The Illinois State Universities Retirement System, Champaign, rejected a request by state Comptroller Daniel W. Hynes to divest all stocks and other securities in companies incorporated offshore "to avoid domestic tax liability." Mr. Hynes also said he is "proposing legislation to make corporations that have expatriated … ineligible for state contracts."
"It's not our job to enforce state tax policy," J. Fred Giertz, chair of the investment committee, said at a committee meeting of the $11.47 billion fund today.
"It doesn't appear to me something we should spend resources on in regard to our ultimate fiduciary responsibility," added committee member Jane H. Henneman.
Mr. Hynes also wrote to the presidents of the boards of the $28 billion Illinois State Teachers' Retirement System, Springfield, and the $8.3 billion Illinois State Board of Investment, Chicago.