AFL-CIO Explores Pension Investment

 James KeenanThe AFL-CIO Executive Council, under the leadership of President George Meany, appoints a subcommittee on pension investment to consider establishing an investment advisory body. James Keenan, Secretary of the International Brotherhood of Electrical Workers and a subcommittee member, helps win labor support for the idea of investing pension funds in federally insured mortgages that generate union jobs and expand the nation's housing stock. At this time, the AFL-CIO has almost 9% of its general pension fund invested in Federal Housing Authority (FHA) mortgages.

Helping Unions Invest

A new Department of Investment is created at the AFL-CIO to advise affiliated unions that wish to invest reserves from pension and welfare funds into government-guaranteed housing mortgages. This program espouses the principle that investments should be made in mortgages insured or guaranteed by the federal government or one of its agencies, and they should support union job creation.