Authored by Rep. Ethan Manning (R-Logansport), House Bill 1008 provides that a fiduciary, in making and supervising investments of funds of the public pension system, shall discharge the fiduciary’s duties solely in the financial interest of the participants and beneficiaries of the public pension system. It also sets out that any investment action should not be taken based upon furthering social, political or ideological interests. We believe that’s sound public policy. However, the bill unfortunately goes further and takes an anti-free market turn. It does this by specifying certain sectors in which investments can’t be made with companies or funds that have goals of reduction of greenhouse gas emissions or criteria based on protected classes under Indiana civil rights statutes.
It would prohibit investment or require divestments from funds or companies with policies of limiting investment based upon the following: failure to meet or commit to environmental standards; engagement in the anti-firearms/ammunition industry; contracts with the U.S. Immigration and Customs Enforcement for the detention of immigrants/border security policies; and work in the fossil fuels, timber, mining, agriculture and food animal production.
We believe this is picking winners and losers and is anti-free market. Market performance and financial performance of investments should be driving pension investments. The bill was heard in the House Financial Institutions Committee Thursday and is being held until the next committee meeting. It will be scheduled as an amend and vote only.
