Pension Funds Name Sudan-Tied Holdings

AUSTIN (AP) – The multibillion-dollar state pension funds for teachers and public employees have only a small percentage of their holdings invested in companies identified as doing business in Sudan, though some total millions of dollars.

The $114.8 billion Teacher Retirement System has identified $62 million in six such companies. The $25 billion Employee Retirement System identified $3.5 million in one company.

Identification of the investments is part of a new state law on divestment of the pension funds from companies that do business in Sudan. The law is meant to exert pressure to stop atrocities in Darfur.

The pension funds must next notify the companies that they may become subject to divestment. Employee Retirement System Chairman Bill Ceverha said the new law does not require immediate action.

The Teacher Retirement System’s investment policy says if companies don’t “remedy their ties to Iran and Sudan,” divestment could occur if comparable investments offering similar quality, return and safety are available.

(Copyright 2008 by The Associated Press. All Rights Reserved.)