California’s two largest public pension funds are to face strong pressure to divest financial holdings connected to Russian assets in the wake of the Ukraine invasion after a bipartisan group of California lawmakers announced its intention to force such moves.
The bill, which would take effect immediately if passed and signed into law, is supported by about 20 California lawmakers
Mike McGuire, California State Senate Majority Leader, announced on Monday he plans to introduce a bill that would require the California Public Employees’ Retirement System and California State Teachers’ Retirement System to disentangle themselves from investments tied to Russia where they recently held more than $1.7 billion combined in such assets.
Stressing that they must stand strong for the people of Ukraine, McGuire added that California has to use its economic power to stop Putin by enacting financial divestments.
According to Megan White, a spokesperson for the pension fund CalPERS, which manages an investment portfolio of more than $500 billion, although the fund is not directly invested in Russian debt, its investments linked to Russia fluctuate in value between about $900 million and $1.1 billion.
Noting that their fund supports the people of Ukraine, CalPERS CEO Marcie Frost said that CalPERS investments in Russia total less than one percent of their total portfolio and announced taking appropriate measures to protect the interests of its members.
Meanwhile, a growing number of state, local, and international pension funds have sold off their Russian assets or are considering doing so.
Among the first that moved early to divest its Russian holdings was Colorado’s public pension fund which pulled last week $7.2 million invested in Sberbank which was hit by federal sanctions.
Lawmakers in New York City, Illinois, New Jersey, New York, and Pennsylvania have also introduced or are exploring bills to force divestment in Russia and its ally Belarus.
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