North Side Cook County Commissioner Bridget Gainer introduced a resolution at the Cook County Board Meeting yesterday that would divest the Cook County pension fund of any investment with any company that also does business with Iran.
According to the legislation, the resolution states, “The Cook County Board of Commissioners calls upon the Cook County Annuity and Benefit fund to fully divest from the companies within the Fund who have exposure to Iran and block the future purchase of any further shares in the companies that would create exposure to Iran.”
Current United States law already makes investment in Iran very restrictive. According to the web site Payvand, here’s how current law applies, “U.S. sanctions against Iran are very strict and comprehensive. Most day to day activities are subject to the regulation of the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which is tasked with enforcing the Iranian Transactions Regulations (ITR), a body of regulations governing the trade in goods, services, and technology between the United States and Iran. The ITR is very comprehensive – it addresses commercial, personal, charitable, and other activities.”
Current law doesn’t stop investment from foreign companies, or foreign subsidiaries, that also invest in Iran. Gainer’s resolution follows on the heels of several US Senators including Mark Kirk of Illinois introducing similar legislation on the national level.
This resolution is non binding and couldn’t have effect of law. That’s because the Cook County pension fund has its own separate and independent board. Its broad investment decision are made by that board. According to the resolution, the resolution is also largely symbolic. The Cook County pension fund currently only has .16% of the entire portfolio in companies that invest in Iran.
The Cook County pension fund has recently come under scrutiny. This summer it was revealed that the fund has $5 billion in unfunded liabilities and current assets only pay for 60% of future liabilities. Another report said the fund would run out of money entirely in 2038. All government pensions in the State of Illinois are under the perview of the State government and legislation continues making its way to reform the pension system in the entire state.
Gainer chairs the Pension Sub Committee on the Cook County Board.
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