A bill for an act relating to actions regarding the economic interest of enterprise shareholders and participants in and beneficiaries of public pension benefit plans, and providing penalties.

SSB 1056 requires public pension plan managers in Iowa to vote shares solely based on the "best economic interest" of plan participants, defined as maximizing risk-adjusted investment returns over the plan’s time horizon. It mandates that fiduciaries conduct and document economic analyses if they vote against a company’s board recommendation (which is presumed to align with economic interests), and prohibits voting to advance environmental, social, or ideological goals unless proven economically beneficial. The bill also requires annual reports to the state treasurer detailing votes against board recommendations and supporting analyses, with penalties for noncompliance. This directly affects Iowa’s public pension systems, their managers, and proxy advisory firms providing voting guidance for state-regulated companies.