Earlier this week, South Carolina governor Henry McMaster signed into law H 3690, which requires state pension fund officials only consider financial factors when making investment decisions. On its face, this seems perfectly reasonable, and what we should expect from those managing the retirement funds for much of the state’s workforce. 

However, in both its language and its intent, the bill is the latest example of a dangerous trend toward government overreach that politicizes investment funds at the risk of pensioners and taxpayers by preventing fund managers from considering all relevant financial factors in their decision-making process.