Ohio’s public pension funds must dump more than $500 million in investments with companies that do business with Iran and Sudan, lawmakers decided in a compromise brokered by House Speaker Jon Husted in June.
After considering a bill that would have required the state’s five public pension funds—adding up to more than $1.1 billion in investments—to divest all investments with terrorist ties, House leaders instead agreed to allow fund executives to voluntarily give up half of those investments by the end of the year.
Some fund participants worried about lower returns. But Missouri saw a 3.9% increase in returns last year after passing a terrorist-divestment law.
The next hurdle for the fund administrators is determining which companies should be banned. The federal government has declined to publish such a list.