wednesday. The measure would create new proxy voting procedures for the Kentucky Retirement Systems aimed at ensuring that proxies are acting in the best interest of those they represent.
“These individuals are entrusted with casting votes that have an incredible impact on the lives and livelihoods of our public employees,” said Sharp. “This bill simply makes sure there are guidelines in place to ensure best practices in proxy voting and ensures that all involved are aware of the priority we place on ensuring the retirement systems put the best interests of retirees, future retirees, and all Kentucky taxpayers first.”
HB 742 builds on legislation Sharp passed during the 2023 Regular Session. That measure, HB 236 banned the state’s public retirement systems from investment practices commonly referred to as environment, social, and governance standards (ESG). The measure also required all state retirement systems to fulfill their fiduciary duty to those who count on public retirement funds, as well as those responsible for ensuring they continue to provide for retirees.
HB 742 goes one step further by requiring fiduciaries to act consistently with those statutory requirements when proxies representing public pensions vote on or making recommendations on how to vote on shareholder proposals for corporations the funds invest in.
HB 742 makes two major changes to the law as it applies to fiduciaries. When fiduciaries are voting shares or recommending how to vote shares on a shareholder-sponsored proposal, HB 742 requires that fiduciaries must vote or make recommendations in a manner that is consistent with the position taken by the company’s independent board of directors. The measure includes one exception: if a fiduciary is going to vote or make a recommendation that is not consistent with the company’s independent board of directors, the fiduciary must conduct an economic analysis showing why this vote/recommendation is in the best economic interests of the company, and thus in the best interest of the Kentucky’s pension system members.
“The Kentucky General Assembly has allocated more than $20 billion to shoring up our public pensions. We’ve made major reforms to ensure they are viable and worked to ensure that those who make decisions have the right priorities. Now more than ever, it is imperative that we keep a mindful eye on how our retirement dollars are managed,” Sharp added.
For more information on HB 742 or any legislation considered during the 2024 Regular Session, please visit legislature.ky.gov.
Zachary L. Jones
House Majority Leadership
Kentucky House of Representatives
Capitol Annex, Rm. 332 | 702 Capitol Ave. | Frankfort, KY 40601 | 502-564-4334 office
Sharp leadership has important Lawrence County Bridge under construction
**Exciting Update on KY 581 Georges Creek Bridge! **
KYTC has been hard at work on the George’s Creek Bridge, and we’re thrilled to share some exciting progress photos with you all! Our dedicated contractors have been working tirelessly to ensure everything is ready and up to the highest standards.
So far, we’ve removed the old structure and completed the foundational groundwork. Next up are abutments, pilings, and structural work. Currently, the bridge is on track for a possible opening later this year.
We want to extend a huge thank you to the community for your patience and support throughout this project.
Stay tuned for more updates as we continue to make progress on the Georges Creek Bridge.
