6 10, 2020

Controller Yee: ‘More work’ ahead for CalPERS board

2020-10-06T09:46:02-07:00October 6th, 2020|Categories: Corporate Governance|Tags: , , |

Even though CalPERS is taking steps toward fixing its governance problem, officials at the $411.5 billion pension plan say the road ahead is long. California Controller Betty T. Yee, who sits on the boards of both California Public Employees' Retirement System, Sacramento, and the second-largest U.S. public pension plan, the $262.5 billion California State Teachers' Retirement System, West Sacramento, is helping drive the changes. Her duties on both boards give Ms. Yee an unobstructed view of the culture and [...]

25 11, 2019

CalPERS diversity strategy using strength in numbers

2019-11-25T08:33:43-08:00November 25th, 2019|Categories: Retirement|Tags: , , |

CalPERS has a well-developed plan to encourage diversity on public company boards on its own and as part of industry organizations, but when it comes to private companies, officials at the largest pension plan in the country are choosing to work as part of an industry group rather than go it alone. Asset owners haven't tackled the issue of diversity at private companies until relatively recently. But as the number of private companies choosing to stay private longer increases, [...]

3 11, 2017

Who Pays? The CalPERS Pension Buck Identifies the Income Sources of Public Employee Pensions

2017-11-03T22:16:51-07:00November 3rd, 2017|Categories: Defined Benefit Plans|Tags: |

Some people believe that taxpayers fund the total cost of public pensions. This is untrue. The largest contribution comes from CalPERS investment dollars, with additional funding from employee and employer contributions. Workers currently contribute up to 15.25 percent of their paychecks to help fund their own pensions. The CalPERS Pension Buck illustrates the sources of income that fund public employee pensions. Based on data over the past 20 years ending June 30, 2017, for every dollar CalPERS pays in [...]

19 12, 2016

Criticism is fierce over an effort to cancel California pension fund investments in tobacco

2016-12-19T17:48:11-08:00December 19th, 2016|Categories: Pension Funding|Tags: |

A pair of powerful California elected officials expressed outrage Tuesday at a recommendation that the state’s largest public employee pension fund cancel its ban on investing in tobacco companies. A staff report from the California Public Employees Retirement System calls for the agency’s directors to abandon a 16-year effort to move away from tobacco-related securities. The report estimates there are about $547 million worth of investments related to tobacco in the CalPERS portfolio. […]

23 08, 2016

California court opens door to changing public employee pensions

2016-08-23T21:41:17-07:00August 23rd, 2016|Categories: Pension Funding|Tags: , |

California’s perpetual debate over public employee pensions has always revolved about what’s called the “California rule” – a series of court decisions that seemingly prohibit any changes in pension benefits once they are granted. The debate has intensified in recent years as the California Public Employee Retirement System and other state and local pension systems grapple with multibillion-dollar “unfunded liabilities” for pension benefits and increase mandatory payments from governments to reduce them. […]

18 08, 2016

CalPERS adopts first-ever ESG policy plan

2016-08-18T21:46:24-07:00August 18th, 2016|Categories: ESG|Tags: |

California Public Employees’ Retirement System’s board of administration adopted a new environmental, social and governance five-year strategic plan, according to the pension fund. The new plan names six strategic initiatives to support the American public pension fund’s efforts in sustainable investing. One initiative is specifically centered on private equity, focusing on private equity fee and profit-sharing transparency through the industry adoption of the Institutional Limited Partners Association’s fee-reporting template released at the beginning of the year. […]

24 11, 2015

Lake Forest to pay off employee pension costs

2015-11-24T00:27:43-08:00November 24th, 2015|Categories: Pension Reform|Tags: , |

Fully funding CalPERS will save the city $5.9 million over a 30-year period. The City Council has voted to pay off its unfunded employee pension liability, saving the city $5.9 million in interest over a 30-year period.”It’s a nearly $6 million savings over the next 30 years,” said Keith Neves, the city’s director of finance. “It would be like paying off your mortgage early.” The council authorized a payment of $3.7 million to the California Public Employees Retirement System, which [...]

29 09, 2015

How Public Pensions Are Getting Smart About Infrastructure

2015-09-29T17:54:32-07:00September 29th, 2015|Categories: Defined Benefit Plans|Tags: , , |

By cutting out the middlemen, our pension funds are harnessing the power of their capital. While American politicians talk about changing public policy to increase investment in U.S. infrastructure, America’s public pension funds are investing their money in infrastructure overseas. The largest U.S. public pension fund, the California Public Employees’ Retirement System (CalPERS), recently announced a $1 billion deal with Queensland Investment Corp. (QIC), an Australian pension fund, to invest in Australian and Asian Pacific infrastructure. […]

14 08, 2015

Calpers vs. Voters

2015-08-14T20:05:19-07:00August 14th, 2015|Categories: Defined Benefit Plans|Tags: |

Opportunities for government reform are about as rare and needed in California as rain. So it’s a pity that public unions are trying to block a promising ballot initiative that could end defined-benefit pensions and save taxpayers billions of dollars. Earlier this summer San Jose’s former Democratic mayor Chuck Reed proposed a referendum for the November 2016 ballot that would require governments to obtain voter approval to continue defined-benefit pensions for new workers after 2019. Voter approval would also be necessary [...]

7 08, 2015

CalPERS CEO says pension proposal full of problems

2015-08-07T17:17:30-07:00August 7th, 2015|Categories: Pension Reform|Tags: , , , |

A proposed ballot measure that would make future pension benefits subject to voter approval is fraught with legal and administrative peril, according to a letter from CalPERS’ chief executive officer, eliciting a response from one of the measure’s proponents that the assessment is a “lie.” The measure filed by former San Diego councilman Carl DeMaio and former San Jose Mayor Chuck Reed would constitutionally require voter approval for future retirement-benefit increases. Employees hired on Jan. 2019 and later would [...]

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