Indiana Code 5-10.2-14-10. Prohibited contracting; replacement of service provider; exception
(1) enter a contract; or
Terms Used In Indiana Code 5-10.2-14-10
- Board: as used in this article , means the board of trustees of the Indiana public retirement system established by Indiana Code 5-10.2-1-1
- Contract: A legal written agreement that becomes binding when signed.
- ESG commitment: means an action taken or a factor considered by a service provider:
Indiana Code 5-10.2-14-2
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiduciary: A trustee, executor, or administrator.
- financial: means a prudent determination by a fiduciary to have a material effect on the monetary risk or the monetary return of an investment. See Indiana Code 5-10.2-14-3
- service provider: means investment managers and proxy advisors to the system. See Indiana Code 5-10.2-14-4
- system: refers to the Indiana public retirement system established by Indiana Code 5-10.2-14-5
with a service provider that has made an ESG commitment unless taking the action described in subdivisions (1) and (2) violates the board’s fiduciary duty to the system‘s participants and beneficiaries.
(b) The board shall replace a service provider that has made an ESG commitment with a service provider that is comparable in financial performance, so as not to violate the board’s fiduciary duty to the system’s participants and beneficiaries. If the board replaces a service provider, it shall do so within a reasonable time, but not later than one hundred eighty (180) days after receiving notice from the treasurer of state of the service provider’s ESG commitment.
(c) If the board determines that there is not a comparable service provider to replace a service provider under subsection (b), the board shall continue contracting with the service provider that has made an ESG commitment. The board shall include in its minutes the:
(1) decision that a comparable service provider does not exist; and
(2) evidence supporting the decision under subdivision (1).
As added by P.L.206-2023, SEC.1.