RALEIGH — North Carolina has become the third state to confirm that it has divested its state pension fund from Israel Bonds, after Minnesota and Michigan announced their decisions, and the first state to confirm selling its Israeli government bonds following public pressure. 

The Break the Bonds NC Coalition, along with thousands of North Carolinians, has been pushing for the immediate divestment of $6.4 million of Israeli government bonds due to their below-market rate performance. 

Following a public records request on Nov. 21, the Office of the Treasurer confirmed by email that the state had sold the Israeli government bonds held in the Teachers and State Employees Retirement Systems pension fund.

"As a state employee, I'm so relieved that my pension fund will no longer be funding a genocide," said Dr. Noa Nessim of Jewish Voice for Peace - Triangle NC, who lives in Durham. “And, as a Jewish North Carolinian, I am so proud to be part of a multifaith movement of people across the state who have proven that we will never stop fighting for Palestinian lives.” 

Divestment of North Carolina pension funds follows similar moves by local and state leaders throughout the United States, who have decided to part ways with these risky, poor-performing bonds. This trend aligns with a downgrading of investments in Israel, with both Moody’s and S&P rating Israeli bonds “three steps above junk,” according to Bloomberg. 

On Oct. 29, a group that included state pension holders and members of a multifaith coalition gathered in Raleigh to deliver a petition signed by nearly 5,000 North Carolinians demanding that the Israeli bonds be sold and for the proceeds to be reinvested in North Carolina. The group highlighted that the pension fund has been underperforming for years and has a $16 billion deficit.

They voiced their ethical and moral considerations about the Israeli government’s apartheid system and genocidal actions towards Palestinians in Gaza.

“This is not a political issue; this is a common-sense issue that matters to everyone,” said Sekia Royall of UE Local 150, the North Carolina Public Service Workers Union, who lives in Goldsboro. “North Carolina’s residents and workers know that instead of being invested in suffering and death, our pension fund can and should be invested in stable, financially robust, and ethical funds that support life, helping our communities to thrive and to meet the challenges of tomorrow.” 

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