Activists and advocates gathered Thursday in Augusta to demand that the Maine Public Employee Retirement System follow a law directing it to divest assets from fossil fuel investments. Courtesy of Divest Maine

Advocates gathered at the headquarters of the Maine Public Employees Retirement System in Augusta on July 11 to urge the pension fund to implement L.D. 99, a law directing MainePERS to divest its assets of fossil fuels.

In the past year, the advocacy group Divest Maine has increased its pressure on MainePERS to implement L.D. 99 and divest from fossil fuels by 2026. According to Divest Maine, its efforts have resulted in MainePERS being questioned by the Maine Legislature’s Labor Committee on its lack of progress on L.D. 99 and consistent meetings between Divest Maine members and MainePERS leadership.

MainePERS initially agreed to look into public equity indexing approaches that achieve both financial targets and lower fossil fuel exposure that other pension funds have taken on. However, ahead of the July board meeting, MainePERS released a memorandum about their public equity investment review that upholds its inaction on fossil fuel divestment.

“This is a dismissive and incomplete response and we believe that MainePERS excluding fossil fuels from its public equities is an achievable first step that MainePERS can take to begin implementing L.D. 99 in good faith,” said Scott Budde, an investment analyst who consults with Divest Maine.

Hope Light, Divest Maine’s campaign manager, said at Thursday’s rally that actions taken by “other significant investors” to divest from fossil fuels shows that it is possible for MainePERS to do the same.

“No one wants MainePERS to do poorly or lose money in the process of ditching fossil fuels,” Light said. “But the evidence suggests that staying invested in them is a losing strategy. One thousand six hundred and thirty-four institutions worldwide are divesting from fossil fuels, 12% of which are pension funds. MainePERS has been asked by the Legislature to find a way to responsibly follow suit, and still they refuse.”

Linda Woods, a retired public school teacher, spent 34 years in Maine public school system and contributed to the Maine Public Employees Retirement System during that time. Woods spends her retirement voicing her concerns about climate change.

“When I receive notification of a MainePERS direct deposit into my account, I feel like I am accepting dirty money,” she said at the rally. “My very income is contributing to fossil fuel growth and development. … Like many retired teachers, I need that monthly deposit in order to pay my bills. I also understand that divesting is a complicated process. When I worked on L.D. 99, I encouraged the Legislature to give the MainePERS board time to safely divest in a responsible manner. L.D. 99 was passed three years ago in 2021. To my knowledge, the MainePERS board has made no progress toward divesting.”

Sue Inches, an author, educator and environmental advocate who served in the Maine state government for 14 years, pointed out that climate change caused by fossil fuels is having an financial impact on MainePERS recipients.

“Maine property insurance rates will rise 19% this year, the second highest increase in the country, due to storm damage caused by climate change caused by supplying and burning fossil fuels,” Inches said. “This means that the dividends Maine retirees get from fossil fuel investments have to be used to pay higher insurance rates. What are these fossil fuels investments actually costing Maine citizens?”

Yarmouth student Anna Siegel — who works with Maine Youth Action, Maine Youth for Climate Justice and Sierra Club Maine on grassroots organizing, climate finance and environmental policy — also spoke to the crowd gathered in Augusta.

“What MainePERS is being asked to do has been successfully done by other institutions, including academic, religious and business systems,” Siegel said. “Since L.D. 99 passed, the University of Maine system has pledged to divest due pressure from student activists. … While the $1.3 billion that Maine will now be divesting from fossil fuels may seem like a drop in the bucket, there is a ripple effect. … If fossil fuel divestment in Maine is forgotten, the fossil fuel industry will have won, and our financial institutions will continue to fund the climate crisis.”

For more information on divestment efforts and L.D. 99, visit divestmaine.org.