Tom Golonka (Chair, Vermont Pension Investment Commission (VPIC)) thanked the House Government Operations Committee on Tuesday for listening to VPIC and the pension boards.  He noted that what they do is a tremendous obligation, and they take it very seriously, including the climate change problem. There is a 5-point plan that VPIC did which is on their website which he encouraged the Committee to read.

Golonka cautioned that the decisions of the Legislature do have an impact on the underfunding of the pension funds.  As an example, in 1970 the Legislature underfunded the pensions by $1M which today would be valued at $150M.  He reiterated that seemingly little changes matter and impact the funding status of the pension plans.

Tom Golonka (Chair, Vermont Pension Investment Commission) introduced himself to the House Appropriations Committee on Thursday and noted that the portfolio has done well when compared to pension plans in other similar states.  Vermont has always been in the top quartile when the market was both up and down. He highlighted S.42, which is a bill that was passed out of the Senate last year and is currently in the House. The bill proposes to require the Vermont Pension Investment Commission (VPIC) to review the assets of the three retirement systems to determine the extent to which they are invested in the fossil fuel industry and submit plans to divest from the fossil fuel industry by 2030.

The House Government Operations Committee returned to S.42 on Thursday. Katie Green (Deputy Chief Investment Officer, Vermont Pension Investment Commission). She shared that the Vermont Pension Investment Commission (VPIC) established an Environmental, Social, and Governmental (ESG) committee. Green noted that climate change is a "significant threat," adding that it's "not just fossil fuel" but also automobile industry, land use, and water quality. She was adamant that VPIC was accountable and transparent, which is why they created the ESG committee to report up to the commission. 

Bill McKibben from Third Act joined the House Government Operations Committee on Wednesday to discuss S.42. He noted divestment started here in Vermont years ago. Third Act was founded by McKibben, who wrote the "original book" about global warming. In LA Times and companies knew, all the way back in the 1980s, about the impact of fossil fuels and "lied about what fossil fuels can do to the environment," he claimed.

Senator Clarkson presented S.42 to the House Government Operations Committee on Friday. She introduced the bill by saying that, "many of us wanted to have happen a long time ago" and that it was a "win for everyone." The bill was the result of negotiations between Third Act, the Treasurer's Office, the Vermont Pension Investment Committee (VPIC), the Senate Government Operations Committee, and other experts.

Senator Clarkson presented S.42 to the Senate on Tuesday, positioning the bill as a "win-win." She listed a number of individuals that were involved for the bills development, including the Treasurer, the Vermont Pension Investment Committee (VPIC), and several other experts. She cast the bill as the result of "productive negotiations" lead by the Senate Government Operations Committee with with the intent of divesting fossil fuel investments while simultaneously protecting the state's pension funds and Actuarial-Defined Employer Contribution.

Tuesday

The Senate Government Operations Committee took testimony on Tuesday regarding S.42, which proposes to divest fossil fuel investments from the state's pension funds. In their previous meeting, the Committee still had not come to a consensus on several issues. Some stakeholders agreed to meet Friday and Saturday to hopefully come up with a compromise so bill could be voted out of Committee.

Legislative Counsel presented an amendment, recommended by the Treasurer, on Friday. The amendment adds a new definition of de-minimus exposure which means holding less than 2% of the overall investment. The language recommends that VPIC develop a plan which identifies stocks and securities are carbon-heavy and make suggestions on how to divest by the end of 2030 with minimum exposure of funds.

Eric Henry, the CFO of the Vermont Pension Investment Commission (VPIC) joined the House Appropriations Committee on Tuesday. He highlighted that it's important for them to be separate from the Treasurer's office to provide more transparency.

The Senate Government Operations Committee reviewed S.42 on Thursday, which would divest state pension funds from fossil fuel investments.