PHOENIX The $28.3 billion Arizona State Retirement System and the $7 billion Arizona Public Safety Personnel Retirement System, both of Phoenix, will have to divest holdings in scrutinized companies that do business in Iran under a law signed by Arizona Gov. Janet Napolitano, confirmed Jeanine L'Ecuyer, Ms. Napolitano's spokeswoman.
The law gives the two funds and the state treasurer's office 180 days to identify companies with ties to Iran. A summary of the law on the Arizona Legislature's website says the state retirement system invests in 89 firms that do business in Iran, while the public safety plan invests in four such companies.
Officials at the funds expect any impact from the law to be minor. Because of the divestment cessation/ reinvestment provision, any impact to (Arizona State Retirement) is probably mitigated, according to the fund's website, which states that funds can cease divestment from or reinvest in scrutinized companies if the value of the impacted account is 0.5% less than without divestment. Calls to ASRS Director Paul Matson were not returned by press time. James Hacking, Arizona Public Safety's administrator, said the new law would have a minimal impact on the fund.
Arizona joins 12 other states with Iran divestment laws, according to the state Legislature; Arizona has a Sudan divestment law.