Taxes Will Rise As Pension Funds Are Invested in Woke ESG
A New York State Teachers’ Retirement System (NYSTRS) flier notes that, over the past 30 years, investment income has made up 85% of NYSTRS funding, while 15% comes from employer and member contributions.
This is significant because, when the stock market goes down and there is a gap in funding to cover obligations, the state makes up the difference by raising our taxes or the contribution from new workers.
It is therefore essential that the state grow the fund in a safe, yet productive, manner. Recently, many state comptrollers announced with pride that their offices are investing through Environmental, Social and Governance (ESG) standards. These standards no longer take financial returns into account as much as virtue signaling as the managers are investing in politically correct, yet less productive, stocks.
Usually, it relates to directing monies toward environmental causes. That’s something to consider, given the fact that ESG investments have come back with lower returns than the S&P index. https://www.bloomberg.com/news/articles/2022-12-07/big-esg-funds-are-doing-worse-than-the-s-p-500-green-insight?leadSource=uverify%20wall