MOSERS board passes anti-terrorist resolution

Cory Smith

Posted online August 14, 2005 | 11:00 pm

With $6.2 billion at its disposal, the Missouri State Employees Retirement System is the state’s largest employee pension fund.

That’s why John Russell and the MOSERS board passed a resolution July 21 to keep its investments out of the hands of terrorists.

“We have to have a united front that we won’t give funds to terrorists that can be used against Americans,” the former state senator said.

The 11-member board established a two-pronged screening system for all of its investments. Currently, 17 percent of the fund is in foreign investments.

If MOSERS determines it is investing in a company that helps bankroll terrorists, the board will vote to divest in that company, according to the new resolution.

Missouri State Treasurer Sarah Steelman made the anti-terrorism measure a priority when she took office in January, though Russell said MOSERS was already discussing the issue.

“What we’ve adopted is a stronger policy,” Russell said.

The new screening process might spell the end for one MOSERS investment in particular.

MOSERS currently has $87,000 directly invested in Arab Bank, which has $32 billion in assets and offices in 30 countries. However, the Amman, Jordan-based banking system has faced a slew of domestic civil lawsuits alleging it provided compensation to families of suicide bombers. It also has been the subject of scrutiny from the U.S. Treasury’s comptroller of the currency based on suspicion of laundering money to terrorist groups such as Hamas and Al Qaeda.

Larry Kelley, a state employee for 14 years, said he’s glad the MOSERS board is taking steps to combat terrorism.

“We should know where our investments are at,” said Kelley, who works with the State Labor Development Force.

“If they’re putting (pension investments) in things that are contrary to national security, we shouldn’t want to be a part of that,” he said.

The Board of Trustees of the Missouri Investment Trust, a $23.4 million fund earmarked for arts and humanities, passed a similar motion to cease investing in terrorist-connected businesses in June.

Both the MOSERS and MIT boards will meet again in the fall.[[In-content Ad]]