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In Our Crosshairs

Public Employee Pensions Endangered by State Officials Playing Global Warming Politics

Washington, DC - Already at-risk public employee pension funds are being placed at further risk by state officials who are lobbying for global warming regulation and by state officials who are ignoring the risks posed by such regulation, says a new report, "Pensions in Peril: Are State Officials Risking Public Employee Retirement Benefits by Playing Global Warming Politics?," by the National Center for Public Policy Research.

The report found that:

1. Global warming regulation is a key portfolio risk for state and local pension funds.

2. A substantial minority of state and pension fund administrators (15 states and local governments managing about $1.21 in assets or 45% of all actuarial assets of state and local pension funds) are actively promoting regulation that is likely to adversely impact their portfolios and beneficiaries. These states and local governments include: California, Connecticut, Florida, Illinois, Kentucky, Massachusetts, New Jersey, New York City, New York state, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont and Washington.

3. While most state and local pension fund administrators are not actively promoting risky global warming regulation, they are not actively opposing it either.

4. State and local pension fund administrators may be breaching their fiduciary obligations to public employee-beneficiaries by promoting or failing to oppose global warming regulation that places portfolio assets at greater risk.

5. This breach of fiduciary duty is particularly serious for those pension fund systems that are underfunded and that depend on robust stock market performance to meet their future obligations. Fourteen pension fund systems among the 15 state and local governments that are promoting global warming regulation are insufficiently funded.

The report is available at http://www.nationalcenter.org/NPA575.html

Companies In The Spotlight

Walt Disney

It sure looks like Walt Disney has become an extension of the Democratic Party. Under the "leadership" of liberal CEO Bob Iger the company is burying the DVD of the ABC TV miniseries "The Path to 9/11" because the Left complained the program was biased. Because of Iger's decision shareholders are being denied an opportunity to generate revenue and the public is being denied an opportunity to learn about the events that led up to the terrorist attack on Septermber 11, 2001.  

British Petroleum

Under the leadership of group chief executive Lord Browne, BP leveraged an in-vogue liberal movement called Corporate Social Responsibility (CSR) in addressing the public’s unease with oil companies and their affect on the environment. BP sought to re-position itself as a “green” and “socially responsible” company by distancing itself from its petroleum roots and its competitors.

General Electric

We Applaud GE's Vision to Develop Efficient Products: Condemn Their Support of Excessive Greenhouse Gas Regulation.  General Electric is seeking federal regulation on global warming. With energy prices at an all time high, regulations seeking for carbon dioxide emission limits will drive energy prices even higher.  Additional energy price shocks will cause significant economic damage harming future earnings of both GE shareholders and businesses throughout the United States.

Goldman Sachs

We just love the money making machine of Goldman Sachs. Yet the Chilean land deal ocherstraed by former CEO Hank Paulson looted shareholders of a good source of revenue only to service his hobby. Making matters worse, the company has not disclosed important details surrounding the land donation including the fair-market value of the 680,000 acres of land.