Key Takeaways
- • Philadelphia City Council passed Resolution #250408, sponsored by Councilwoman Cindy Bass, directing the City Pension Board to review and begin the process of divesting from businesses based in or operating in El Salvador.
- • The resolution cites the continued detention of Kilmar Armando Abrego Garcia, a Maryland resident mistakenly deported to El Salvador, despite a unanimous U.S. Supreme Court ruling ordering his return.
- • The measure directs the Philadelphia Pension Fund to review all El Salvador-linked investments and plan an exit strategy, and urges consideration of broader risks in countries showing instability or disregard for international legal frameworks.
- • Bass characterized El Salvador's response as an alarming breach of international legal norms, citing both the refusal to honor the Supreme Court decision and obstruction of Congressional access to detention facilities.
Summary
Philadelphia City Council passed Resolution #250408, sponsored by Councilwoman Cindy Bass, calling on the City's Pension Board to review and begin the process of divesting from businesses based in or operating in El Salvador. According to the city council's announcement, dated May 1, 2025, the measure was adopted in response to escalating concerns about El Salvador's commitment to the rule of law and the potential impact on Philadelphia's public pension investments.
The resolution, titled "A Resolution directing the City Pension Funds to review and act on investments in El Salvador, ensuring transparency, accountability and ensuring fiscal responsibility in light of recent developments," points to the continued detention of Kilmar Armando Abrego Garcia, a Maryland resident who was mistakenly deported and remains imprisoned in El Salvador. The resolution notes that El Salvador's President Nayib Bukele dismissed a unanimous U.S. Supreme Court ruling ordering Abrego Garcia's return, calling compliance "preposterous."
Bass said the refusal to honor the Supreme Court decision and the obstruction of Congressional access to detention facilities in El Salvador are "alarming breaches of international legal norms," adding that fiduciaries of public employee retirement funds "must not ignore these red flags." The resolution directs the Philadelphia Pension Fund to review all investments tied to El Salvador and begin planning an appropriate exit strategy to safeguard pension assets. It also urges the fund to consider broader implications for investments in countries that demonstrate instability or disregard for international legal frameworks.
The announcement does not disclose the size of Philadelphia's current El Salvador exposure, the specific companies or securities affected, or a timeline for the Pension Board's review. The resolution is a directive to review and act and does not itself mandate a sale.
The resolution, titled "A Resolution directing the City Pension Funds to review and act on investments in El Salvador, ensuring transparency, accountability and ensuring fiscal responsibility in light of recent developments," points to the continued detention of Kilmar Armando Abrego Garcia, a Maryland resident who was mistakenly deported and remains imprisoned in El Salvador. The resolution notes that El Salvador's President Nayib Bukele dismissed a unanimous U.S. Supreme Court ruling ordering Abrego Garcia's return, calling compliance "preposterous."
Bass said the refusal to honor the Supreme Court decision and the obstruction of Congressional access to detention facilities in El Salvador are "alarming breaches of international legal norms," adding that fiduciaries of public employee retirement funds "must not ignore these red flags." The resolution directs the Philadelphia Pension Fund to review all investments tied to El Salvador and begin planning an appropriate exit strategy to safeguard pension assets. It also urges the fund to consider broader implications for investments in countries that demonstrate instability or disregard for international legal frameworks.
The announcement does not disclose the size of Philadelphia's current El Salvador exposure, the specific companies or securities affected, or a timeline for the Pension Board's review. The resolution is a directive to review and act and does not itself mandate a sale.
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