By Matt Murphy | State House News Service
March 2, 2022
Treasurer Deb Goldberg said Tuesday that she would support the divestment of state pension funds from Russian companies in the wake of that country's ongoing invasion of Ukraine, but the Democrat told a group of bipartisan lawmakers that short of action by the Legislature she cannot legally divest the state's limited holdings.
Goldberg was responding to a letter sent to her office Tuesday by House Minority Leader Brad Jones that was signed by 58 lawmakers of both parties from the House and Senate. In that letter, the legislators asked Goldberg to initiate a review of state pension fund holdings and fully divest any funds from Russian-owned companies.
"Continuing to invest our state pension funds in Russian companies constitutes tacit approval of Russia's deplorable actions. Divesting our holdings in these companies, however, will send a clear message that the Commonwealth condemns Putin's actions and supports the people of Ukraine, who have inspired the world with their incredible acts of heroism by standing firm against Russian aggression," the lawmakers wrote.
Michael Trotsky, executive director of the state's pension fund, said Monday that the Pension Reserve Investment Management Board had no investments impacted by sanctions being imposed by the United States on Russia, and had about $140 million in "exposures" to Russia.
Treasury officials at that point tried to make clear to legislators that they could not act unilaterally, but lawmakers sent the letter that they began circulating Monday anyway.
Goldberg formally responded Tuesday to say that her duty as a fiduciary requires her to "design a portfolio that is well positioned to perform, despite increased market volatility and uncertain geopolitical impacts," and that she lacks the legal authority to unilaterally divest PRIT fund holdings.
"Like you, I am horrified by Russian President Vladimir Putin's decision to invade the sovereign nation of Ukraine. I stand firmly with the brave people of Ukraine, who have chosen to defiantly defend Democracy," Goldberg wrote back to legislators.
In the past when watching humanitarian crises unfold overseas, Goldberg said the Legislature has directed the pension fund to divest from territories like Iran, Sudan, South Africa, and Northern Ireland for "humanitarian reasons."
"I welcome the opportunity to work with you on this important issue and support your efforts to divest state pension funds from Russian companies. Should you decide to act upon legislation to this effect, my office is happy to provide technical assistance," Goldberg wrote.
Sen. Walter Timilty, a Milton Democrat, filed legislation this week that would direct PRIM to divest its holding with Russian entities.
