State pension invested in guns

Connecticut has invested more than $16 million in gun companies, including one that produces an AR-15-style assault weapon like the rifle used to slaughter students in the recent Florida attack — and like the Bushmaster used at Sandy Hook.

Those state investments represents just 0.05 percent of the overall $30 billion Connecticut Retirement Plans and Trust Fund, which funds pensions for teachers and other state workers. But they are raising questions in a state that banned assault weapons and adopted strict gun-control measures following Sandy Hook in 2012.

“I think people will be surprised that we are still invested in these companies, given the fact that we have been a leader in gun-safety legislation,” said state Sen. Gayle Slossberg, D-Milford.

Connecticut’s investments came to light after Slossberg wrote a letter to state Treasurer Denise Nappier asking if the state pension fund was invested in gun manufacturers. The letter was sent in the aftermath of the Parkland, Fla., shooting that left 17 dead at Marjory Stoneman Douglas High School.

“I expected she would have divested,” Slossberg said, referring to selling investments in gun companies. “That’s clearly not what happened.”

Nappier listed pension investments in five companies that make guns or ammunition, with a total investment of $16.5 million. The state invested $4.04 million in Vista Outdoor, which makes an AR-15style assault weapon under the name of Savage Arms, based in Westfield, Mass.

A subsidiary of another company, the Olin Corporation, makes the Winchester brand rifle, ammunition and other products. The pension fund has invested $915,255 in the company.

Other companies Connecticut invested in include CIE Financiere Richemont SA; a $7.19 million investment; Daicel Corp., $1.65 million; and Orbital ATK Inc., $784,437.

Nappier said the state, as an investor, can use its sway with the a gun company’s board of directors to push the firm to responsibly manufacture, market and sell their products. That tactic was used for years to fight apartheid in South Africa.

“So many of us in Connecticut and beyond have seen firsthand the destruction wrought by assault rifles and the wave of gun violence that has plagued our schools and communities across the nation,” Nappier said in a statement.

But Nappier stopped short of saying she would divest the pension fund from gun companies. Instead, she offered a vague commitment to pull the money.

“Should the proliferation of gun violence persist, and further compromise the safety of our young people, our communities and our long-term shareholder value, following a period of stepped up shareholder activism, I will proceed to divest or not make further investments in gun companies as the most prudent course of action,” Nappier said.

Other states are debating gun company investments in the wake of the Florida shooting. New Jersey lawmakers are moving to sell their stocks, and the head of teachers association in Florida is demanding the state divest from its gun stocks.

At least 12 states have pension fund investments in gun companies, in part because they provide a good return, according to a variety of reports. Now, most of those states are discussing whether to sell their gun stocks.

Florida’s pension system earned $179,000 from gun stocks, including the company that made the AR-15.

Connecticut Republican Party Chairman J.R. Romano said those pushing to divest from gun companies have an agenda. He said opioid medication has killed far more people than assault weapons, but no one is demanding anyone sell stock in companies that make the pharmaceutical.

“No one is demanding we divest from Pfizer,” Romano said. “It’s about ideology. In my opinion, it’s political grandstanding.”

“They take a tragedy and fight for something they have wanted for 20 years,” he said, referring to banning assault weapons and other gun controls.

But Kelly Donnelly, a spokeswoman for Gov. Dannel P. Malloy, said the governor is not surprised calls are growing to divest pension funds from gun companies.

“Gov. Malloy long ago predicted that this would happen, that people would call for placing investments elsewhere,” Donnelly said. “With that said, this is ultimately state Treasurer Nappier’s decision to make.”

Backlash is appearing at the retail level. Mountain Equipment Co-op, a Canadian sporting good store, last week announced it would no longer carry guns made by Vista Outdoor.

Dick’s Sporting Goods said it would stop selling AR-15 and semiautomatic weapons and Walmart said it would raise the minimum age to buy guns to 21.

“When even major retailers that sell guns say it’s time to ban assault-style weapons, members of Congress should listen up, and take action,” Malloy said.

Sheila Cohen, president of the Connecticut Education Association, said the state should not be investing in gun manufacturers, especially considering Sandy Hook, a tragedy that left 20 young school children and six adults dead.

“It makes sense for the state to invest its pension funds in companies that do not contribute to violence in our communities and do not manufacture semiautomatic rifles or highcapacity magazines for pistols or rifles,” Cohen said.

Slossberg said she plans to talk with Nappier about the investments, adding she may try to introduce legislation to force the state to divest even though the deadline to introduce bills has passed.

“Our state has enacted the strongest gun-safety legislation in the country,” Slossberg said. “We should not now or in the future be investing public dollars in the manufacture of guns that are being sold to children to kill children.”