Michigan Investment Board will divest state pension money from Russian companies

LANSING, Mich. (FOX 2) - The Michigan Investment Board announced Wednesday it had unanimously approved moves to divest any state-owned assets in Russian and Belaruisan companies, following the invasion of Ukraine which prompted a groundswell of anger and condemnation toward President Vladimir Putin.

According to the treasury department, the state will pull out investments in institutions and organizations "when market conditions allow." 

The investments affected include a portion of Michigan's retirement pension plans - about 0.06% of the portfolio, which exceeds $98 billion.

"Today, the board decided this action is more than the right thing to do," said State Treasurer Rachael Eubanks, who is the chairperson of the State of Michigan Investment Board. "We have directed the investment team to begin the divestment process. Any state assets that could be used to support and prolong Russian’s war against Ukraine runs contrary to the purpose of providing benefits to individuals who dedicate their professional lives to public service."

Last week, Gov. Gretchen Whitmer sent a letter on March 1 that urged the board to move toward divesting from Russia, following the country's unprovoked war in Ukraine. 

MORE: Russia now has the most sanctions of any country in the world

The State of Michigan Retirement Services (SMRS) pension plans provide benefits to active and retired employees. None of the money in that plan is held in Belarusian holdings. 

According to the treasury department, the plan is managed by external investment traders and sits in "low-cost international stock index funds."