State pension funds are powerful investment vehicles with some $6 trillion in stock and bond holdings of nearly 30 million Americans.1 These are the retirement pensions of our teachers, police officers, fire fighters, public utility staff and ambulance drivers, among many others.

An underappreciated feature of state pension funds is that many of them have direct holdings in publicly-traded companies. And that means they cast votes on shareholder proposals targeting those companies. This report finds that states are disclosing very little information about their voting, while also making it extraordinarily difficult to obtain meaningful information.

A comprehensive Unleash Prosperity research project of state pensions’ direct voting patterns only yielded meaningful data for 16 states. In those states, a fairly clear picture still emerges. Most blue states vote pro-ESG – as do most red states.

State financial officers with oversight of these pension funds have a fiduciary obligation to earn the highest risk adjusted return possible. But this report finds that many state-run public pension funds are supporting radical activist proposals – which are often hostile to company and shareholder interests. These proposals, if implemented, would sacrifice returns in order to promote an agenda that prioritizes left-leaning environmental, social, and governance objectives – better known as “ESG” – as well as similarly-oriented quota policies related to race, sex, and ethnicity.

Who bears the financial burden of this politicization of pension-fund investing?

DISCLAIMER: Pension Politics is intended for educational purposes only.  It is not intended for financial advice.  Please contact a professional financial adviser before making any decisions.