John Curry: A CORE resolution opposing mandated divestment

Resolution authored by John Curry and unanimously adopted at CORE meeting October 18, 2007 and read to STRS Board by CORE President Dave Parshall

Whereas funds contributed by STRS employees and employers immediately become part of a trust fund that is no longer the property of the state; and

Whereas significant costs come with divestment, including transactions, researching replacement investments and reduced investment returns; and

Whereas STRS Board members have a fiduciary duty or legal responsibility to invest contributions for the sole benefit of the members and beneficiaries in ways that cannot be detrimental to the funded status of the plan; and

Whereas divestment departs from the accepted practice of investing pension funds on economic, not political principles; and

Whereas divestment would extend STRS further along the slope of demands for social and politically motivated and possibly financial detrimental investment restrictions; and

Whereas the activities that may trigger divestment may constitute a very small fraction of a company’s total global operation, thus harming an entity operating largely within friendly foreign nations or within the United States itself; and

Whereas all Ohio taxpayers, private corporations, citizens, and not just Ohio’s Defined Benefit participants should bear any costs of social investment mandates by the Ohio General Assembly;

Therefore, the Concerned Ohio Retired Educators resolves to:

“Support STRS pension fund investment decisions made by the STRS Board of Trustees as long as they do not involve divestiture.”

“Oppose any divestment mandate to STRS relative to companies doing business in Iran, Sudan or any other foreign country.”