[UpperPeninsulaRon]

Look at this article from the Lansing State Journal and think about how how own state feels about trusting their own pension fund to our state's economy. Our state Treasurer says that only $62 million of the state's $9 billion dollars invested (private equity amount) in state employees pension funds is in Michigan companies. That is less than seven tenths of one percent!

Put another way, if you are a state employee, you are not staking your future on the success of the state that is paying your salary. So what incentive do you have to promoting ways to encourage economic success in your own state if you do not believe in the people of the state that pay you. It is kind of different for private companies who often encourage employees to invest in the company that they work for to help motivate excellence.


Published January 31, 2008
[ From Lansing State Journal ]

Chris Andrews
Lansing State Journal


Gov. Jennifer Granholm thinks focusing $300 million in state pension funds on promising Michigan companies will help the state's economy and create jobs here.
The $300 million is a 1 percent sliver of the state's $30 billion pension portfolio and, Granholm says, an investment in Michigan's future. But critics question whether the state can make such investment decisions effectively - or whether it should even try.
State Treasurer Robert Kleine said the state has about $9 billion invested in private equity now, but only $62 million is invested in Michigan companies.

[TaxBait]

The greater question is why is it OK to invest pension funds of State employees (who are exempt from FICA because they have a government pension) in private equities while its not OK to have ordinary citizens forced retirement contributions (FICA) invested and earning an actual return. Furthermore, State benefit levels are guaranteed by taxpayers. FICA benefits are subject to reduction at the whim of Congress.

And don't get me wrong, I totally agree with your point as well. If we can't invest it in MI companies, the least they could do is buy MI debt obligations and improve our credit rating.

[michiganmoon]

Originally Posted by TaxBait

The greater question is why is it OK to invest pension funds of State employees (who are exempt from FICA because they have a government pension) in private equities while its not OK to have ordinary citizens forced retirement contributions (FICA) invested and earning an actual return. Furthermore, State benefit levels are guaranteed by taxpayers. FICA benefits are subject to reduction at the whim of Congress.

And don't get me wrong, I totally agree with your point as well. If we can't invest it in MI companies, the least they could do is buy MI debt obligations and improve our credit rating.

You are right. It would make sense to invest that federal money into American businesses. That would make the program more cost-effective in the long run and encourage US business (some of which deals with new technology/medical cures).

[UpperPeninsulaRon]

I guess that I cannot believe that the story told below did not get more than a couple of responses. The story does get better, so please read on. While investing their pension funds mostly in non Michigan companies, the state which is touting green industries also has some unusual bedfellows in their top ten equity companies. In the top ten are the big energy giants Exxon Mobil (1.5 million shares) and Chevron (900,000 shares). The Michigan pension portfolio also has big pharm Johnson and Johnson in their top ten with 1.5 million shares.

Now we hear that consumers should pay extra for their green energy for the greater good. So I guess that taxpayers should have to foot the bill and pay extra for clean energy, but state employees are pretty happy about having big oil and big pharm as major components of their own pension fund, while we should subsidize green energy.

I do not make this stuff up. Here's the link.

http://www.michigan.gov/documents/or...s_221902_7.pdf

Isn't anyone a little concerned about this seeimgly "Do as I say, not as I do" attitude?

Originally Posted by UpperPeninsulaRon

Look at this article from the Lansing State Journal and think about how how own state feels about trusting their own pension fund to our state's economy. Our state Treasurer says that only $62 million of the state's $9 billion dollars invested (private equity amount) in state employees pension funds is in Michigan companies. That is less than seven tenths of one percent!

Put another way, if you are a state employee, you are not staking your future on the success of the state that is paying your salary. So what incentive do you have to promoting ways to encourage economic success in your own state if you do not believe in the people of the state that pay you. It is kind of different for private companies who often encourage employees to invest in the company that they work for to help motivate excellence.


Published January 31, 2008
[ From Lansing State Journal ]

Chris Andrews
Lansing State Journal


Gov. Jennifer Granholm thinks focusing $300 million in state pension funds on promising Michigan companies will help the state's economy and create jobs here.
The $300 million is a 1 percent sliver of the state's $30 billion pension portfolio and, Granholm says, an investment in Michigan's future. But critics question whether the state can make such investment decisions effectively - or whether it should even try.
State Treasurer Robert Kleine said the state has about $9 billion invested in private equity now, but only $62 million is invested in Michigan companies.