HF 721: Relating to the consideration of nonfinancial factors in providing financial services, including actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties

What it does

This bill requires a fiduciary to vote all shares of a pension benefit plan established, maintained, or offered by a public entity solely in the best economic interest of the plan participants and beneficiaries. The bill creates the rebuttable presumption that, if a fiduciary’s vote aligns with the recommendation of the board of directors of the issuer of the shares or if the fiduciary or a third party conducts and documents an economic analysis showing that the vote is in the best economic interest of the plan participants and beneficiaries, the vote is in the best interest of the plan participants and beneficiaries.

Lobbying · 1 for, 5 against

For: VALOR Iowa

Against: Iowa Association of School Boards; Iowa State Education Association; Rural School Advocates of Iowa; School Administrators of Iowa; Urban Education Network of Iowa

In plain words

1. March 4, 2025Filed in the House and sent to the Ways and Means committee