Public pension money should be directed to where it will do the most good
Liz Perlman and Stephen Lerner for Common Dreams
Our country faces an affordability crisis amidst fundamental
attacks on democracy.
Public employee pension plans can either be part of the solution or part of the
problem.
We're not this guy
Late last year, New York City Comptroller Brad Lander recommended the city’s pension boards drop BlackRock and other portfolio managers that don’t have decarbonization plans up to the city’s standards. Lander’s initiative was blocked, and the editorial board of The Washington Post accused him of playing politics. But Lander argued that his recommendation was in line with the government’s fiduciary duty to protect the long-term value of pension funds, the retirement systems most public sector workers rely on—and have been paying into their entire careers. He’s right.
In this critical moment
in history, companies that are actively hastening climate change,
threatening housing security, eliminating jobs and industries, and
destabilizing our democracy and economy do not deserve our investment. Yes,
they are acting immorally but they are also very bad investments with little
promise of future returns for public sector workers. It’s not “playing
politics” to refuse to fund their efforts to dismantle our society. That’s why
we’re calling on pension boards across the country to take a hard look at their
portfolios and make the smart business decision: stop investing in companies
like this today.
The stakes could not be higher: pension funds account for $6.1 trillion in state and local defined-benefit funds alone. Every month, nearly 15 million workers across the country contribute part of their paycheck to ensure they have enough income to retire securely. This is a big pot of money and the companies that boards choose to invest it with matter.
For public sector workers, pensions are not only retirement funds,
but deferred current compensation. Workers are forsaking their hard-earned
money today for the potential of a dignified future. Meanwhile, corporations
are using that money today to further their own goals—many of which are
directly at odds with the goals, livelihoods, and futures of public employees.
EDITOR'S DISCLOSURE: Steve Lerner and I go back 40 years when he was a young textile worker organizer. Steve was a frequent house guest at our suburban DC home. On one of his visits, Cathy and I (well, mostly Cathy) introduced him to Marilyn Sniederman. I told Cathy I wouldn't recognize her skills as a yenta until the bris of their first son. When that happened, I admitted my mistake. Later on, when I went to work in the labor movement, I worked with both Marilyn and Steve in my first union job. I owe them both. - Will Collette




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