Times Union
Heather C. Briccetti
There’s a troubling trend in New York that is putting the financial well-being of our hardworking municipal employees at risk.
Environmental activists continue to push our state Legislature, governor’s office, and the New York City mayor to divest from fossil fuels. Up until now, their efforts haven’t seen much success. But recently, some of these same officials have shown a willingness to play politics with New Yorkers’ financial future thanks to the demands of a small, but vocal group of activists who want to dictate where pension fund managers can and can’t invest.
Research has shown that divestment substantially harms pension fund financial performance over the long term. But that hasn’t stopped these same political leaders from considering legislation that would mandate the state’s $200 billion pension fund dispose of many of its energy production company investments.
This is despite objections from state Comptroller Tom DiNapoli, who is the sole trustee of the state pension fund and has opposed divestment mandates for years. Diversity in investments, he says, is important to ensuring the pension fund’s long-term value, “including the energy sector, where fossil fuels continue to play an integral role in powering the world’s electricity generators, industry, transportation and infrastructure.”
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