Forcing public pension plans to make political investing decisions could hurt taxpayers and retirees

In Politics by Michael Rae

As international tensions threaten U.S. and global energy supplies, the California State Senate is considering legislation that would compel public pension funds to divest from fossil fuel companies, potentially starving these firms of capital. The State Senate bill is the latest in a series of initiatives designed to replace traditional portfolio management with a set of shifting environmental, social and governance (ESG) investment mandates that could harm public employees, taxpayers, and the nation’s economy.

The proposed law, Senate Bill 1173, applies to the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), which collectively manage close to $800 billion