Rep. Kevin McCabe introduced HB 174, a bill to reform the way that state funds are managed in Alaska.
The bill seeks to ensure that fiduciaries of state funds prioritize the financial interests of the beneficiaries above all other considerations when investing public funds.
This means that investment decisions will be made solely on the basis of financial gain, rather than any external social, political, or ideological goals, his office said.
Recently a Biden Administration rule allows fiduciaries to pick and choose between financial or ideological goals, when managing other people’s money. This, without the consent of the people to whom they have a fiduciary duty, including hundreds of millions of Americans whose retirement funds are at risk.
Some of Alaska’ state funds are invested in what’s called ESG funds — environmental, social, governance funds. That includes the retirement funds and the Alaska Permanent Fund.
“This approach is perfectly in line with Alaska’s ongoing efforts to establish a comprehensive and sustainable long-term fiscal plan for the state, especially in light of the current economic challenges facing Alaska,” said McCabe. “This bill will set a new standard for investment management in Alaska, ensuring that the financial future of the state is secured for generations to come, and I am proud to introduce it.”
By preserving these principles into law, Alaska would join a growing number of states that have introduced or enacted similar legislation, demonstrating a commitment to responsible investment management and fiscal responsibility.
“Through prioritizing financial gain over external considerations, board members of the Alaska Retirement Management Board and the Alaska Permanent Fund Corporation Board will be prevented from taking any actions that seek to advance social, political, or ideological interests concerning investments entrusted to the board,” McCabe said.
The introduction of this bill marks a significant step forward in the pursuit of responsible investment management in Alaska, he added. “With its passage, citizens can continue to enjoy the many benefits of living in this great state, safe in the knowledge that their financial interests are being protected and prioritized above all else,” his press release explained.
