To The Editor:
Re: December 15 opinion piece, "Vermonters have spoken loudly."
Individuals calling on the Vermont pension to divest from fossil fuels are missing the larger point: Divestment has no tangible impact on reducing carbon emissions but could have an enormous negative financial impact on the pension and the retirees who depend on it. The state treasurer's office calculated fossil fuel divestment would cost retirees $10 million per year in lost returns and $8.5 million in implementation fees.
This is why Treasurer Beth Pearce has been saying for years that divestment is “counter to our fiduciary responsibilities to the fund and its beneficiaries.” And she is not alone. The manager of California’s state teachers’ pension, Chris Ailman, has also noted the negative costs to the pension, saying, “I’ve been involved in five divestments for our fund. All five of them we’ve lost money and all five of them have not brought about social change.”
Whatever one's views on climate change, let’s not risk pensioners’ livelihoods on a purely symbolic campaign. The fact is our society and economy still uses fossil fuels and whether or not our pension fund owns stock in these companies will have no impact on overall use of fossil fuels. Vermont needs practical solutions that actually help Vermonters.
Marie Leotta
Waitsfield
