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Council backs bill requiring pension board to target certain holdings and publish annual plan
Summary
The Council on Pensions unanimously recommended passage of House Bill 805 / Senate Bill 542, which would require the Tennessee Consolidated Retirement System board to divest securities it can identify in mutual funds or ETFs and present an annual investment plan to the Council chair.
On March 10 the Council on Pensions voted unanimously to recommend passage of House Bill 805 / Senate Bill 542, which would require the Tennessee Consolidated Retirement System (TCRS) Board of Trustees to attempt divestment of securities held within mutual funds or exchange‑traded funds when those securities can be identified, and to prepare an annual written investment plan for the Council chair.
Senator Stevens, shepherding the bill, told members it would require divestment where securities could be identified within pooled vehicles and, if divestment is not practicable, require a written plan submitted to the Council chair by July 1 and implemented by Dec. 31 consistent with fiduciary duties and prudent investment standards.
Mister Weyman of the Department of Treasury said the bill’s language also applies to public pension plans that do not participate in TCRS and that Treasury does not expect additional personnel or resources will be required to implement the bill as written. The department indicated compliance could be absorbed within existing resources.
After brief discussion the committee voted 11‑0 to recommend the bill for passage to its standing committee. The Council did not adopt amendments during its consideration; the motion for a positive recommendation carried on a roll call that recorded all present members as ayes.
