Millions Of Pennsylvania Public School Pension Funds Are Invested In Russia, With No Plan To Divest Yet
PITTSBURGH (KDKA) -- Teachers and public school employees in Pennsylvania may be surprised to learn that millions of dollars of their pension funds have been invested in Russia.
It comes as a shock to many.
"We're furious what is happening to people in Ukraine. It's a travesty. And to hear that a penny of our money is being invested in Russia is really very upsetting. We had no idea at all," Nina Esposito-Visgitis told KDKA money editor Jon Delano on Tuesday.
With every paycheck, money is withdrawn from public school teachers and employees for their retirement fund. At the same time, taxpayers through their school boards also make a contribution to that fund. PSERS, the Public School Employee Retirement System, has confirmed to KDKA that PSERS is investing in both Russia and Belarus.
It turns out that just under $300 million dollars of public teacher, school employee, and school district tax money has been invested in those countries.
"I'm very upset to hear this," says Esposito-Visgitis, the president of the Pittsburgh Federation of Teachers and executive vice president of the state federation.
Her words were echoed by Pete Dinardo, a government teacher of 35 years at Mt. Lebanon High School who says investing in Russia made no sense even before Putin's invasion of Ukraine.
"I would have rethought the decision even before this moment, but this moment is of grave concern," Dinardo said.
The $300 million represents a small part of PSERS' overall investment of $72 billion – less than one-half of one percent. PSERS does invest in 92 countries, but mostly in the United States.
Still, investing in Russia, say these teachers, is both morally wrong and financially risky given Russia's economic collapse.
"I'm not a financial person, but I would certainly know that Russia would not be a great investment," says Esposito-Visgitis.
The PSERS board chair says the board is continuing to evaluate its holdings but is not meeting until March 11. Teachers say the board should hold an emergency meeting now to start divesting these holdings.
"I think we all have our scheduled meetings and then we have like when you throw out the lesson plan because there's an invasion," says Dinardo.
"They should call an emergency meeting today, and get our money out of Russia today," Esposito-Visgitis told KDKA-TV.
No response yet on where this $300 million is invested. Is the money with index funds or with private ventures of oligarchs? No answers yet.
As for an emergency meeting, PSERS has held lots of them, and the chair can call one right now if he wishes.