NUNN ISSUES STATEMENT ON SENATE'S
OVERRIDE OF BESHEAR’S VETO OF SENATE BILL 183
Beshear's veto prioritizes political activism over
state pension system’s fiduciary best interests
FRANKFORT, Ky. (March 27, 2025)—The following is a statement from bill sponsor Sen. Matt Nunn, R-Sadieville, regarding the legislature overriding the Governor’s veto of Senate Bill (SB) 183, which requires investment decisions for Kentucky’s state-administered retirement systems to focus solely on financial interests—not political or social agendas:
“The Governor’s veto reflects either a fundamental misunderstanding of the bill or a willful defense of the abuses it seeks to correct. I sincerely hope it is just a misunderstanding.
“SB 183 doesn’t strip fiduciary discretion—it strengthens it. The law doesn’t require blind agreement with corporate boards; it simply says that if proxy advisers recommend a vote against those boards on behalf of our retirees, they need to prove it benefits Kentuckians financially. That’s not a restriction—it’s accountability.
“Proxy firms like ISS and Glass Lewis are not regulated and do not have a fiduciary responsibility to shareholders. They routinely inject political ideology, such as ESG and DEI mandates, into decisions that should be based solely on returns. Our public employees and retirees deserve a pension system focused on financial stability, free from political ideology and agendas.
“If the Governor is content to let unaccountable firms gamble with the retirements of teachers, state troopers, and public employees, he’s not defending fiduciary duty—he’s abdicating it.”
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SB 183 responds to growing concern over the outsized influence of proxy firms like ISS and Glass Lewis, which control 90 percent of the market and often push political agendas over financial performance. The law requires these firms to justify any vote against a company’s board with an economic analysis, protecting Kentucky’s pensions from ESG activism and conflicts of interest that put retirees’ savings at risk.
Additional information on the topic can be found here in a Wall Street Journal editorial.
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Sen. Matt Nunn represents the 17th Senate District, including Grant and Scott Counties, southern Kenton County, and northwestern Fayette County. Elected to the Senate in November, Nunn succeeded Kentucky’s longest-serving Senate majority floor leader, Sen. Damon Thayer. Nunn is co-chair of the Budget Review Subcommittee on Economic Development, Natural Resources, and Environmental Protection. He is also a member of the Senate Committees on Economic Development, Tourism, and Labor; Appropriations and Revenue; Licensing and Occupations; Agriculture; and Veterans, Military Affairs, and Public Protection. Additionally, Nunn serves on the Legislative Oversight and Investigations Committee.
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