HB 2571 The Public Pension Protection Act

01/24/2025

The Public Pension Protection Act ensures that Oregon’s public pension plans always act in the fiduciary best interests of taxpayers and pensioners. This is a basic, common-sense standard—one that aligns with the expectations Oregonians already have for their personal retirement plans whether it’s PERS or an employee public plan. It reverses or at least slows down the troubling trend of unfunded actuarial accrued liability.

HB2571 is necessary because two other bills—SB681 in the Senate and HB2200 in the House—propose directing the Treasury to prioritize Environmental, Social, and Governance (ESG) type investing over financial returns.

  • SB681 would impose a moratorium on fossil fuel investments.
  • HB2200 pushes for a “carbon-free” investment fund by 2050.

ESG investing such as this focuses on factors like carbon intensity, employee diversity, and political donations—none of which are directly tied to the fiduciary responsibility of maximizing returns for taxpayers and pensioners. It’s impossible to implement these ESG-driven bills without violating fiduciary duties, which require investments to prioritize financial risk and returns. This isn’t just theoretical—recent court rulings, such as one against American Airlines, have shown that ESG-focused investing can be deemed disloyal and harmful to beneficiaries.

Proponents of ESG legislation claim their bills don’t conflict with fiduciary duties. But if that were true, why would new laws be needed? The Treasury already has the authority to make investments in the fiduciary interest of the fund, ESG or otherwise.  These bills are designed to provide political cover for shifting investment priorities that may risk the integrity of the fund.

Contact Chair Thuy Tran and the other committee members, urging them to protect the interests of taxpayers and pensioners by providing a hearing.

Rep.ThuyTran@OregonLegislature.gov
Rep.DaciaGrayber@OregonLegislature.gov
Rep.RickLewis@OregonLegislature.gov
Rep.CourtBoice@OregonLegislature.gov
Rep.PaulEvans@OregonLegislature.gov
Rep.AlekSkarlatos@OregonLegislature.gov
Rep.MariWatanabe@OregonLegislature.gov

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