Opinions from Friends of PERA
Sample letter sent by an FOP member, October 31, 2007 »
From Cheryl Flagg...Oct. 17, 2007:
Don't see anything here about divestment being a shared responsibility...only California public pension funds must make the sacrifice. Also, looks as though a lot of people stand to gain monetarily from California divestment, while its pension funds lost money. Actually, it's those teachers, public school employees, firemen, policemen, and civil servants that lose money! What will it cost Colorado PERA? By the way...that's us, you and me! More...
Friday, September 28 at 2:00 PM
Cynthia Rutledge of Oak Creek writes to Rocky Mountain News:
I’m responding to the Sunday, September 16, 2007 article in SPEAKOUT
by Senators Fitz-Gerald, Gordon, McElhany and Penry.
Our state legislators are abusing their authority with repeated
attempts at manipulating the investment of Colorado PERA’s defined
benefit pension funds for an increasing list of divestment
“imperatives.” It is the PERA members and retirees who OWN these
funds, not the taxpayers at large and not the General Assembly. Our
mandated contributions and those of our employers are made subject to
contractual agreements and are in lieu of contributions to social
security. Nowhere is it stated that legislators may usurp the purpose
for which our retirement funds are invested to promote their own or
other’s version of our nation’s foreign policy, their own ideology or
to repay their own benefactors.
Two years ago PERA’s defined benefit plan was considered so fragile
the then State Treasurer felt it imperative to propose benefit
changes. Four months ago the State’s General Assembly forced
divestment from companies doing business with Sudan at an estimated
cost to the same defined benefit fund of up to $3,000,000. Rep.Victor
Mitchell considered it imperative that PERA’s defined benefit members
pay all costs of divestment out of their funds, thus bearing the total
financial burden for a social statement supposedly made for all
Coloradoans.
Now we have yet another “imperative” proposal known to be vigorously
promoted by foreign nationals and powerful lobbies to divest from
Iran. And yes, it’ll cost us.
Legislative oversight is not a mandate to pillage and plunder pension
funds for ANY purpose. Remember, while members of PERA’s defined
benefit plans are paying for a proliferation of divestment proposals
now, ALL Colorado taxpayers will end up paying for the legislated
decimation of PERA’s trust fund in the future.
This letter has not been edited.
Oct. 9, 2007: This is the comment I posted in response to "Darfur: Solution or
Diversion?" at Foreign Policy In Focus. My concern is no one ever
addresses the impact on public pension funds and its members. ( From CF)
Kevin and Steve, I found your article well balanced, presenting quandaries of divestment many of us are concerned about but rarely see in print. And I applaud you for that. However, as a member of a public pension fund, I and many others continue to be struck by the lack of coverage given to the impact Sudan and Iran divestment will have on public pension funds and its members. We are concerned that such divestment only targets the hard-earned savings, held in trust, of teachers, public school employees, policemen, firemen, and civil servants. No other individuals, entities, or institutions in the United States will be mandated to divest; therefore, divestment is not a shared responsibility as it should be in our democratic society. When South Africa divestment was accomplished, legislation mandates also included banking, financial institutions, purchasing policies, licensing, franchising, and distribution agreements. Why doesn't current Sudan and Iran divestment legislation include these same areas? Many see this is a form of discrimination.
Sudan and Iran divestment is, and will continue to take its financial toll on public pension funds. Additional staff must be hired to manage the divestment process which is very complicated and lengthy. Since the SEC no longer offers a free list of companies to divest, lists of companies doing business with Sudan and Iran must be purchased from private list making companies for thousands of dollars...and not just once, but quarterly and for how long no one seems to know. (As an aside, how would any private individual know what companies to divest since this information is not made public?) When the offending companies are divested, they continue to be listed on the stock exchange to be purchased by any one person or institution...except public pension funds. Companies who may have as little as 2% holdings in Sudan and Iran are on these divestment lists. The only persons who will bear the costs and losses from Sudan and Iran divestment are public pension fund members: teachers, public school employees, policemen, firemen, and civil servants. One final point...if any of these companies targeted for divestment leave Sudan and Iran, who will take their place in those countries? Food for thought.
Sept. 27, 2007: E-mail with infor about Iran divestments by Florida (From CF, Steamboat Springs)
Hello All, You may have seen this but if you haven't, here it is...the first financial figures on Iran divestment from Florida, the first state to pass such legislation. I keep running into folks who say they've been told that divestment won't cost PERA any losses. We need to make sure those people see this. Also I keep reminding people that banks, investment and brokerage firms, business and labor pension funds, mutual funds, defined contribution plans, private individuals and legislators are not mandated to divest...only PERA's defined benefit plan is targeted for divestment in legislation. Cheryl
- related article from Pensions & Investments
Sept. 26, 2007: Email to Sen. Fitz-Gerald & Sen. Gordon (From CR, Denver)
I thought you would like to see a letter I wrote to Senator Fitz-Gerald and the response I got back in the form of an attachment. I was a little confused and maybe so is she or the intern that responded. CR,Denver
Sept. 26, 2007: Email with info about Texas divestment action (From CF, Steamboat Springs)
Interesting situation down in Texas... Gut-check time for pension trustees
Sept. 26, 2007: E-mail about divestment editorial for Burma in WSJ (From CF, Steamboat Springs)
Hello All, As you will read here, WSJ initiates Divest Burma (Myanmar) campaign. While certainly tragic, as are so many places in the world, PERA and other public pension funds cannot carry the costs of constant divestment of their defined benefit plans. CF
Sept 23, 2007: Email on Ohio Divestment Compromise (From CF, Steamboat Springs)
Update on Ohio's massive Sudan-Iran SHB 151 possible compromise.