Retirement board hires companies to screen for terrorism

Kelly Wiese, Associated Press, Kansas City:

A state retirement system decided Monday to hire two companies that provide information about businesses with potential links to terrorism.

The Missouri State Employees' Retirement System board unanimously agreed to hire Conflict Securities Advisory Group and Regulatory Data Corp. International, for about $25,000 a year in all, system director Gary Findlay said. Between them, the contractors provide lists of companies doing business in countries sanctioned by the U.S. government, such as Iran or North Korea, or companies that reportedly have links to or have sponsored terrorism.

The board this summer had agreed to implement a terrorism screening process for its investments, and Monday's action did that. READ MORE

State Treasurer Sarah Steelman had pushed for the change, saying the state has no business investing in companies that support terrorist activities.

"It's a step in the right direction, it's very pro-active," she said after the board's vote. "It's a much better policy, much better effort."

Steelman complained earlier this year that the system wasn't doing enough to ensure the state retirement plan avoided improper investments.

With the new information, retirement system staff can compare the lists with the system's portfolio. Where there are matches, staff will further investigate, and if the issue is clear, they can decide to get rid of the state's investment, Findlay said. If there is conflicting evidence, the issue will be brought to the board to decide.

Findlay said it's important to remember that just because a company is active in a particular country doesn't mean it's working against U.S. interests.

The retirement system invests about $6 billion, roughly 20 percent of which is in foreign investments.

Sounds like a great idea.