Pension boards must base stock votes on finances starting November 2026

Public pension boards must base shareholder votes and related company discussions solely on factors affecting financial risk or returns. The rules cover Oklahoma state and local public pension plans and proposals at publicly traded businesses headquartered and operating in the United States. Retirement Freedom Act plans are excluded, except that their default investment choices must follow the law. Votes must meet boards’ duties to protect plan members and their beneficiaries and seek the best returns for the risk taken over an appropriate investment period. Environmental, social, or political goals cannot guide votes when they are unrelated to likely financial risk or returns. Related company discussions must aim solely to maximize shareholder value, but boards may speak against proposals with no financial impact. These requirements take effect November 1, 2026.

Public pension boards must keep authority over shareholder votes when economically practical. The authority requirement covers shares held directly or indirectly for a covered public pension system. Boards may hire a voting adviser only if it already follows compatible voting guidelines and commits in writing to follow them for every advisory service. The voting authority and adviser requirements take effect November 1, 2026.

Public pension boards must publish an annual report of all shareholder votes cast by the boards or those entrusted to act for them. Each covered public pension board must post the report on its website. Each entry must identify the vote’s subject, the vote cast, company management’s recommendation, and any recommendation from a voting adviser or other service provider. The reporting duty takes effect November 1, 2026. Each report is due no later than March 1 of the year following the calendar year it covers.