PERA Public Employees' Retirement Association Board Assess Climate-related Financial Risks

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.)