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Public asks Lansing Charter Commission to consider ethical investment clause; commissioners flag pension and administrative limits
Summary
A community group urged the commission to adopt an ethical investment clause for city-managed funds; commissioners and staff raised legal, administrative and fiduciary complexities and agreed to revisit the issue with city administration and retirees present.
Public commenter Amanda Castillo told the Charter Commission on April 29 that community members wish to meet with commissioners to discuss a proposed ethical investment clause that would guide city investments.
Castillo said she coauthored the proposal and asked the commission to schedule a meeting so authors could present the draft, urging the commission to “work together to build a more ethical, sustainable, equitable, eco friendly ... Lansing.”
Commissioners acknowledged receipt of multiple letters on the subject and debated whether the charter is the right place for investment restrictions. Commissioner Washington and others warned the commission that retirement and pension investments are complex and involve fiduciaries and collective bargaining. Washington said acting on retirement investment policy “would be incredibly problematic” and that the pension boards and fiduciaries handle those investment decisions.
Commissioners identified two distinct strands: (1) procurement or city-held operating funds and (2) pension and retirement board investments. The commission noted pension board composition and appointment processes are governed by ordinance and existing practice (police and fire retirement boards and employees’ retirement board) and that some members of those boards are elected retirees, with council representation and mayoral designees present by ordinance.
The commission did not adopt any charter language on ethical investments at this meeting. Several commissioners said the topic may be best handled case-by-case by council or by ordinance rather than placed in the charter; commissioners asked staff to invite city administration or finance staff to brief the commission and to expect the topic to return for further consideration.
Amanda Castillo and other members of the public are awaiting a scheduling response; the commission indicated willingness to hear a presentation but cautioned about legal complexities and differences of opinion among stakeholders.
