Contact your representative TODAY to stop HB 151
From the STRS website (which is down today, 5/20/07, for maintenance):
Proposed Legislation Impacts STRS Ohio and Its Members
House Bill 151 requires the state’s five retirement systems, including STRS Ohio, to divest themselves of foreign companies doing business in Iran. This could result in an estimated $9 billion purge of foreign securities based on the bill as introduced. In addition to costs incurred from the forced sale of assets, other costs include administrative expenses incurred for the managed funds and “lost opportunity costs” on future investments. Last week, the Ohio Retirement Study Council (ORSC) recommended the Legislature reject the “As Introduced” version of H.B. 151, sponsored by Reps. Josh Mandel and Shannon Jones.
A substitute bill is being circulated that may narrow the scope of companies to oil and gas. The cost of this proposal has not yet been evaluated. It is important to note the systems have no direct investments in Iran. The proponents are referring to this bill as a goal for Ohio citizens, however, the trust fund assets of the public pensions belong to the participants, not the state.
STRS Ohio’s executive director, Damon Asbury, has testified before ORSC and the House Financial Institutions, Real Estate and Securities Committee about this system’s concerns with the bill. The three primary concerns raised with legislators are: (1) the money in the trust fund belongs to the participants — this divestiture mandate puts a foreign policy objective above the board’s fiduciary duty to invest in the sole interest of the membership; (2) there will be significant costs of complying with this mandate, costs borne by the membership and not the public; and (3) the bill sets a dangerous precedent of using trust fund money to achieve political or social agendas. Dr. Asbury’s testimony can be viewed below. [See post below, "A letter to my Representative," 5/19/07]
The Ohio Retirement Study Council will be holding another hearing on H.B. 151 on Tuesday, May 22 at 9 a.m. in Room 114 of the Statehouse. House Bill 151 is currently being debated by the House Financial Institutions, Real Estate and Securities Committee. The next meeting of this committee is Thursday, May 24 at 11 a.m. in Room 116 of the Statehouse. With the system spending well over a million dollars a day on health care, the losses would be devastating. Click here to see the ORSC analysis.
Members wishing to voice their concern to their representatives can obtain contact information via the following link http://www.house.state.oh.us/jsps/Representatives.jsp
House Bill 151 requires the state’s five retirement systems, including STRS Ohio, to divest themselves of foreign companies doing business in Iran. This could result in an estimated $9 billion purge of foreign securities based on the bill as introduced. In addition to costs incurred from the forced sale of assets, other costs include administrative expenses incurred for the managed funds and “lost opportunity costs” on future investments. Last week, the Ohio Retirement Study Council (ORSC) recommended the Legislature reject the “As Introduced” version of H.B. 151, sponsored by Reps. Josh Mandel and Shannon Jones.
A substitute bill is being circulated that may narrow the scope of companies to oil and gas. The cost of this proposal has not yet been evaluated. It is important to note the systems have no direct investments in Iran. The proponents are referring to this bill as a goal for Ohio citizens, however, the trust fund assets of the public pensions belong to the participants, not the state.
STRS Ohio’s executive director, Damon Asbury, has testified before ORSC and the House Financial Institutions, Real Estate and Securities Committee about this system’s concerns with the bill. The three primary concerns raised with legislators are: (1) the money in the trust fund belongs to the participants — this divestiture mandate puts a foreign policy objective above the board’s fiduciary duty to invest in the sole interest of the membership; (2) there will be significant costs of complying with this mandate, costs borne by the membership and not the public; and (3) the bill sets a dangerous precedent of using trust fund money to achieve political or social agendas. Dr. Asbury’s testimony can be viewed below. [See post below, "A letter to my Representative," 5/19/07]
The Ohio Retirement Study Council will be holding another hearing on H.B. 151 on Tuesday, May 22 at 9 a.m. in Room 114 of the Statehouse. House Bill 151 is currently being debated by the House Financial Institutions, Real Estate and Securities Committee. The next meeting of this committee is Thursday, May 24 at 11 a.m. in Room 116 of the Statehouse. With the system spending well over a million dollars a day on health care, the losses would be devastating. Click here to see the ORSC analysis.
Members wishing to voice their concern to their representatives can obtain contact information via the following link http://www.house.state.oh.us/jsps/Representatives.jsp
posted by Kathie Bracy at 8:03 AM
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