Josephs' committee will consider Senate divestment bill

HARRISBURG, May 6 – After the state Senate passed legislation that would require Pennsylvania's two largest pension funds and the state Treasurer's Office to divest from investments in Sudan and Iran, Rep. Babette Josephs, D-Phila., said she will do her part to keep the legislation moving.

Josephs, chairwoman of the House State Government Committee, has been working with Sen. Michael Stack, sponsor of the legislation (S.B. 928), to get the bill enacted. With Wednesday's Senate passage, the bill is slated to be referred to Josephs' committee.

The bill would require the withholding of Pennsylvania's pension fund investments in the Public School Employees' Retirement System, State Employees' Retirement System and Pennsylvania Municipal Retirement System from foreign companies that are helping the Sudanese government perpetuate genocide and the Iranian government sponsor terrorism. U.S. companies are already prohibited from such investments. The bill also would put the same restriction into law for the state Treasurer's Office.

Together, these entities have identified holdings with a total value of nearly $700 million that are currently directly invested in targeted companies that have significant business activities in Iran or Sudan.

"Investing in such irresponsible companies not only can pose immediate risks to Pennsylvania's funds, it also can threaten their long-term value," Josephs said. "The Commonwealth has a fiduciary responsibility to its citizens to ensure that investments made for our public funds enhance the bottom line for their beneficiaries, and socially responsible investing will help do that."

Josephs has introduced similar legislation in past sessions.

"It is our moral and social responsibility to speak out against these atrocities and do what we can to help," she said. "The Sudanese president has turned against civilians by not only using bullets, but with hunger, rape and fear. Applying economic pressure is an effective tool to use in making our voices heard."

Twenty-eight states have either passed divestment laws or divested from Iran, Sudan or both through executive orders.