HB 174 reforms state investment policies to focus on financial goals over social-environmental goals

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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.

4 COMMENTS

  1. Well somebody is thinking clearly. Make money by smart business decisions not by beliefs and federal pressure.

  2. Ain’t it about time to shear the sheep again? Hey all you P.E.R.S. people out there, how much did you lose on your retirement last year? And the de-dollaring is right around the corner. All those oversea dollars gotta go somewhere and buy something. Smart money’s on 40 acres and a mule. Or a skiff and a gillnet.

  3. This bill is an attempt to make his constituents think he is a conservative and flat out he is not a conservative nor is he republican McCabe is a RINO and plays the long game of deceit to retain power and stay in office he was all in on ESG policies when it came to CARBON CREDITS soon to be carbon taxes when the cost of energy skyrockets due to his support of ESG McCabe rubber stamped the carbon bills through his committee by asking weak questions with little to no follow up questions I could go on and on and on this year has been a big eye opener when it comes to the falseness of Rep McCabe so forgive me if I am not excited about some false bill he knows has no possible way of passing so he can look virtuous to voters in his district he wrote an oped on alaskawatchman in support of carbon credits and the response from the community was astoundingly clear how the community is beginning to feel about Rep McCabe the comments were longer then the article itself just yesterday he suggested another Rep should not be allowed to speak about covid because it’s to painful maybe what he ment was the truth commings out was painful McCabe is a RINO open your eyes to the truth

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