Vermont 2025-2026 Regular Session

Vermont Senate Bill S0072 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	BILL AS INTRODUCED S.72
2	2	2025 Page 1 of 7
3	3
4	4
5	5	VT LEG #379759 v.1
6	6	S.72 1
7	7	Introduced by Senators Perchlik, Clarkson, Cummings, Gulick, Harrison, 2
8	8	Major, Vyhovsky, Watson and White 3
9	9	Referred to Committee on 4
10	10	Date: 5
11	11	Subject: State Treasurer; Vermont Pension Investment Commission; 6
12	12	investment and oversight of retirement systems’ assets; fossil fuel 7
13	13	divestment 8
14	14	Statement of purpose of bill as introduced: This bill proposes to require the 9
15	15	Vermont Pension Investment Commission to (1) on or before December 15, 10
16	16	2025, review the carbon footprint of the holdings of the Vermont State 11
17	17	Employees’ Retirement System, the State Teachers’ Retirement System, and 12
18	18	the Municipal Employees’ Retirement System, and (2) develop a plan to divest 13
19	19	the holdings of the Vermont State Employees’ Retirement System, the State 14
20	20	Teachers’ Retirement System, and the Municipal Employees’ Retirement 15
21	21	System from the fossil fuel industry by December 31, 2030 with further 16
22	22	divestment from any private investments that contain assets in the fossil fuel 17
23	23	industry by December 31, 2040. 18
24	24	An act relating to divestment of State pension funds of investments in the 19
25	25	fossil fuel industry 20 BILL AS INTRODUCED S.72
26	26	2025 Page 2 of 7
27	27
28	28
29	29	VT LEG #379759 v.1
30	30	It is hereby enacted by the General Assembly of the State of Vermont: 1
31	31	Sec. 1. PUBLIC PENSION FUNDS; FOSSIL FUELS; VERMONT 2
32	32	PENSION INVESTMENT COMMIS SION; PLAN AND REPORT 3
33	33	(a) Intent. 4
34	34	(1) It is the intent of the General Assembly that the Vermont Pension 5
35	35	Investment Commission build upon its effective efforts to manage the State’s 6
36	36	financial risks to climate change, including investing in low carbon indexes, 7
37	37	successfully engaging with fossil fuel and other companies, and supporting 8
38	38	initial studies and reviews on climate change. 9
39	39	(2) It is also the intent of the General Assembly that, on or before 10
40	40	December 31, 2030, the Vermont Pension Investment Commission shall, 11
41	41	consistent with sound fiduciary practice, including consideration of any 12
42	42	expected increased funding requirements for the actuarially determined 13
43	43	employer contribution (ADEC) and administrative costs, and subject to any 14
44	44	exceptions, divest the holdings of the Vermont State Employees’ Retirement 15
45	45	System, the Vermont Teachers’ Retirement System, and the Vermont 16
46	46	Municipal Employees’ Retirement System from the fossil fuel industry. 17
47	47	(3) The General Assembly also intends that the Vermont Pension 18
48	48	Investment Commission establish a long-term goal to divest from any private 19
49	49	investments that contain assets in the fossil fuel industry on or before 20 BILL AS INTRODUCED S.72
50	50	2025 Page 3 of 7
51	51
52	52
53	53	VT LEG #379759 v.1
54	54	December 31, 2040, if the Commission determines that such divestment is 1
55	55	consistent with sound fiduciary practice. 2
56	56	(b) Definitions. As used in this section: 3
57	57	(1) “Carbon footprint” means the extent to which holdings are invested 4
58	58	in stocks, securities, or other obligations of any fossil fuel company or any 5
59	59	subsidiary, affiliate, or parent of any fossil fuel company. 6
60	60	(2) “De minimis exposure” means the aggregate amount of all fossil fuel 7
61	61	holdings in the portfolio amounting to less than two percent of the aggregate 8
62	62	amount of all funds invested. 9
63	63	(c) Review. On or before December 15, 2025, the Vermont Pension 10
64	64	Investment Commission, in consultation with the Office of the State Treasurer, 11
65	65	shall complete a review of the carbon footprint of the holdings of the Vermont 12
66	66	State Employees’ Retirement System, the Vermont State Teachers’ Retirement 13
67	67	System, and the Vermont Municipal Employees’ Retirement System. 14
68	68	(d) Plan. 15
69	69	(1) Divestment. Except as provided in subdivision (2) of this 16
70	70	subsection, the Commission, in accordance with sound investment criteria and 17
71	71	consistent with fiduciary obligations, including consideration of any expected 18
72	72	increased funding requirements for the actuarially determined employer 19
73	73	contribution (ADEC) and administrative costs, shall develop a plan to divest 20
74	74	any holdings identified in the review described in subsection (c) of this section 21 BILL AS INTRODUCED S.72
75	75	2025 Page 4 of 7
76	76
77	77
78	78	VT LEG #379759 v.1
79	79	on or before December 31, 2030. The Commission shall include in the plan 1
80	80	consideration of the State’s long-term goal of divestment from any investments 2
81	81	that are exceptions to the plan pursuant to subdivision (2) of this subsection on 3
82	82	or before December 31, 2040. 4
83	83	(2) Exceptions. Until such time as the Commission deems divestment to 5
84	84	be prudent and consistent with sound fiduciary practice, the following holdings 6
85	85	are exceptions to the plan: 7
86	86	(A) de minimis exposure of any funds held by the Commission to the 8
87	87	stocks, securities, or other obligations of any fossil fuel company or any 9
88	88	subsidiary, affiliate, or parent of any fossil fuel company; and 10
89	89	(B) private investments that contain fossil fuel company stocks, 11
90	90	securities, or other obligations of any fossil fuel company or any subsidiary, 12
91	91	affiliate, or parent of any fossil fuel company. 13
92	92	(3) Definitions and methodology. The Commission shall include in the 14
93	93	plan described in this subsection: 15
94	94	(A) a definition for “fossil fuel company”; and 16
95	95	(B) a method for determining the metric of the portfolio’s carbon 17
96	96	footprint that allows for an exemption of private investments for the purpose of 18
97	97	determining the de minimis exposure. 19 BILL AS INTRODUCED S.72
98	98	2025 Page 5 of 7
99	99
100	100
101	101	VT LEG #379759 v.1
102	102	(e) Report. 1
103	103	(1) On or before February 15, 2026, the Commission shall submit a 2
104	104	report on the review described in subsection (c) of this section to the House 3
105	105	Committee on Government Operations and Military Affairs and the Senate 4
106	106	Committee on Government Operations and to the Joint Public Pension 5
107	107	Oversight Committee. The report shall include any recommendations for 6
108	108	legislative action, if necessary, to implement the divestment plan. 7
109	109	(2)(A) On or before September 1, 2026, the Commission shall submit a 8
110	110	report on the plan described in subsection (d) of this section to the House 9
111	111	Committee on Government Operations and Military Affairs and the Senate 10
112	112	Committee on Government Operations and to the Joint Public Pension 11
113	113	Oversight Committee. The report shall include any recommendations for 12
114	114	legislative action, if necessary, to implement the divestment plan. 13
115	115	(B) Pursuant to 2 V.S.A. § 23, with approval of the Speaker of the 14
116	116	House and the President Pro Tempore, as appropriate, the House Committee on 15
117	117	Government Operations and Military Affairs and the Senate Committee on 16
118	118	Government Operations may each meet up to one time when the General 17
119	119	Assembly is not in session to evaluate the report described in subdivision (A) 18
120	120	of this subdivision (e)(2). 19
121	121	(3) Beginning on January 15, 2027, and annually thereafter until January 20
122	122	15, 2040, the Commission shall submit a report to the House Committee on 21 BILL AS INTRODUCED S.72
123	123	2025 Page 6 of 7
124	124
125	125
126	126	VT LEG #379759 v.1
127	127	Government Operations and Military Affairs, the Senate Committee on 1
128	128	Government Operations, and the Joint Public Pension Oversight Committee on 2
129	129	the progress of divestment described in this section. The report shall also 3
130	130	include: 4
131	131	(A) an update on the composition and percentage of exposure of any 5
132	132	investments exempt from the divestment plan pursuant to subdivision (d)(2) of 6
133	133	this section; and 7
134	134	(B) a summary of the fee impacts and any instance of excessive 8
135	135	charges or demands related to the rebalancing of the funds consistent with the 9
136	136	implementation of this act. 10
137	137	(4) On or before January 15, 2041, the Commission shall make a final 11
138	138	report to the House Committee on Government Operations and Military 12
139	139	Affairs and the Senate Committee on Government Operations and the Joint 13
140	140	Public Pension Oversight Committee regarding completion of divestment 14
141	141	described in this section. 15
142	142	Sec. 2. DIVESTMENT PLAN; VERMONT PENSIO N INVESTMENT 16
143	143	COMMISSION; APPROPRIATION 17
144	144	In FY 2026, the amount of $127,000.00 is appropriated to the Vermont 18
145	145	Pension Investment Commission to establish one staff position to support 19
146	146	improvements and efficiencies in the administration of the Commission and to 20
147	147	meet the review, planning, and reporting requirements of this act. The 21 BILL AS INTRODUCED S.72
148	148	2025 Page 7 of 7
149	149
150	150
151	151	VT LEG #379759 v.1
152	152	appropriation to the Commission shall be distributed from the following 1
153	153	funding sources pursuant to the allocation set forth below: 2
154	154	(1) 40.86 percent from the Vermont State Retirement Fund, established 3
155	155	in 3 V.S.A. § 473; 4
156	156	(2) 44.01 percent from the Vermont Teachers’ Retirement Fund, 5
157	157	established in 16 V.S.A. § 1944; and 6
158	158	(3) 15.13 percent from the Vermont Municipal Retirement Fund, 7
159	159	established in 24 V.S.A. § 5064. 8
160	160	Sec. 3. EFFECTIVE DATE 9
161	161	This act shall take effect on passage. 10