By Kevin Stocklin
Progressives have succeeded in manipulating the $5.8 trillion state pension system into a vehicle for imposing their political agenda, while simultaneously fostering a lucrative system of patronage around it to co-opt non-believers into playing along.
State pension fund managers who have declared that they will include environmental and social justice goals in their investment decisions collectively control more than $3 trillion in retirement assets and include the five largest public pension plans in the U.S. Among them are The California Public Employees Retirement System (CalPERS), California State Teachers Retirement System (CalSTRS), the Teachers Retirement System of Texas, New York City pension funds, New York State Common Retirement Fund, Maryland State Retirement and Pension System, and the New York State Teachers Retirement System.
Perhaps their most high-profile success came in June 2021, when CalSTRS, CalPERS, and NY State Common Retirement Fund joined three of the world’s largest asset managers, BlackRock, Vanguard, and State Street, in voting to elect clean-energy advocates to the board of Exxon and divert its investments away from oil and gas and toward alternative fuels. All of these pension fund and money managers except Vanguard are members of Climate Action 100+, an initiative dedicated to making fossil fuel companies “take necessary action on climate change.”
But state officials are starting to question what they see as a misappropriation of public money, and whether climate and social investing is actually delivering any benefit in return.
“People with a woke agenda vote the shares, they get control of the board, and Exxon’s days are now numbered,” said Pennsylvania State Rep. Frank Ryan.
Missouri State Treasurer Scott Fitzpatrick said that progressive asset managers are “using our money, the people of Missouri’s money, to try to force their own political will on these companies. When we give them these resources, we’re giving them the power to speak for us.”
“States are recognizing that the financial system is being weaponized against industries that are the life blood of a lot of heartland states,” said Jonathan Berry, former regulatory head at the Department of Labor and a partner at Boyden Gray. “Pension plan proxy votes are often being used against both the economic and political interests of a lot of government workers.”
Derek Kreifels, CEO of the State Financial Officers Foundation, said corporate executives often confide to him that “they hear from folks on the left on a daily basis. Up until the fall of last year, they rarely heard from those of us who were right of center.”
Kreifels said it takes time to explain to people how their retirement money is being used to promote a progressive agenda. “But once you do, frankly people are pretty outraged by it.”
In an attempt to de-politicize their pensions, state officials are working to hold fund managers personally liable if they misuse retirees’ money. Last week, a conference of state officials, working through the American Legislative Exchange Council (ALEC), crafted model legislation that compels state pension
Via:: American Conservative

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