STATEHOUSE (May 8, 2023) – State Rep. Ethan Manning's (R-Logansport) bill ensuring Indiana's public retirement fund investment strategies remain focused exclusively on maximizing returns was recently signed into law.
According to Manning, there is a growing trend of ESG or environmental, social and governance investing, which favors companies with certain standards or political agendas, including those that boycott critical agriculture, fossil fuel and firearm industries. Manning said this new law will ensure Indiana's pension system focuses exclusively on maximizing returns, and not positions on social, political, ideological or other non-financial interests.
"The goal of this law is to keep political and ideological considerations out of our state's pension investments," Manning said. "Indiana’s pension funds should only be considering financial risks and maximizing returns, and should not focus on fair-weather politics and standards that seem to be constantly changing."
Manning said the legislation will only prevent the Indiana Public Retirement System from contracting with service providers, who have made ESG commitments, for the state’s pension funds if those investments do not provide the highest financial return.
Manning said this new law will protect divestment from industries related to oil, gas, lumber, mining, agriculture and meat production-related businesses, and firearms manufacturing and related services. It will also protect divestment from companies that contract with U.S. Immigration and Customs Enforcement.
Under the new law, the treasurer of state will be responsible for investigating service providers and their possible ESG commitments, and reporting information to INPRS if a connection is found. INPRS will replace the provider unless it presents the best possible financial return.
INPRS manages the pension funds for Indiana's state employees, teachers, state law enforcement officers, public officials and others. Indiana currently has $40 billion in pension assets under management, which are invested for the exclusive benefit of its more than 500,000 members and their families.
House Enrolled Act 1008 will go into effect July 1. To follow other legislation being considered for new laws by the governor, visit in.gov/gov/newsroom/2023-bill-watch/.
-30-
State Rep. Ethan Manning (R-Logansport) represents House District 23,
which includes portions of Cass and Miami counties.
Click here to download a high-resolution photo.
