listen to this articleAnyone saving for retirement needs certainty. They need to trust that their savings are safe and that the professionals entrusted with this important responsibility are focused on maximizing returns and increasing investment opportunities.
That's why the simplest strategies are the best when it comes to retirement savings and pensions for firefighters, police officers, nurses, teachers, and other public servants. Investment decisions should be made by fiduciaries and investment professionals, not politicians pursuing their own interests. agenda.
But the Arizona Senate has proposed a proposal that would prohibit the state, counties, cities, schools, and all other public entities from contracting with companies that “discriminate” in the firearms business.
First, the government is trying to teach private companies how to do business. This is a twist on free market thinking.
Second, fewer firms compete for business with local governments, and the remaining firms have less reason to lower their prices to compete. That would cost taxpayers money on everything from office supplies to bonds to building materials.
Third, companies hired to invest public pension funds for purposes other than their core business, which is to maximize investment returns and build retirement savings for important public servants such as police officers, firefighters, and teachers. This means that it will be evaluated by members of the Diet. Instead of focusing on making the best investments to take care of retired Arizonans who deserve the financial security they deserve, they'll be thinking about whether they're playing a political game.
This idea has been vetoed once before. And a referendum will still be held before it becomes law. However, it is clear that politicians are caught up in the perceived threat of so-called “ESG investing.” ESG investing considers environmental, social, and corporate governance concerns in pension investment evaluations and financing and borrowing decisions.
How about worrying about investment returns instead?
Retirement savings and investments are critical to these political games. Our state's public servants deserve a secure future built on sound investment and less interference from politicians.
No matter which way the political winds blow, it is our fiduciary duty as investors to prioritize returns to our clients. All investment decisions must be made with the interests of the beneficiaries in mind. Nothing has changed here.
But Arizona politicians' aggressive pursuit of professional money managers, especially the so-called “big three” BlackRock, State Street, and Vanguard, is hurting you, me, and all other investors. Masu. The price will be paid by taxpayers and public officials in the form of limited revenues, higher costs, restricted freedoms, and unnecessary polarization.
Free market principles and fiduciary requirements for investment professionals should drive public employee pension investment decisions. For the benefit of Arizona's future retirees, standards must be simple and unaffected by current political trends.
Pensions are the only source of retirement income for some civil servants. Many police, firefighters, and teachers are not eligible for Social Security. If attacks from politicians and regulators continue, public pensions could be dealt a devastating blow. This political activity can no longer be allowed to go unchecked. We must stop politicians and regulators from restricting investment options that reduce competition, raise prices, and lower returns.
Politics cannot jeopardize the financial security of current and future retirees. We must take politics out of pension and retirement options and continue to focus on savings, investment solutions, maximizing returns, and increasing investment choices for all Americans.
Tim Hill is the former Director of Pension Resources for the International Association of Firefighters (IAFF). He is a past president of the Arizona Professional Fire Fighters Association (PFFA) and vice president of Phoenix Fire Department Local 493. He is also a former firefighter with the Phoenix Fire Department.
