The Public Employee Retirement System is in danger due to its dangerous investments in private equity, according to the Oregonian/OregonLive article about the delay Act (Lawmakers debate bill that would delay new PERS investments in private fossil fuel firms, Jan. 23). As a PERS retiree, this concerns me.
For my retirement, I rely on PERS benefits, just like over 400,000 Oregonians and their families do. I rely on the Oregon Treasury to protect PERS and its beneficiaries from financial risk. The information that PERS invests in sectors that pose an existential threat to life on Earth startled me.
However, things worsen. As we read on, we see that these investments are hazardous and pose a risk to PERS’s financial stability. The Pause Act, according to Senator Jeff Golden, would better match investment procedures with new findings regarding the hazards associated with these funds. The new state treasurer, Elizabeth Steiner, intends to protect Oregon pensioners from the threats that climate change poses to the fund’s value, according to a Treasury Department spokesperson.
That the Treasury is aware of the financial risks associated with these investments is encouraging. However, is it aware of the Pause Act? It mandates a five-year halt to new private fund investments by the Treasury. However, according to the Treasury spokeswoman, Steiner is worried that PERS’s unfunded debt may rise if certain private equity funds are divested too soon.
As far as I can see, a five-year halt to new investments does not imply the sale of current stakes. However, it would enable us to cease creating a more significant financial gap for PERS.
Portland’s Carole Romm
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