Section 24-2-802 - DefinitionsAs used in this subchapter:
(1) "Fiduciary" means a person who, with respect to a pension benefit plan:(A) Exercises any discretionary authority or discretionary control regarding the management of the pension benefit plan or exercises any authority or control regarding the management or disposition of the pension benefit plan's assets; or(B) Has any discretionary authority or discretionary responsibility in the administration of the pension benefit plan, including making recommendations or voting on or for a plan's shares or proxies;(2)(A) "Material", when used to qualify a financial risk or financial return, means a financial risk or financial return in which there is a substantial likelihood that a reasonable investor would attach importance when:(i) Evaluating the potential financial risks or returns of an existing or prospective investment; or(ii) Exercising, or declining to exercise, any rights appurtenant to securities.(B) "Material", when used to qualify a financial risk or financial return, does not include: (i) Furthering nonpecuniary, environmental, social, political, ideological, or other goals or objectives; or(ii) Any portion of a financial risk or financial return that primarily relates to events that: (a) Involve a high degree of uncertainty regarding what may occur in the long-term future; and(b) Are systemic, general, or not investment-specific in nature;(3) "Nonpecuniary" means any action taken or factor considered by a fiduciary with any purpose to further environmental, social, political, or ideological goals;(4)(A) "Pecuniary factor" means a factor that has a material effect on the financial risk or financial return, or both, of an investment based on appropriate investment horizons consistent with the pension benefit plan's investment objectives and the funding policy.(B) "Pecuniary factor" does not include a nonpecuniary factor; and(5) "Pension benefit plan" means any plan, fund, or program, other than an individually directed defined contribution plan, that is established, maintained, or offered by the State of Arkansas or any subdivision, county, municipality, agency, or instrumentality of the State of Arkansas, or any school, college, university, administration, authority, or other enterprise operated by the State of Arkansas to the extent that by its terms or as a result of prevailing circumstances the plan, fund, or program: (A) Provides retirement income or other retirement benefits to employees or former employees; or(B) Results in a deferral of income by employees for a period of time extending to or beyond the termination of the covered employment.Added by Act 2023, No. 498,§ 1, eff. 8/1/2023.