Guest to Oklahoma treasurer: Keep politics out of state's pension promises

Don Keenan
·3 min read
Politically driven approach treats retirement accounts like pawns on a chessboard, guest columnist says.
Politically driven approach treats retirement accounts like pawns on a chessboard, guest columnist says.

Last month, I filed a lawsuit on behalf of thousands of other retired public employees against state Treasurer Todd Russ with one simple goal: to keep politics out of our state’s pension promises.

My entire career has been one based on service. I proudly served my country in the military for nearly two decades until I was honorably discharged due to injuries sustained on duty. I then returned to Oklahoma where I began supporting veterans as a disabled veterans employment representative for the Oklahoma Employment Securities Commission (OESC).

After my time with the state, I worked in the private sector at the Sinclair Tulsa Refinery as a human resources director, where I witnessed the benefits the oil and gas industry offers, and subsequently served as a retiree representative for OPEA for the eastern half of Oklahoma.

Thousands of Oklahomans choose to work in the public sector, in part, because of the state’s promise to them to retire knowing their retirement contributions will be professionally managed and grow to support their families into their golden years. That promise is now at risk because special interests and politicians are politicizing the pension funds thousands of Oklahomans depend on.

Politicians and their policies are supposed to help the people, their constituents. These political battles led by Treasurer Russ do the opposite and harm too many retirees. The Energy Discrimination Elimination Act of 2022 empowered Treasurer Russ to develop a list of financial institutions he alone believes are boycotting the fossil fuel industry in our state, regardless as to whether those financial institutions provide the best service at the lowest cost to Oklahoma’s retirees. That is why I’ve filed this petition to stand up on behalf of other retired veterans, pensioners, and public servants affected by Russ’ boycott list.

Treasurer Russ’ boycott list includes companies like Bank of America, JP Morgan Chase, Wells Fargo, BlackRock, and State Street. While Russ is eager to arbitrarily ban these companies from Oklahoma, he is unwilling to apply the same standards to his own office. He has refused to end the state’s financial relationship with JP Morgan, who currently has $16 billion invested in money market accounts. When questioned, Russ claimed that despite JP Morgan holding billions of Oklahoma’s dollars “it’s not really an investment with them,” which seems laughable at best and deceitful at worst.

This legislation is already leading to higher uncertainty in the bond markets, less competition and higher borrowing costs for Oklahoma. In May, Stillwater was forced to freeze a series of infrastructure projects after Bank of America’s inclusion on the boycott list meant an additional $1.2 million more in fees. As of today, Russ continues to allow Bank of America to provide credit card services because they “are not otherwise reasonably available.” Giving one politician unchecked power to determine who can and cannot do business with our state sets a dangerous precedent our retirees cannot afford.

Recently, the Oklahoma Public Employees Retirement System chose to exercise a fiduciary exemption allowing them to continue using State Street and BlackRock to manage their retirement assets. The retirement system did so after learning that divesting would result in increased costs of at least $10 million. Treasurer Russ has strenuously objected and has aggressively pushed to reverse the near unanimous vote of the Oklahoma Public Employees Retirement System Board of Trustees.

This effort to subject me and my fellow retirees to increased costs and potentially lower returns, in the name of this arbitrary boycott list, is why I filed the temporary injunction against the state of Oklahoma and Treasurer Todd Russ. These politically driven approach treats our retirement accounts like pawns on a chessboard to be moved at the whim of politicians.

There is no excuse for putting politics above the retirement security of state public servants and we must stop the politicization of pension dollars immediately.

Don Keenan is a retired Oklahoma public servant and has filed a legal action against state Treasurer Todd Russ.

This article originally appeared on Oklahoman: Special interests and politicians are politicizing the pension funds