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Investing Public Pensions in Fossil Fuel and AI Companies Is More Than Amoral – It’s Bad Business
Corporations are using the hard-earned money of today's workers to further their own goals—many of which are directly at odds with the goals, livelihoods, and futures of public employees.
Feb 18, 2026
Our country faces an affordability crisis amidst fundamental attacks on democracy. Public employee pension plans can either be part of the solution or part of the problem.
Late last year, New York City Comptroller Brad Lander recommended the city’s pension boards drop BlackRock and other portfolio managers that don’t have decarbonization plans up to the city’s standards. Lander’s initiative was blocked, and the editorial board of The Washington Post accused him of playing politics. But Lander argued that his recommendation was in line with the government’s fiduciary duty to protect the long-term value of pension funds, the retirement systems most public sector workers rely on—and have been paying into their entire careers. He’s right. In this critical moment in history, companies that are actively hastening climate change, threatening housing security, eliminating jobs and industries, and destabilizing our democracy and economy do not deserve our investment. Yes, they are acting immorally but they are also very bad investments with little promise of future returns for public sector workers. It’s not “playing politics” to refuse to fund their efforts to dismantle our society. That’s why we’re calling on pension boards across the country to take a hard look at their portfolios and make the smart business decision: stop investing in companies like this today.
The stakes could not be higher: pension funds account for $6.1 trillion in state and local defined-benefit funds alone. Every month, nearly 15 million workers across the country contribute part of their paycheck to ensure they have enough income to retire securely. This is a big pot of money and the companies that boards choose to invest it with matter. For public sector workers, pensions are not only retirement funds, but deferred current compensation. Workers are forsaking their hard-earned money today for the potential of a dignified future. Meanwhile, corporations are using that money today to further their own goals—many of which are directly at odds with the goals, livelihoods, and futures of public employees.
The interests of public workers and these companies dangerously diverge, but even the one area of alignment is fraught: secure return on investment.
Public pension systems across the country, including the California State Teachers’ Retirement System (CalSTERS), California Public Employees' Retirement System (CalPERS) and New York City retirement funds, are heavily invested in Blackstone, the private equity company turning profits by hiking up rents during a housing affordability crisis. RealPage, the company sued last year by the DOJ for allegedly operating a nationwide rental price-fixing scheme, has investments from over a dozen pension funds through private equity funds. Public workers are watching their deferred compensation funnel into corporate exploitation while they fight to pay their own rent or mortgages.
Palantir, the data surveillance software company whose co-founder has stated his support for public hangings and apartheid, has multi-million dollar investments from The Teacher Retirement System of Texas, the Ohio Public Employees Retirement System, CalPERS, CalSTERS and other pension funds. Palantir’s tools have been used by the military to conduct destabilizing wars around the world, by DOGE to gather and merge data on millions of US residents, endangering the safety and security of us all, and by ICE to terrorize individuals and families across the country— threatening our democracy at home and abroad.
The interests of public workers and these companies dangerously diverge, but even the one area of alignment is fraught: secure return on investment. We are almost undeniably in the midst of an AI bubble, much larger than the dot com bubble that came before. With so many pension fund portfolios overly concentrated in the tech industry, funding new data centers built on speculative calculations and crypto companies propped up by hype—Palantir, Coinbase, VC firms like Andreessen Horowitz and others, NVIDIA and many more—a shift in the global appetite for new technology could empty the pockets of millions of workers. Short-term gains are not a good predictor of long-term returns for investors like public employees, who are stuck with the terms of their retirement funds and can’t pull out when markets turn. When the editorial board of the Washington Post writes that “the job of pension fund managers is to maximize returns for retirees who depend on them,” they should take these very real—and apolitical—risks into account.
Public pension funds are an enormous engine driving the economy today, and the investment choices that pension boards make are critical to the future of the country and the world. When boards invest workers’ money, they contribute to the specific visions and plans of companies and the people who run them. And when those plans include the destruction of our environment, our right to housing and fair work, and our democracy, it’s assisted suicide. Today we are urging pension boards to think beyond short-term gains and market bubbles. We’re calling on leaders to speak out and push for change as Former Comptroller Brad Lander did. Public worker retirement money must be invested responsibly in a secure future for us all.
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Sanders Proposes 'Pensions for All' as Trump Aims to Open 401(k)s to Private Equity Vultures
"We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work," said Sen. Bernie Sanders.
Jul 17, 2025
U.S. Sen. Bernie Sanders introduced legislation Thursday aimed at addressing the nation's retirement security crisis as President Donald Trump reportedly prepared an executive order that would give private equity vultures easier access to the 401(k) plans that have overtaken traditional pensions.
Sanders' (I-Vt.) Pensions for All Act would require big corporations to either provide their workers with a pension plan that is at least as generous as the one enjoyed by members of Congress or "pay into the federal retirement system at a level that ensures all of their workers receive the same amount of retirement benefits" as lawmakers.
The senator characterized the new bill as a supplement to his proposal to expand Social Security benefits.
"We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work," Sanders said in a statement. "If we are serious about addressing the retirement crisis in America, corporations must be required to offer all of their workers a traditional pension plan that guarantees a monthly income in retirement."
"And if corporations refuse to offer a decent retirement plan, their workers must be allowed to receive the same type of pension that every member of Congress receives," the senator added. "If we can guarantee a defined-benefit pension plan for members of Congress, we can and we must provide that same level of retirement security to every worker in America."
"Every member of Congress has a guaranteed pension—for life. If it's good enough for them, it's good enough for the people who build this country."
Sanders introduced his bill after The Wall Street Journal reported that Trump is expected to sign an executive order in the coming days "designed to help make private-market investments more available to U.S. retirement plans"—a move that one critic called "a dangerous scheme to fleece savers."
"The retirement system is supposed to serve workers, not Wall Street," wrote Oscar Valdés Viera, a policy analyst with the advocacy group Americans for Financial Reform. "We need policies that strengthen retirement security and allow people to retire with dignity—not policies that invite hidden fees, reduced transparency, and elevated risk. Allowing predatory private equity and private credit funds to infiltrate 401(k)s would result in a massive transfer of wealth from small investors and workers to the richest men on Wall Street."
Supporters of Sanders' legislation similarly argued for retirement system reforms that benefit workers, not Wall Street and corporate executives.
Shawn Fain, president of the United Auto Workers—which has pushed the so-called Big Three automakers to restore traditional pension plans—said Thursday that "the billionaire class gutted pensions in pursuit of profit, and Washington let it happen."
"CEOs walk away with golden parachutes while working people walk into retirement with nothing," said Fain. "Meanwhile, every member of Congress has a guaranteed pension—for life. If it's good enough for them, it's good enough for the people who build this country. The retirement crisis is real, and it's time for Congress to act."
In a summary of the new legislation, Sanders' office observed that just 9% of private-sector workers in the U.S. currently have access to traditional defined-benefit pension plans—down from 44% in 1975.
"The results for workers have been tragic," Sanders' team continued, noting that "in our country today, nearly half of older workers between the ages of 55 and 64 have no savings at all and no idea how they will be able to retire with any shred of dignity or respect."
"If Congress can provide over $1 trillion in tax breaks for the top 1% and over $900 billion in tax breaks for large corporations," Sanders said Thursday, "please do not tell me that we cannot afford to make sure that every worker in America can retire with the dignity and the respect they deserve."
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Why Ours Became the First US Pension Fund to Cease New Tesla Stock Purchases
Tesla no longer behaves like a company focused on innovation, customer loyalty, or product integrity. It behaves like a company driven by ego.
May 08, 2025
As the controller of Lehigh County and a pension board member, I am entrusted with safeguarding public workers' retirement savings—people who fix our roads, teach our children, and keep our community running. This duty requires more than spreadsheets. It demands foresight, integrity, and courage when risks outweigh rewards. Public pensions are not just private retirements—they are public trusts. Every dollar mismanaged today becomes a broken promise tomorrow.
That's why I introduced a resolution, which our board passed, to halt new Tesla stock purchases in our actively managed funds.
Tesla's earnings have collapsed by 71% compared to last year. Auto revenues are down 20%. Sales in Germany plummeted 76% in February. Tesla lost 49% of its market share in China while BYD gained 161%. General Motors, once dismissed as outdated, now leads domestic electric Vehicle sales with a 50% increase in 2024. Its price-to-earnings ratio, how much investors pay for every dollar the company earns, is wildly inflated compared to industry norms. That kind of mismatch isn't a vote of confidence; it's a flashing warning light.
Public pension boards have long been treated as silent partners in the economy. But silence is no longer neutral. We are shareholders in the future, and that gives us responsibility.
But the numbers tell only part of the story. Tesla is bleeding trust.
The company's CEO, Elon Musk, has made himself a spectacle. He dismantled Twitter's identity on a whim, and now, by becoming a symbol of political division, he's destabilizing one of America's most recognizable brands. The consequences are already here: public walkouts, showroom protests, declining global sales.
For those of us managing public money, those signs matter. Tesla no longer behaves like a company focused on innovation, customer loyalty, or product integrity. It behaves like a company driven by ego. That is not a foundation we can trust with our employees' retirements.
This is why we voted to pause. We also requested that our investment consultant provide a complete accounting of our exposure.
We are not alone in this concern. Dutch and Danish pension funds have already divested. Canada's largest public-sector union has called for action. In the U.S., state treasurers and union leaders are beginning to raise similar alarms. Momentum is building, and it's grounded in a simple reality: Fiduciary responsibility must be insulated from erratic leadership.
Tesla has spent years fighting off unions, firing organizers, intimidating workers, and refusing to sign collective bargaining agreements. But now, the stability it has rejected might be the only thing that can restore what it has lost. Unions don't just raise wages, they stabilize companies. They create guardrails that protect against reckless leadership and ensure that decision-makers are accountable not just to shareholders, but to the people who build the product. A unionized workforce would offer not just internal structure, but public credibility. When workers have power, companies are held to account.
I urge public pension funds nationwide, especially those shaped by organized labor, including the United Auto Workers, to look hard at their Tesla holdings. These funds represent the collective strength of working people. They should not underwrite volatility, reward self-interest, or ignore risk. Coordinated action by labor-aligned funds can do more than shift portfolios; it can send a clear message to the market: Long-term value isn't earned through celebrity or chaos, but through companies that treat their workers, customers, and shareholders like they matter.
There is a connection between morality and capitalism. Profit built on spectacle crumbles quickly. But profit built on trust, stability, and accountability, that endures. That's the kind of return our retirees deserve.
Public pension boards have long been treated as silent partners in the economy. But silence is no longer neutral. We are shareholders in the future, and that gives us responsibility. We can't build a just economy while funding its collapse. If our dollars prop up instability, then silence is complicity.
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