Rep. Diehl: Stop politicizing Oregon’s pension fund

By Oregon State Represenative Ed Deihl,

The base bill is bad enough, but this gut-and-stuff amendment to HB2200 is worse (note the amendment is not yet published on OLIS, but is shown below.) The Oregon State Treasurer aims to decarbonize PERS at the expense of its financial health. The amendment fundamentally conflicts with the fund’s pecuniary (monetary) duty to its beneficiaries. The biggest red flag? The bill explicitly shields the Treasurer and the Oregon Investment Council from any liability for the inevitable financial consequences. If “going green” were truly in the best financial interest of pensioners and taxpayers, why would the Treasury need protection from lawsuits? If this were a sound investment strategy, there would be no need for legislative intervention or legal immunity. The reality is clear: This amendment politicizes pension fund management by prioritizing climate activism over fiduciary duty. Oregon’s public employees and taxpayers deserve better. PERS exists to secure retirement futures, not to bankroll an ideological agenda with uncertain, speculative returns. This amendment is not yet publicly posted, but plans are in motion to fast-track it with a hearing in the Emergency Management, General Government, and Veterans Committee as soon as Thursday. Oregon taxpayers and retirees—you are on the hook if this fund underperforms. Now is the time to speak up and demand responsible stewardship of PERS! Reject HB 2200 and protect Oregon’s pension fund from reckless, politically motivated investment strategies.

The bill says “Whereas the urgency justifies taking every possible action in the fund portfolio to reduce investment risks associated with a rapidly changing climate.” Supporters of this bill believe that if Oregon removes PERS carbon investments, we will reduce wildfire risk. Sorry, that’s not at all how investments, forest management, or the environment work.

It calls out that the transition to green investments must be “fair, collaborative, and inclusive.” Huh?!

Oregon’s PERS is already under water, it’s not returning enough in investments to cover the payouts. Oregon taxpayers are already on the hook for billions, this will just make it worse. The time to speak out is now.

A sound alternative: My colleagues and I have introduced another bill that would protect PERS from activist investing. HB2571, the Public Pension Protection Act, assures that the Treasury invests solely in the monetary interest of the fund. Democrat leadership won’t give it a public hearing. They also denied a hearing during the 2023 session.

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