Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.

SB 312 clarifies the fiduciary duties of Texas public retirement systems (like those for teachers, state employees, and judges) and their investment managers or proxy advisors. It defines key terms like "financial factor" and requires investment decisions to be made solely in the financial interest of participants and beneficiaries, focusing on risk management and return objectives. The bill amends existing law to ensure investment managers and governing bodies act with "care, skill, and prudence" while prioritizing participant benefits over other considerations. It does not create new programs but refines standards for how retirement funds are managed. The bill is currently pending in committee (left pending April 24, 2025).