TEACHERS UNION WANTS SEC PROBE.

Call follows donations to charter school backers

Teachers’ unions are calling for an investigation for the Yes on 2 campaign by the federal Securities and Exchange Commission and state officials, claiming a possible pay-to-play scheme.

“This is about the integrity of our pension investments and the integrity of our elections,” Massachusetts Teachers Association President Barbara Madeloni said in a statement. “We need an investigation to find out whether these firms are wielding inappropriate influence in state government.”

A report published by the International Business Times found that eight financial firm managers donated more than $778,000 to the Yes on 2 campaign. The financial groups manage more than $1.275 billion in state money, the report found.

The teachers’ unions note that the while firm executives aren’t allowed to contribute to governors who can influence state pension business, they can invest in groups backing policy initiatives, like Question 2, that governors support. Baker supports Question 2.

“Retirees need to know that investment decisions are being made based on their financial security, not to curry favor with Gov. Baker and his pension board appointees,” said Tom Gosnell, president of the American Federation of Teachers Massachusetts.

Baker’s office declined to comment, referring to Yes on 2 backers Great Schools Massachusetts. Great Schools said in a statement: “We are grateful to anyone willing to stand up to the special interests who are desperately fighting to preserve the status quo and do what is best for adults — not kids. ... We are very proud of all the support our campaign has received in this important fight.”

The state’s pension reserves investment trust is a pooled fund that invests in teachers and state employee retirement systems, as well as municipal and county employees.

Question 2, which asks voters to lift the cap on charter schools to allow 12 new schools or expansions per year is one of the most expensive ballot fights in state history with both sides pouring in at least $30 million.

The No on 2 campaign has been largely funded by the national teachers unions.

Yes on 2 has been backed by out-of-state billionaires, including former New York Mayor Michael Bloomberg, John Douglas Arnold, a Houston-based billionaire who runs the Centaurus Advisors hedge fund, and Walmart heirs Jim and Alice Walton.