Public employee retirement systems: prohibited investments: Turkey.
The legislation underscores California's commitment to human rights and its dissent against genocide denial, particularly with regards to the Armenian Genocide. It aligns with the State's historical stance in urging Turkey to recognize its past actions while also actively proposing economic consequences for continued denial. This bill is designed to ensure that state retirement funds are not complicit in the actions of the Turkish government and seeks to promote accountability in international relations through fiscal means.
Assembly Bill No. 1320, also known as AB1320, addresses prohibited investments in the government of Turkey by California public employee retirement systems. The bill's primary intent is to restrict the Public Employees Retirement System (PERS) and the State Teachers Retirement System (STRS) from making new investments or renewing existing investments related to the government of Turkey upon the passage of federal sanctions pertaining to the Armenian Genocide. The bill establishes that these boards must liquidate any current investments in Turkey within 18 months following federal actions that impose such sanctions.
The sentiment surrounding AB1320 appears to be largely supportive, particularly among advocates for Armenian recognition and human rights. Proponents argue that the bill is a necessary action that reflects California's values relative to human dignity and justice. However, discussions may feature some dissent from those who argue about the potential economic ramifications such as loss of investment income or the appropriateness of using retirement funds for political statements.
Key points of contention likely revolve around the balance of fiduciary responsibilities against moral imperatives. There may be concerns from financial stakeholders regarding the impact of mandated divestment on the growth and safety of retirement funds. Additionally, the potential for economic repercussions, including strained international relations with Turkey, may also be debated. Critics may point out the complexities in enforcing such restrictions while maintaining the integrity of the retirement funds.