Indiana Anti-ESG Bill Could Cause US$6.7 Billion in Pension Return Losses

State employees in Indiana could lose as much as US$6.7 billion in pension returns in the next decade if an anti-ESG state House bill passes. House Bill 1008 looks to sever ties with banks that have certain ESG policies, with those in favour of the bill arguing that these lenders are discriminating against Indiana businesses like coal companies and firearm makers. The Indiana Public Retirement System (INPRS) has estimated that this would cause a significant loss in pension returns, with updated fiscal analysis of the legislation showing that over the next decade it could see investment returns drop on defined-benefit funds by US$6.4 billion , and defined-contribution funds by US$300 million. That drop in returns would cut INPRS’ estimated annual return on investment from 6.25% to 5.05%. A recent report by non-profit the Sunrise Project also said that anti-ESG campaigns by US Republican state officials aiming to impede financial institutions could cost American taxpayers up to US$708 million in “unnecessary” interest payments.  

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