The measure prohibits the state’s massive retirement funds from investing in companies that do business with Iran. In a statement, Governor Schwarzenegger said he looked forward to signing the legislation to take a “powerful stand against terrorism.” The bill sailed unanimously through the legislature. It’s similar to one the Governor signed last year to divest from the Sudan.
CALPERS and CALSTRS – the retirement funds for state employees and teachers - are the largest pension funds in the nation. Under the bill, they’d have to divest from companies involved in Iran’s nuclear or defense industries. The pension funds have opposed the move – saying they already have their own policies in place to govern investments in risky areas.