Push to divest pension funds could hurt

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Retirees: Push to divest pension funds could hurt

June 7, 2007 By Mike Sever

Record-Courier staff writer

Local state government retirees are worried the war on terror is about to hit them in the pocketbook.

Some retirees are concerned about a push to have the state's five public pension funds divest of investments in companies doing business in Iran and Sudan, two countries that support terrorists.

The Ohio House has postponed voting on H.B 151, which requires the state's five public pensions funds to divest themselves of stock holdings in 26 companies that do business those countries.

House leaders are working on a compromise that would require the pension funds to adopt voluntary investment guidelines in line with the "Buy Ohio" plan rather than have mandated divestiture.

But that still could cause problems, retirees worry.

"I think the idea of not investing in Iran and Sudan is a noble idea, but to divest of all these companies would probably lead to severe depletion of the pension funds," said Jack Murphy, a district representative and a member of the Portage County chapter of Ohio Public Employee Retirees Inc.

The list of companies on the divestiture list includes Conoco Philips, Ford Motor Co., General Electric, Honda Motor Co., Boeing, Coca-Cola, and Toyota Motor Corp.,

"That's just some of the top ones," Murphy said.

The scope of the divestiture is also in question. Different groups have come up with different numbers of companies that could be affected.

"Who's left? And which country is next?" Murphy asked. He said companies that pay good rates of return could be shut out of pension investments, resulting in lower benefits for retirees.

Dorothy Stoessner, president of the local chapter, said a quick sale could depress the value of the pension fund and affect their retirement benefits. "It absolutely could affect pensions. We survive on those investments," she said.

Stoessner said the issue would be on the agenda at the group's next meeting, June 14. The chapter has nearly 300 members, but Stoessner said there are another 700 government retirees who could be affected by the divestiture.

The group meets at the Ravenna Moose Lodge, 3090 S.R. 59, starting at 11:30 a.m. Lunch is $7 and reservations must be made today by calling Becky Metzger between 11 a.m. and 4 p.m. at (330) 296-5787.

Murphy said he is advising local retirees to call their local state senator and representative to tell them to slow down and consider the ramifications.

"Call the governor and tell him to veto if it gets that far. It don't hurt to start calling him now," Murphy said.