Really, can I sue California’s STRS, the state’s teacher pension system? I would think that I have standing. After all, I am receiving a CalSTRS pension. Why would I sue? They are imperiling my pension. Simple.
How are they harming the integrity of my pension? It comes in three letters – ESG – and, to no great surprise, California is all into it. The initials stand for “environment, social, governance” and the plan is to impose these political abstractions on the entire business sector including finance, which also includes pension investing. In practical terms, ESG means the grab bag of leftwing causes from transgender ideology to the crusade against “systemic racism” to climate-change apocalyptics. The purpose is to strongarm businesses into leftwing causes with the use of the mother’s milk of business – capital – capital even from pension members.
The State of Utah is suing – that is, suing Standard and Poor’s (S&P) for assessing the state’s financial stability and credit worthiness according to leftwing metrics (ESG), or how diligent the state is in furthering leftwing causes such as hostility to the firearms industry and energy companies. Since the electorate of Utah doesn’t have the political sensibilities of gun controllers, BLM, the progressive ladies of The View, or the Sierra Club, the state’s financial status and bonds get downgraded by S&P acting in the role of the Left’s hatchet man. If the state’s electorate doesn’t pay heed to the fascinations of a college Sociology faculty, their bonds get branded “B” (junk). The purpose is to jeopardize the state’s financial health if they don’t come to heel.
Public-employee pension funds are particularly prone to the sway of the zealots, especially CalPers and CalSTRS in California, already under the direct thumb of an off-the-charts progressive one-party state. Out goes the standard fiduciary rule of working in the best interests of the client, in comes a redefinition of “best interests” to involve the political inclinations of those like Gavin Newsom wanting to risk the pensioners’ contributions and ultimate payout on Solyndra-type ventures and away from investments that until yesterday were pro forma.
In the case of a public-employee pension system, “best interest” can’t be limited to managers taking dictates from powerful and ideologically pretentious politicos. Contributions come from everyone from Marxists to NRA members in general funds like CalSTRS. The only real requirement is to be a teacher of the requisite number of years. The one thing that they all have in common is being retired and spoiling their grandkids. If any of them want to fund the antics of The Squad, they can do it from their pre- or post-retirement income, not beforehand after a deterioration of potential payouts to every beneficiary by Gavin Newsom’s preferences.
Kentucky’s AG, Daniel Cameron, senses the chicanery as well. He hit the mark with a letter to the state’s pension fund managers when he warned them about ESG investing because it would “violate statutory and contractual fiduciary duties.” He continued, “There is an increasing trend among some investment management firms to use money in public and state employee pension plans — that is, other people’s money — to push their own political agendas and force social change.” Those fiduciary duties might apply to California as well.
A favorite tactic to make ESG seem legitimate is to label the opinions of the Left a matter of “science” and a product of a “consensus”, therefore irrefutable, therefore “misinformation” if challenged, therefore above and beyond the standard rules of fiduciary responsibility. This new “science” – the scientific truth (?) of Leftist opinion – is actually a “science” without the scientific method. Think about it: What scientist comes from an experimental test of his/her hypothesis with the observation that the results are wrong because they violate a “consensus”? The whole exercise is as nonsensical as handing over my pension’s investment portfolio to the screeching ministrations of Greta Thunberg or Alexandra Ocasio-Cortez.
But here we are at a place where we can’t challenge the destruction of a pension because anyone who disagrees is censored as a “denier”. So, the Left gets carte blanche with the money for my old age. I don’t think so. Send lawyers, guns, and money. Oh, drop the “guns” part and let’s sue.
I identify with Warren Zevon’s predicament in his song “Lawyers, Guns, and Money”. The lyics:
“I went home with the waitress, the way I always do
How was I to know, she was with the Russians, too?
I was gambling in Havana, I took a little risk
Send lawyers, guns and money, dad, get me out of this, ha
I’m the innocent bystander
Somehow I got stuck between the rock and a hard place
And I’m down on my luck, yes I’m down on my luck
Well, I’m down on my luck
And I’m hiding in Honduras
I’m a desperate man
Send lawyers, guns, and money
The shit has hit the fan
Alright, send lawyers, guns, and money
Huh, yeah
Send lawyers, guns, and money
Uh
Send lawyers, guns, and money
Hey
Send lawyers, guns, and money
Oo, yeah
Yeah
Yeah”
Zevon’s performance of “Lawyers, Guns, and Money”:
RogerG
Read here for more:
* “Follow Daniel Cameron’s lead, purge every hint of ESG from your state’s finances”, Washington Examiner, Nov. 4, 2022, at https://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/follow-daniel-camerons-lead-purge-every-hint-of-esg-from-your-states-finances .
* “Utah pushes back against pro-Putin ESG financial analysis”, Washington Examiner, May 2, 2022, at https://www.washingtonexaminer.com/opinion/editorials/utah-pushes-back-against-pro-putin-esg-financial-analysis .