[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6304036,"mediaKeyId","2469195-4c720c50a2c3598d22660f394e71274c","parentId",2469195,"title","Bill would direct divestment from risky Chinese entities; investment officials warn of large portfolio costs","audioSeconds",1712,"startMs",1704000,"endMs",3416000,"viewUrl","/Search/View?dp=1&key=2469195-4c720c50a2c3598d22660f394e71274c&start=1704&end=3416","thumbnailUrl","https://assets.pipeline.soar.com/2469195-4c720c50a2c3598d22660f394e71274c/thumbnail_1704000.jpg","articleUrl","/articles/6304036/Nebraska/Bill-would-direct-divestment-from-risky-Chinese-entities-investment-officials-warn-of-large-portfolio-costs","mediaUrl","https://secure.pipeline.soar.com/6304036-412cc43fc2edbd29c554086ed46a31e9/orig.mp4?Expires=1771168519&Signature=HEZwCbQ3h0zsyrl8bKV7JJ2klKlQbOHAO4hnuMaygBMl6tPM2m74-sb1kjLn7BogYvOurYt-25D0-lE3GnmnB1ed0Kjp5cyyKLh5HzRqUy0E8ulM2OFw3KUEYXv9Sm2JlevsX2hBQiDsvr5y8BN~WiOKMUemTvDIewhDlCKmkipzFhiScE8cvWayk6rvasfBKm~X91NLf7xuSACOXtICpYF6P6h8j5OzughyFi8BkwUese60Nvx42UbIO2ldtD3A3mr1Xq29tF4c3uMH55AH6fU4W-ZhYiCyFNkTmYFsdEsmlkYAaboOAud0TI9VfxDwyaFntMp2u8pDJ0Gkr17sew__&Key-Pair-Id=KUT5TJCACFTXG","author","Nebraska Legislature","date","2025-02-28T00:00:00Z","article","Sen. Bob Anderson introduced LB661 to require the Nebraska Investment Council (NIC) to divest state pension and retirement investments from Chinese entities the U.S. government has designated as high risk. Anderson said the measure would prevent losses similar to those some states suffered with investments tied to Russia and argued the bill is a \"targeted and pragmatic financial policy aligned with federal designations.\"

Proponents framed the bill as a fiduciary risk-management measure tied to national security. Auditor Mike Foley said the bill's framework is reasonable because the legislature would define off-limit entities and NIC would implement the policy; Foley said his office could audit compliance. Mary Bagalgalis of State Shield described federal lists and other authorities that, in her view, identify high-risk companies and said the bill would help protect Nebraska's teachers, first responders and other public employees from geopolitically driven losses.

NIC officials and investment staff opposed a legislative mandate to divest without detailed qualification. Ellen Hung, speaking for the Nebraska Investment Council, said NIC already follows executive orders that restrict investments in Chinese military-industrial entities and that an immediate mandate would have material costs and operational consequences. Hung cited NIC estimates, provided as a handout, that a forced divestment could produce an immediate reduction in revenue of about $575 million and increase expenses by $22 million; she said moving to ex-China mandates would likely prevent NIC from retaining top-quartile outside managers and private-market funds, reducing returns and increasing transaction costs.

NIC staff explained the mechanics and the portfolio effects. The council said China direct exposure represents a small share of the portfolio (about 2.5%), but divestment mandates would affect many strategies and about half of total assets under management because China holdings are embedded across global funds. NIC staff said selling private-market holdings quickly could require steep discounts (they cited market experience suggesting 10% discounts for buyout funds and up to 38% for venture funds) and that manager replacement and transaction costs would be material.

Committee members asked about timing, fiduciary duties, exemptions and whether state law should supersede NIC discretion. Some senators noted other states have adopted partial divestment or targeted approaches (Texas and Florida were cited for state-owned enterprise restrictions); others pressed whether the NIC had been responsive to information requests; Anderson said he had requested details about which restricted entities the state holds and had not yet received a full response.

No committee vote was taken. NIC staff said they were preparing a fiscal note and additional detail and that they have been reviewing ways to reduce China exposure methodically. Supporters urged a legislative framework to set statutory guardrails; NIC urged a measured, investment-driven process to avoid unintended losses and manager attrition.","mediaType","Video","parentTitle","Nebraska Retirement Systems Committee - 2/28/2025","oneSentenceSummary","Sen. Bob Anderson introduced LB661 to direct the Nebraska Investment Council to divest state pension and retirement plans from Chinese entities that U.S. authorities have deemed high risk.","taxTitle","2025 Legislature NE, Nebraska","taxId",77675,"location","Nebraska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6304041,"Neb. senator proposes COLA for OPPD retirees; utility warns of $45 million annual cost",1031,143000,1174000,"/Search/View?dp=1&key=2469195-4c720c50a2c3598d22660f394e71274c&start=143&end=1174","https://assets.pipeline.soar.com/2469195-4c720c50a2c3598d22660f394e71274c/thumbnail_143000.jpg","/articles/6304041/Nebraska/Neb-senator-proposes-COLA-for-OPPD-retirees-utility-warns-of-45-million-annual-cost","https://secure.pipeline.soar.com/6304041-78d1979394ef431fa73e461314a1246c/orig.mp4?Expires=1771168519&Signature=lFDAYCauBPGSeAWwrcuR4jFhVftstrU-0yJp8vX9jN7V4LsA21T1M~Y0wHDompUgcBiKpDjAflIgZlx46VyL4Qfk-9eFRRIbOsSPkIpLYv6X85Iqrf-c~53yvb3myTyzb0~Msk3rBI1FZUYqMQOnV2ea2GEAjPzLRTZLZ4sISIH0aq4DBBaxFKLFIVMdaGl6osrnZVH8Bez21RKTZfXDGjpZTukgY3i3CR5i6WEBIv~U8TfFp5rDfeC11X68z5zpfvSaTGcCz6~l~sBIedEGOuEdTHwWdnJ4Pmk1dQGQohlNlfv8mkNMZUWAcEXW6Q~Z0tu9UEwTnCI6NmE3nRKmYw__&Key-Pair-Id=KUT5TJCACFTXG","Sen. John Kavanaugh, D-Omaha, introduced LB571 to the Nebraska Retirement Systems Committee, proposing that public power districts that operate defined-benefit plans provide an annual cost-of-living adjustment (COLA) equal to the Social Security Administration's COLA to retirees who are ineligible for Social Security benefits.

The bill targets retirees from the Omaha Public Power District (OPPD) who, officials and union representatives said, do not receive Social Security but currently lack an automatic COLA on their defined-benefit pensions. \"Retirees in OPPD cannot receive Social Security benefits but do not receive a cost of living adjustment on the retirement benefits that they have earned,\" Kavanaugh said in his opening statement.

The bill drew support from union leaders and a long-time OPPD employee. Mark Salerno, president and business manager of International Brotherhood of Electrical Workers Local 1483 and a 37-year OPPD employee, told the committee the lack of COLA leaves retirees exposed to inflation. \"A fixed income in the face of inflation can be devastating for retirees,\" Salerno said, citing recent Social Security COLAs of 8.7% in 2022 and smaller adjustments in later years.

OPPD officials opposed the mandated COLA. John Thurber, OPPD's director of Treasury and Financial Operations, told the committee LB571 would require a roughly 3% annual rate increase and raise OPPD's annual required contribution by about $45 million. \"Requiring OPPD to have retirement fund COLAs would require a 3% COLA to all traditional plan participants ... and would increase OPPD's annual contribution by approximately $45,000,000 each year,\" Thurber said. He added that making COLAs mandatory in state law would require OPPD to treat the adjustments as \"substantially automatic,\" increasing the plan's liability by an estimated $420 million and reducing the funded ratio from about 74% to about 60%.

Committee members questioned funding options and timing. Several senators asked whether the COLA had been part of past collective bargaining, whether new hires are affected, and whether the timing was appropriate given funding pressure on pension plans statewide. Salerno said OPPD historically provided COLAs from 1992 through 2009 but that they were not part of the collective bargaining agreement during that period. Kavanaugh noted that 58% of current employees are covered by a newer cash-balance plan and would not benefit under LB571, and he said the pool of traditional defined-benefit participants is shrinking as new employees join the cash-balance plan.

No formal action or vote was taken at the hearing. Senator Kavanaugh closed by saying he is open to amendments and further discussions to make the bill feasible for stakeholders. The committee recorded two written proponents and no written opponents or neutrals on the bill at the time of adjournment.","Sen. John Kavanaugh introduced LB571 to require Omaha Public Power District to give Social Security–style cost-of-living adjustments to retirees ineligible for Social Security. Union and retiree advocates supported the bill; OPPD opposed it, saying it would require about $45 million annually and cut the plan's funded ratio.","actionData","errors"]

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Bill would direct divestment from risky Chinese entities; investment officials warn of large portfolio costs

Neb. senator proposes COLA for OPPD retirees; utility warns of $45 million annual cost