Oklahoma Judge Issues Permanent Injunction Against Oklahoma Treasurer

Last week, Oklahoma Judge Sheila Stinson permanently stopped the enforcement of the Oklahoma Energy Discrimination Elimination Act (EDEA). You can read coverage on it from OK Energy Today here.

This is great news for Oklahoma retirees. It stops – pending an appeal – a law that could have cost the Oklahoma Public Employee Retirement System (OPERS) millions of dollars. And it has already cost the state’s taxpayers $185 million, according to a study by Oklahoma Rural Association.

Earlier this year, Judge Stinson put a temporary restraining order (TRO) on the law. When she issued her permanent injunction last week, she said the same rationale she applied earlier to the TRO carried over to her latest ruling. She said then: “The Court finds a substantial likelihood that this stated purpose of countering a “political agenda” is contrary to the retirement system’s constitutionally stated purpose. An attempt by the Treasurer or the Board to divest or transfer funds for any purpose other than the benefit of the members or beneficiaries is contrary to and a violation of Okla. Const. Art. 23, §12.”

The law sought to create a list of financial companies that were allegedly boycotting energy companies, essentially blocking state and local governments from doing business with these banks and investment advisors. Any company put on the list by state Treasurer Todd Russ would be blacklisted from public-sector engagements. This action would have allowed something other than finance into the mix with no regard as to whether money is lost on the deal. The focus was simply on a perceived political win.

That blacklist would have applied to state pensions, but also public finance projects where state and local governments borrow money for infrastructure and other capital projects. Limiting what businesses can engage in the state, resulting in less competition and effectively raised the price of those projects until the judge made her first ruling.

The President of APSR, Tim Hill, on the judge’s decision said: “This is a victory for the state’s current and future retirees, and its taxpayers. Judge Stinson’s decision helps keep politics out of public finance just as the Oklahoma constitution dictates. We are gratified today’s rulings stop Oklahoma’s unconstitutional effort to include non-fiduciary issues when deciding how to invest public pension funds.” 

These anti-ESG blacklist laws are expensive for taxpayers, for current retirees and for all future retirees; Luckily Oklahoma’s legal system stepped in to prevent the state from following other states down that expensive rabbit hole.

Public pensions are a vital benefit for our public employees’– first responders, teachers, nurses, and others – many of whom are not eligible for Social Security and rely solely on their pension for retirement savings. Nobody benefits when putting anything ahead of safe and secure investments – which is what the Oklahoma blacklist would have done.

Instead of wasting time and energy on political fights, lawmakers should focus on taking care of the constituents and honoring the oath they’ve taken to act in the best interest of Oklahomans.

This permanent injunction of the EDEA is the right step to ensure politics remains out pensions and public finance.