Pension boards urged to be aware of terrorist connections

JEFFERSON CITY, Mo. -- State Treasurer Sarah Steelman said Monday that Missouri's 118 public pension funds could have as much as $2 billion invested in foreign companies with ties to terrorist nations.

A bipartisan group of House and Senate members joined Steelman in touting a legislative resolution calling on public pension boards to ensure no money goes toward companies that have financial relationships with governments on the U.S. State Department's list of terrorist-sponsoring nations.

That blacklist currently includes Iran, North Korea, Sudan and Syria.

"We need to be cutting off the money that in any way helps supply the terrorists with the weapons they need to hurt our soldiers," Steelman said at a Capitol news conference championing the resolution.

The legislative measure, however, would not legally force pension boards to cease such investments.

Sen. Scott Rupp, R-Wentzville, the resolution's lead sponsor, said he opted not to propose a law against such terrorist-linked investments because of concerns the Missouri Constitution would require the state to pay for the investment fund screenings.

Rupp, whose resolution is to be considered Wednesday by a Senate committee, described it as a "pro-consumer" measure. Other lawmakers embraced it Monday as a patriotic, humanitarian and "no-brainer" move. House Speaker Rod Jetton, R-Marble Hill, predicted the measure would pass quickly and easily.

Steelman has drawn national attention for her efforts to eliminate public investments with terrorist links.

Last year, The Missouri Investment Trust board, which she leads, chose Boston-based State Street Global Advisers to create a special international index fund that screens out companies with terrorism ties.

At Steelman's urging, the Missouri State Employees Retirement System board also hired a company to screen its direct investments for terror connections, although Steelman still is not satisfied with the board's efforts.

The legislative resolution encourages others to adopt a similar review.

Steelman said Missouri's various pension funds for state and local public employees have $46 billion in investments, $7.5 billion of which is invested internationally. She estimated that between $1 billion and $2 billion of that could be invested in businesses with financial ties to the four terrorist-branded countries.

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Terrorist measure is SCR17.