Fund Urged to Dump Tobacco Stock
Directors of the state’s largest teachers union have called on the state-run teachers pension fund to divest its portfolio of tobacco stock.
On Tuesday, directors of the California Teachers Assn. voted to support a resolution urging divestiture of the stock, worth $319 million.
The move follows the lead of the Los Angeles teachers union in November and a recommendation by state Treasurer Phil Angelides in December that the group unload its tobacco stock.
“It’s kind of a disgrace that teachers would be involved in such a criminal enterprise. It kills kids,” said Gary Krane, a Los Angeles teacher and co-chairman of the CTA committee urging the union to dump its tobacco holdings.
State Controller Kathleen Connell, a member of the $110-billion California State Teacher Retirement System’s board, has stated her opposition to divesting for any reason other than sound fiscal policy.
Spokeswoman Sherry Reser said the value of the fund’s tobacco holdings has dropped about $4 million in recent months. The board has been discussing the issue and is scheduled to confer with an investment consultant about the stocks’ performance in March or April, Reser said.
Tuesday’s action directs the president of the union to recommend that the pension fund get rid of the stock, but it is not legally binding, Reser said.
The board next meets March 8.
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