VRS opposes bill that would bar investments tied to officials without blind trusts

SB 507 would prohibit the Virginia Retirement System from investing in companies where an individual with substantial federal authority (e.g., president, vice‑president, other senior federal officials) has not complied with blind‑trust rules the sponsor described as federal CFR requirements. The sponsor argued the bill ensures alignment with federal blind‑trust standards.

Trish Bishop, director of the Virginia Retirement System, testified the Board of Trustees "unanimously opposes legislation that confines or mandates what we can or can't invest in," citing a constitutional obligation to administer the trust in the best interest of members and beneficiaries and a historic practice of maximizing return for a given level of risk. Bishop said the Board has consistently opposed measures that restrict investment discretion and noted prior statutory safeguards intended to insulate VRS from political influence.

Committee members pressed on the constitutional standard and past measures dealing with fossil fuels, ESG, and divestment; the sponsor said SB 507 differs by conditioning investments on compliance with federal blind‑trust rules. The committee heard the agency's written opposition and additional questions followed. Members later moved to pass the bill by indefinitely.

Provenance: Sponsor introduced SB 507 at SEG 079; Trish Bishop's testimony is at SEG 111–125 and committee action follows through SEG 199.