Maryland Pension Fund Increases Israeli Bond Holdings to $74 Million Amid Divestment Calls

Maryland’s state pension fund has increased its investments in Israeli bonds to $74 million in 2024, despite growing calls for divestment linked to the conflict in Gaza and recent credit downgrades of Israeli debt.

The Maryland State Retirement and Pension System (MSRPS) quietly purchased approximately $10 million in Israel Bonds between July and December 2024, raising total holdings to $74 million, according to information obtained through Public Information Act requests. This move comes as other international funds are divesting from Israeli assets due to concerns over the humanitarian crisis and potential financial risks. The increased investment is particularly notable as it runs counter to a global trend of reassessing financial ties to Israel.

Educators and state workers are voicing concerns about the ethical implications of their retirement funds being tied to the conflict. Grace Smith, a middle school teacher in Baltimore County, stated, “It’s a hellscape to have your ability to retire depend on continuing the U.S. war machine. I don’t know why it’s acceptable for a pension fund to grow through investing in genocide. I just know it doesn’t have to be that way.” Activists with the campaign “Maryland Break the Bonds,” led by chapters of Jewish Voice for Peace, are advocating for the fund to “Invest Maryland money in Maryland’s future, not in genocide.”

Officials at MSRPS maintain that investment decisions are guided by state law and a fiduciary duty to maximize returns for retirees. Acting Chief Investment Officer Robert Burd said the fund’s investments are managed “for the exclusive benefit of our members and retirees” and comply with legal requirements. Comptroller Brooke Lierman’s office indicated that any policy changes would require legislative action. Similar divestment efforts, such as those seen in Somerville, Massachusetts, demonstrate a growing movement to leverage economic pressure for political change.

Activists are now focusing on drafting legislation to compel the pension fund to reconsider its investments, while officials say they will continue to follow existing state law.