The Indiana Deferred Compensation Committee voted to eliminate public retirement assets from the funds as part of the state’s effort to divest from Chinese entities and funds prioritizing environmental, social and governance practices.
Comptroller Elise Nieshalla and Treasurer Daniel Elliott praised the pension system’s “speedy action” following 2023 legislation requiring divestment.
Indiana last year became the first to enact a law requiring the state’s public pension system to gradually divest from certain Chinese companies.
Indiana passed a law in 2023 directing the Indiana Public Retirement System board to refrain from making investments aimed at environmental, social, and governance issues.
Indiana should move from ad hoc public retirement benefit increases to a long-term approach that guarantees former public employees a 13th check or cost of living adjustment, or COLA, annually, an interim committee recommended Tuesday.
House Bill 1008 has been significantly watered down since it was first introduced, but Republicans say the anti-ESG legislation still accomplishes its intent.
Indiana’s public pension system over the next several months will consider participation in a $1 billion economic-development initiative proposed by outgoing Republican Gov. Mike Pence.
Mayor Joe Hogsett wants to replace traditional pensions for future employees with a retirement option more like a private-sector 401(k) as a way to help erase the city’s multimillion-dollar deficit.
The drop in oil prices since July left more money in consumer bank accounts, but it was costly to Indiana’s pension funds.
