Second major Pennsylvania pension fund to sell Russian assets

The board of directors of another large public pension system in Pennsylvania voted on Friday to sell its Russia-related investments, amid bipartisan calls from lawmakers and top state officials to respond to the attack of Russia against Ukraine.

The state employee retirement system’s board vote affects about $7 million of the $40 billion in assets the system said it had at the start of 2022, he said. This exposure amounts to 0.02%.

In a statement, board chairman David Fillman cited “increased volatility, risk and potential for loss resulting from exposure to Russia-related investments” and expressed sympathy for the Ukrainians.

The board resolution also prohibits further investment in assets linked to Russia or Belarus, a key Russian ally in its attack on Ukraine.

On Thursday, the board of directors of the $72.5 billion public school employee retirement system took a similar vote to divest itself of nearly $300 million directly invested in Russia and Belarus.

Governors and lawmakers in many US states have moved to withdraw public investment from Russian companies, while encouraging private entities to do the same.

In Pennsylvania, Governor Tom Wolf and State Treasurer Stacy Garrity have called for divestment from pension systems, while lawmakers have begun drafting legislation to require it.

The Treasury Department said it sold as much of the $2.9 million it invested in Russian companies as possible.