The bill requires the board of trustees (board) of the public employees' retirement association (PERA) to retain an organization with experience in public sector pension plans to conduct a study to analyze any climate-related financial risk to the total assets of PERA (fund). The board is required to administer a competitive selection process to solicit unbiased and independent third-party organizations with the necessary credentials to bid for the study and to enter into a contract with the selected organization.
The organization selected by the board is required to include the following in its study:
- A comprehensive analysis of the climate-related financial risk of PERA's portfolio and the exposure of the fund to long-term risks;
- A summary of climate-related financial risk-related engagement activities undertaken; and
- A description of additional action that should be taken, or planned to be taken, by the board to address climate-related financial risk, including a list of proxy votes and shareholder proposals initiated by the board.
The board is required to deliver a report to the general assembly detailing the findings of the organization's analysis.
(Note: This summary applies to this bill as introduced.)