State Retirement and Pension System - Divestment From Israel

HB 1455 requires Maryland's State Retirement and Pension System Board of Trustees to review all investment holdings and divest from specific "Israel-restricted investments," defined as holdings in the Government of Israel, its agencies, or associated entities like the Development Corporation for Israel. The bill prohibits the Board from making new investments in these restricted assets using net new funds and mandates annual reports to legislative committees detailing divestment actions and ineligible investments. It includes provisions requiring the Board to act in good faith while complying with fiduciary duties and applicable human rights law, with limited exceptions for investments that cannot be sold at fair market value. The bill directly affects Maryland's public employee pension funds, which hold billions in assets managed by the Board. It takes effect July 1, 2026.