Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. This is the news you need to know in the fight for a secure retirement.
Unions to Governor: Don’t Use Our Pension Funds to Prop Up WNBA Team
Connecticut Governor Ned Lamont recently floated the idea of investing the state’s pension funds in purchasing the Connecticut Sun–the WNBA team put up for sale by the Mohegan Tribal Nation, which owns the Mohegan Sun Casino, where the team currently plays. However, six public labor unions, including AFSCME Council 4, which represents nearly 30,000 public sector workers in Connecticut, have expressed serious concern about the Governor’s plans.
Union leadership released a statement, saying, “These members have put their hard-earned money into the pension fund, expecting a secure retirement, not for it to be used on a sports franchise that plays 18 games a year in Connecticut. We urge the governor to leave the distractions behind and focus on preserving public services and respecting the state employees who provide them every day.”
Private investors have also expressed interest in purchasing the Connecticut Sun, with intentions of keeping the team in-state. Opponents to Lamont’s plan reiterated that pension funds exist solely to maximize returns for the teachers, state employees, and retirees who rely on them, and should not double as a piggy bank for private sector development.
Rob Sand Makes Promises to Preserve IPERS in Iowa Gubernatorial Race
Since the ad hoc Iowa DOGE committee released its initial recommendation to close IPERS to new employees as a cost-saving measure, backlash has been swift. While many state lawmakers took to social media to express their commitment to preserving IPERS, current Iowa Governor Kim Reynolds–who formed the DOGE task force–expressed only lukewarm support for leaving IPERS alone. In an August statement, she noted that DOGE recommended, “not to touch anybody that’s in it, but to take a look at new people coming in.” Reynolds added that her daughter is a teacher in Iowa, who will one day rely on her pension in retirement.
However, Reynolds’s competition in the Iowa gubernatorial race, Iowa State Auditor Rob Sands, is making his stance clear: he’s promising no changes to IPERS if elected, keeping the system open for future teachers, firefighters, and other state employees. Sands called the IPERS proposal “laughable” and reiterated that public employees are generally paid less than their counterparts in the private sector, but have access to a pension plan to balance the pay inequity.
The House Oversight Committee Investigating So-Called “Progressive Playbook” Pension Investments
On the national front, House Oversight Committee Chairman James Comer, R-Ky, has announced plans to investigate whether states have been “discriminating” against entities with right-wing views, or investing in progressive policies that retirees “may not necessarily agree with.”
Comer wrote to the National Association of Insurance Commissioners (NAIC), saying, “The Committee on Oversight and Government Reform is investigating improper restrictions on access to capital and capital markets of individuals and entities based on political viewpoints or involvement in certain industries (such as cryptocurrency, energy, and firearms).”
“Specifically, the Committee seeks to understand how giant investment managers and pension fund managers, aided by proxy advisory firms, sidestepped or abandoned their fiduciary duties to beneficiaries to pursue a political agenda and whether new legislation is needed to protect investors,” Comer stated.
This investigation is another cog in the ideological wheel churning through not only the nation’s capital, but throughout state and local governments. The onset of the anti-ESG movement marked a turning point in bringing political views into policy decisions. And while Comer is claiming that states may be neglecting their fiduciary duties in favor of pushing progressive policies, the pendulum swing toward right-wing views is equally as dangerous.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.