WHEREAS:

AFSCME’s 1.6 million active and retired members have more than $1 trillion in retirement assets invested in more than 150 public pension systems across the country. The magnitude of these assets can make us a major force in the financial markets; and

WHEREAS:
To ensure that plan participants have a voice, AFSCME and its affiliates work to identify and take advantage of opportunities for members, retirees and allies to be appointed or elected as trustees; and

WHEREAS:
AFSCME works to ensure our members’ financial security and to give those members who serve as trustees on public retirement systems the tools to be effective in those positions. To fulfill their mission, trustees and staff of public pension systems in the United States must invest billions of dollars prudently, ensure sufficient funds will be available to pay retirement benefits many years into the future, and make certain systems are in place to pay retirement benefits in a timely and accurate manner; and

WHEREAS:
The current financial crisis was brought about by a stock market focused on the short-term approach to corporate returns and fueled by excessive executive compensation, poor corporate governance, including poor risk management practices at companies, and lax oversight of capital markets; and

WHEREAS:
Many studies have demonstrated the positive correlation between good corporate governance practices and corporate performance; and

WHEREAS:
AFSCME’s program of trustee education and activistism and its efforts to improve corporate governance in the companies owned by worker pension funds have made our union a recognized leader in this area.
 
THEREFORE BE IT RESOLVED:
AFSCME will continue to work to ensure that retirement money is invested wisely so that the retirement benefits promised to public employees are safe and secure; and

BE IT FURTHER RESOLVED:
AFSCME and its affiliates will continue and expand efforts to get AFSCME members, retirees and allies elected or appointed to public pension boards; and

BE IT FINALLY RESOLVED:
AFSCME will support our members, retirees and allies who are trustees of public pension funds to exercise their fiduciary duty by providing them with materials, training and technical assistance to ensure that the funds vote their proxies in the companies in which they own stock in accordance with best practices.
 
 
SUBMITTED BY: 
Veronica Montgomery-Costa, President and Delegate
AFSCME Council 37
New York