STATEHOUSE (Feb. 28, 2023) – The Indiana House of Representatives on Monday advanced State Rep. Ethan Manning's (R-Logansport) bill to ensure Indiana's public retirement fund investment strategies remain focused exclusively on maximizing returns.
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 legislation would ensure Indiana's pension system focuses exclusively on maximizing returns, and not positions on social, political, ideological or other non-financial interests.
"Our state pensions should only be focused on maximizing returns, not on furthering social or political interests that don't have a material effect on financial risks or returns," Manning said. "Companies managing Indiana’s pensions should not boycott industries that are critical to Hoosiers, such as agriculture, fossil fuels and more. These types of industries are vital to Indiana's economy and security."
Manning said the bill would only prevent the Indiana Public Retirement System from using any ESG investing practices for the state’s pension funds if those investments are for non-financial purposes.
Manning said current state law requires these assets to be invested and managed solely in the financial interests of beneficiaries. He said this legislation would protect divestment from industries related to firearms manufacturing and related services, oil, gas, lumber, mining, agriculture, and meat production-related businesses. It would also protect divestment from companies that contract with U.S. Immigration and Customs Enforcement.
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 Bill 1008 now heads to the Indiana Senate for further consideration. For more information about this legislation, visit iga.in.gov.
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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.
