The California Public Employees' Retirement System ( CalPERS ) is an agency in the California executive branch that "manages pension and health benefits for more than 1.5 million California public employees, retirees, and their families". In fiscal year 2020–21, CalPERS paid over $ 27.4 billion in retirement benefits, and over $ 9.74 billion in health benefits.
96-545: CalPERS manages the largest public pension fund in the United States, with more than $ 469 billion in assets under management as of June 30, 2021. CalPERS is known for its shareholder activism ; stocks placed on its "Focus List" may perform better than other stocks, which has given rise to the term "CalPERS effect". Outside the U.S., CalPERS has been called "a recognized global leader in the investment industry", and "one of America's most powerful shareholder bodies". As of 2018,
192-444: A California Democratic Party spokesman also was quoted as saying - "They want to put it off onto some massive conspiracy theory... The governor's office is trying to play up the nefarious angle to deflect attention from their own incompetence — accidentally posting the recording on its own Web site. And from the recordings themselves." In early 2007, the CHP issued a report clearing
288-442: A Coro Foundation Fellow. Angelides and his wife Julie have three daughters, Megan, Christina, and Arianna. His eldest daughter, Megan Garcia-Angelides, was the campus coordinator for his 2006 campaign. Angelides' interest in politics was ignited in 1971, during his college freshman year, when he met anti-war activist Allard Lowenstein . In 1973, while in college, Angelides unsuccessfully ran for Sacramento City Council against
384-541: A "Focus List". The list was also referred to as a "name and shame" list. Beginning in 2010, CalPERS stopped publicly naming companies on the list and instead began dealing with such companies privately. In 2012, CalPERS initiated a program to monetize the Focus List. Each year, after the Board approves staff recommendations for Focus List companies, CalPERS increases investments in those companies. New Focus List companies are added to
480-772: A "document of collegiality" in October 2001). Other controversies have affected the Board, such as: CalPERS employees perform under the direction of the chief executive officer (CEO) of CalPERS. Past CEOs have been: Earl W. Chapman (1932–1956); Edward K. Coombs (acting, 1956); William E. Payne (1956–1974); Carl J. Blechinger (1975–1983); Sidney C. McCausland (1984–1986); Kenneth G. Thomason (acting or interim, 1987); Dale M. Hanson (1987–1994); Richard H. Koppes (interim, 1994); James E. Burton (1994–2002); Robert D. Walton (interim, 2002); Fred R. Buenrostro, Jr. (2002–2008); Kenneth W. Marzion (interim, 2008–2009); Anne Stausboll (2009–June 2016); and Marcie Frost (October 2016 – Present). Reporting to
576-588: A 3,000% increase from before the 1999 benefits expansion. Promised benefits exceeded funds available by $ 241.3 billion. Unfunded retiree healthcare costs add an additional $ 125 billion to California's public retirement debt. During Gavin Newsom 's tenure, activists have increasingly called for CalPERS to more broadly divest from fossil fuels . On February 17, 2022, State Senator Lena Gonzalez introduced legislation that would require CalPERS and CalSTRS divest. The CalPERS board has opposed proposals to divest. The bill passed
672-541: A Democrat and won, and was re-elected in 2002. From 1999 to 2007, Angelides served as California State Treasurer . As Treasurer, he was an ex-officio member of the boards of the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS) , which are the nation's first and third largest public pension funds. In 1999 Angelides launched
768-542: A close relationship with SERS that continues to this day. In 1939, the state Legislature passed a bill that allowed local public agencies (such as cities, counties, and school districts) to participate in SERS. Initially, SERS could invest only in bonds, but in 1953 a new state law allowed SERS to invest in real estate. SERS then built a 670,000-square-foot (62,000 m), 16-story building in Sacramento which opened in 1965; part of
864-482: A governing body, accountable to the pension plan members and beneficiaries. This body is ultimately responsible for ensuring adherence to the terms of the arrangement and the protection of the best interest of plan members and beneficiaries. The governing body should also meet minimum suitability standards to ensure a high level of integrity, competence, experience, and professionalism. Additionally, there should be adequate internal controls in place to ensure compliance with
960-477: A landslide. Due to lack of name recognition , Angelides was considered an unknown by comparison. His campaign did not air a single biographical ad until very late into the campaign. In the Democratic primary, Steve Westly spent $ 43 million ($ 35 million was of Westly's own fortune), compared to Angelides' $ 28.1 million (though an additional $ 10.4 million though independent campaigns on Angelides' behalf helped narrow
1056-466: A letter saying "All of the environmental organizations who do endorsements believe Phil has the vision to be the greenest governor California has ever had." On June 6, 2006, Angelides won the Democratic primary over Westly with 48 percent of the vote over his opponent's 43 percent. On August 16, Angelides announced his plans to cut taxes by $ 1.4 billion for California's middle class and small businesses. An unauthorized MySpace web page for Angelides
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#17328555033051152-633: A member of the Senate Committee on Commerce, Science and Transportation , urging her to support net neutrality . Angelides also endorsed the Clean Money Initiative (Prop. 89), which would provide public financing to candidates who can obtain at least 750 $ 5 contributions from voters and who have participated in at least one primary and two general election debates. It would also place new restrictions on contributions and expenditures by lobbyists and corporations. Angelides presented himself as
1248-450: A more progressive and liberal candidate, and accused Westly of working too closely with Governor Arnold Schwarzenegger . Westly accused Angelides of being an anti-environment real estate developer. Westly's ads in that matter were later criticized by the executive directors of Vote the Coast, Sierra Club , California League of Conservation Voters , and California Coastal Protection Network in
1344-824: A number of subsequent papers, including: CalPERS commissioned three studies that were released in 2007-2008 about the economic impacts of the following: Key findings of the CalPERS Economic Impacts in California Report for the fiscal year ending June 30, 2012 included: CalPERS touted the studies as demonstrating the value of the agency with news releases such as "CalPERS and CalSTRS Pensions Power Up State and Local Economies". The studies and their use by CalPERS were criticized as follows: Among other "offerings to ensure [its] workers are happy as well as healthy," CalPERS has an onsite Montessori method child care facility, conducts employee surveys every two years, offers
1440-438: A percentage of their average salary during their working years. For instance, consider a scenario where a pension scheme offers a payment equivalent to 1% of an individual's average salary over the last five years of their employment for each year they served with the employer. Thus, if an employee worked for 35 years at the company and had an average final salary of $ 60,000, they would be entitled to an annual pension of $ 21,000. It
1536-400: A popular incumbent. From 1975 to 1983, Angelides worked for California's Housing and Community Development agency. During that time, he again ran unsuccessfully for city council in 1977. Angelides was an early supporter and fundraiser of the eventual 1988 Democratic Presidential Nominee, Michael Dukakis , and maintains a strong friendship to the present. Dukakis has referred to Phil as "one of
1632-568: A shape reminiscent of a tree which is made of steel covered with glass. The project was awarded a Gold Leadership in Energy and Environmental Design (LEED) rating. In 2012, Governor Jerry Brown signed legislation that reduced benefits for all new state employees and sought to combat pension spiking . Legislators rejected Governor Brown's proposals to include a 401(k) type defined contribution plan and to require CalPERS Board members to be independent, not themselves pensioners. Governor Brown promoted
1728-482: A single retirement regime that will offer equal actuarial rights and obligations. OYAK (Ordu Yardımlaşma Kurumu/Armed Forces Pension Fund) provides its members with "supplementary retirement benefits" apart from the official retirement fund, T.C.Emekli Sandığı/SSK, to which they are primarily affiliated. In addition to the retirement benefit, OYAK pays "disability benefits" to the members on duty when they become partially or fully disabled as well as "death benefits" to
1824-484: A spokeswoman for the Schwarzenegger campaign wanted Angelides to "denounce the unethical actions taken on his behalf", stating that he was trying to personally smear Schwarzenegger. In response to the claims from Schwarzenegger's camp, Angelides campaign manager Cathy Calfo dismissed the claims as being politically motivated and "completely false." In regards to the recording she stated: "What I have been told is, there
1920-420: A time, Angelides used California Democratic Party political operative Bob Mulholland . , and Political media consultants Sidney Galanty and Mark Galanty. On July 7, 2006, Angelides expressed his support for gay rights, and pledged to legalize same-sex marriage if elected governor, stating "I would sign the marriage equality bill because I believe if we can get behind people to build a lasting relationship, that
2016-419: A training and wellness program, and administers a nationally known employee recognition program. The employee recognition program has several components: Two CalPERS employees received 2000 National Association for Employee Recognition (NAER) Recognition Champion Awards for the employee recognition program. In addition, CalPERS itself won a 2002 Best Practices award from NAER. The employee recognition program
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#17328555033052112-765: A year on an investment portfolio of 261 billion in October 2007 and down to 186 billion in October 2008. This is a 2.5% return on investment over the 11-year period. Income or loss from investments fluctuates from year to year; between 1998–99 and 2007–08, the highest income was $ 40.7 billion in 2006-07 and the greatest loss was $ 12.5 billion in 2007–08. As of October 2008, CalPERS had a total of $ 186.7 billion in assets invested as follows: $ 104.9 billion (56.2%) in equities, $ 41.0 billion (21.9%) in fixed income, $ 20.9 billion (11.2%) in real estate, $ 16.2 billion (8.7%) in cash equivalents, and $ 3.7 billion (2.0%) in inflation linked assets. In 2010 CalPERS revised its strategic asset allocation mix using its Asset Liability Management process. By
2208-486: A year. With the stock market decline in 2008, during the financial crisis of 2007–2008 , there were large investment income losses. There was a 12 billion dollar investment income loss in 2008 and 55 billion in 2009. The 124 billion dollars of income in the nine-year period 1999-2007 was reduced by half as a consequence of the combined losses of 67 billion in 2008 and 2009. This totals to 57 billion dollars of investment income during this 11-year period, or about 5.1 billion
2304-754: Is a compulsory 10 percent levy on the base salary of Turkey's 200,000 serving officers who, together with 25,000 current pensioners, make up OYAK's members. Some other Turkish private pension funds: In the United States, pension funds include schemes which result in a deferral of income by employees, even if retirement income provision is not the intent. The United States has $ 19.1 trillion in retirement and pension assets ($ 9.1 trillion in private funds, $ 10 trillion in public funds) as of 31 December 2016. The largest 200 pension funds accounted for $ 4.540 trillion as of 30 September 2009. Phil Angelides Phillip Nicholas Angelides ( / ˌ æ n dʒ ə ˈ l iː d ɪ s / AN -jə- LEE -dis ; born June 12, 1953)
2400-567: Is a good thing." Angelides also called for reducing tax breaks for corporations and individuals earning $ 500,000 or more per year, in a plan to earn revenue to increase funding for public K-12 education and higher education. The plan would halt and repeal increases made in the tuition fees of the University of California system, and the California Community College system. He stated his opposition to sending National Guard troops to
2496-502: Is also rising in popularity; these are long-term investments in non-public companies, aimed at achieving substantial profits through eventual sales when these companies reach maturity. Furthermore, real estate investment trusts (REITs) are becoming a frequent choice for pension funds due to their passive investment approach in the real estate sector. Direct investments in commercial properties like office buildings, warehouses, and industrial parks are also prevalent. Many governments around
2592-615: Is an American politician who served as the California State Treasurer from 1999 to 2007. A member of the Democratic Party , Angelides was the party's nominee for Governor of California in 2006. Angelides later served as the chair of the Financial Crisis Inquiry Commission , which was charged with investigating the causes of the 2007–2008 financial crisis and presenting a report on their findings to
2688-579: Is an important first step in ensuring that these reforms become the new market standard." Angelides, along with 10 other state treasurers and controllers, called on the SEC to approve a rule giving shareholders the right to nominate candidates for corporate boards of directors. A 2008 CalSTRS report stated that the two funds had collectively missed an estimated $ 1 billion in profits due to their decision, advocated by Angelides early during his tenure, to divest from tobacco companies. A 2007 CalPERS report estimated that
2784-688: Is budgeted in 2014-2015 for administrative functions in CalPERS, such as paying the salaries of 2,700 CalPERS employees. CalPERS current fund balance value as of June 2021 is 466.66 Billion. CalPERS derives its income from investments, from member contributions, and from employer contributions. Investment Income has fluctuated in the last 15 years, 1999–2013, with five years of losses and 10 years of gains. There were investment income gains of $ 17 billion in 1999, $ 16 billion in 2000 and $ 5 billion in 2003. The stock market declines in 2001 led to investment income losses of 12 billion in 2001 and 10 billion in 2002. Thus,
2880-579: Is important to point out that one cannot usually take early withdraws or loan from pension. Public sector pensions, like the California Public Employees’ Retirement System (CalPERS), often include cost-of-living escalator and can be more generous than private sector pensions. Private pension plans are regulated by federal laws such as the Employee Retirement Income Security Act (ERISA) and are insured by
2976-450: Is made of three pillars. One is the state pension (Pillar I – Mandatory), the second is a private mandatory pension where the state transfers a percentage of the contribution it collects for the public pension, and the third is an optional private pension (Pillar III – Voluntary). The Financial Supervisory Authority – Private Pension is responsible for the supervision and regulation of the private pension system. Social Security Institution
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3072-414: Is one that is regulated under public sector law while a private pension fund is regulated under private sector law. In certain countries, the distinction between public or government pension funds and private pension funds may be difficult to assess. In others, the distinction is made sharply in law, with very specific requirements for administration and investment. For example, local governmental bodies in
3168-874: The California League of Conservation Voters , after a head-to-head debate with Westly. He also received the endorsement of the liberal San Francisco Bay Guardian . A Field Poll held on June 2, 2006, had Westly leading Angelides by one percentage point, 35% to 34% with 26% undecided. Angelides was also endorsed by former vice president Al Gore , New York Attorney General Eliot Spitzer , Senators Barbara Boxer and Dianne Feinstein , Former Massachusetts Governor and 1988 Democratic Presidential nominee Michael Dukakis , United States Senator from Massachusetts and 2004 Democratic Presidential nominee John Kerry , Assembly Speaker Fabian Núñez , California Lieutenant Governor Cruz Bustamante , Mayor of Los Angeles Antonio Villaraigosa , Minority Leader Nancy Pelosi ,
3264-889: The ScholarShare college savings trust, described by the Los Angeles Times as one of "the nation's best," (a subsection of the scholarship portion of the ScholarShare program was discontinued due to lack of funds after only a year) and sponsored a $ 25 billion bond to relieve overcrowding and repair damaged schools. He was considered a leader in the corporate reform movement and advocated for investment in socially and environmentally conscious businesses and for businesses with increased standards of financial disclosure. For example, in April 2006 CalSTRS board members unanimously supported Angelides' motion to divest from Sudan to pressure an end to
3360-599: The United States Congress . Angelides was born in Sacramento, California , to Helen (née Papadopoulos) and Jerry Angelides, who were Greek immigrants . Growing up, Phil and his brother Kimon were encouraged by their father to learn about geography and the United States government. Their father would quiz them weekly on these topics. Angelides was educated at The Thacher School in Ojai, California and graduated from Harvard University in 1974, majoring in government as
3456-573: The dot-com bubble burst, and CalPERS did not grow, instead losing value in the stock market downturn of 2002 . In 2001–2002, CalPERS provided technical assistance for the Sarbanes-Oxley Act because it had sustained financial losses from the Enron and WorldCom bankruptcies. After the Great Recession , in 2009 CalPERS investments lost 24%, dropping $ 67 billion in value. Chairman Crist retired from
3552-404: The "Public Employees' Retirement System" (PERS). With the passage of a ballot proposition and a state law in 1966–1967, PERS was allowed to invest 25% of its portfolio in stocks; in 1984, Proposition 21 removed the 25% limitation. State Treasurer Jesse M. Unruh was a PERS Board member in the mid-1980s. He began PERS' emphasis on corporate governance ; in addition, he was instrumental in creating
3648-456: The 1970s, they held large amounts of financial assets and had evolved to be significant participants in financial markets. But in the 1980s and 1990s pension funds faced significant challenges. The stock market crash in 1987 and the recession in the early 1990s had a negative impact on pension funds. Furthermore, demographic shifts and rising life expectancies placed pressure on these funds to sustain retirement benefits over extended durations. In
3744-730: The 1980s, and especially in the early 1990s under the pioneering leadership of CEO Dale Hanson, CalPERS has used its influence as one of the largest shareholders in the world to change the way certain things are done in business. It is especially known for its shareholder activism concerning corporate governance , in which it has been described as the most influential pension fund and as "a leader among activist institutions". Among other examples of its shareholder activism, CalPERS has: CalPERS has received some criticism for its shareholder activism: Beginning in 1987, CalPERS placed certain companies, with which it had "concerns about stock and financial underperformance and corporate governance practices" on
3840-554: The 2006 gubernatorial race, Tsakopoulos has donated $ 3,750,000 to Mr. Angelides with his daughter, Eleni Tsakopoulous-Kounalakis donating $ 1,250,000. Angelides' development firm, River West, is most known for development in a floodplain called Laguna West , which is located outside Sacramento in Elk Grove, California . Laguna West was one of the first developments designed along the principles of New Urbanism . For this project, as well as his history of promoting New Urbanism, Angelides
3936-495: The Angelides campaign and Sullivan and Newman of any wrongdoing. The CHP concluded in its 38-page report that the digital audio files were placed on a website that was "accessed by backwards browsing ... which does not constitute a crime." The CHP recommended that no criminal charges be filed against anyone involved in "Tapegate". In the 2006 California gubernatorial election , incumbent governor Schwarzenegger defeated Angelides in
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4032-541: The CEO, the executive officers of CalPERS are: deputy executive officers for customer services and support, health benefit programs, policy and planning, operations and technology, and external affairs; a general counsel ; a chief actuary ; and a chief financial officer ; a chief information officer ; a chief risk officer ; and a chief investment officer . Under the executive officers, CalPERS employees work in 23 major branches, divisions, and offices. Approximately $ 415.1 million
4128-715: The California Labor Federation, the California Teachers' Association, the California Professional Firefighters, the California Sierra Club , California League of Conservation Voters, California NOW , Vote the Coast and Clean Water Action. Following his primary defeat on June 6, California State Controller Steve Westly endorsed the victorious Angelides as did Assemblyman Mark Leno and San Francisco Supervisor Fiona Ma . For
4224-565: The California-Mexico border and wanted to seek closer ties with the then-President of Mexico, Vicente Fox . This plan was criticized by his opponents as a tax hike. On May 22, 2006, Angelides announced his support for Vinod Khosla 's Clean Alternative Energy Initiative (prop. 87), which would assess oil company profits by $ 4 billion over the next ten years and use the proceeds to invest into research for alternative energy such as ethanol . On May 23, 2006, Angelides wrote Barbara Boxer ,
4320-640: The Council of Institutional Investors, an organization of pension funds and other institutions that opposed " greenmail and other corporate practices that benefited only management". In 1986, the headquarters building of PERS, now called "Lincoln Plaza North", was completed in Sacramento at a cost of $ 81 million. The building, which has 492,900 square feet (45,790 m), is known for its six-story-high atrium and landscaped terraces. In 1990, fund value reached $ 49.8 billion. In July 1991, Governor Pete Wilson addressed
4416-504: The IORP directive. This directive was recast and adopted in December 2016. It should promote long-term investment via occupational pension funds. Additionally, beneficiaries and members should now be better informed about their entitlements, address challenges faced by occupational pension funds operating across borders, and foster long-term investments in economic activities that boost growth, enhance
4512-1098: The Pension Benefit Guaranty Corporation (PBGC), which guarantees benefits if a pension plan fails. Pension funds can make investments into stocks, bond, real estate, and other assets. However, they have to be prudently managed compared to other types of funds due to their lower risk tolerance. For many years, they mainly invest into stable stocks and bond. In order to keep a high returns, with changing market conditions, they started to invest into other assets. Currently, many pension funds are moving away from managing active stock portfolios towards passive investment methods, focusing on index funds and exchange-traded funds (ETFs) that replicate market indices. Additionally, there's an increasing trend to diversify into alternative assets like commodities, high-yield bonds, hedge funds, and real estate. Newer investment tools for pension funds include asset-backed securities, such as those tied to student loans or credit card debt, which are used to boost returns. Investing to Private equity
4608-755: The United States are subject to laws passed by the states in which those localities exist, and these laws include provisions such as defining classes of permitted investments and a minimum municipal obligation . It is important to distinguish between pension plan, funds and firm. A pension plan is a benefits program set up and sustained by an employer or an employee group. They are managed by state or private firms as well as pension funds. Pension funds are financial mechanisms that provide retirement income for employees after their working life. They work by accumulating contributions from employers, and sometimes employees, which are then invested to grow over time. Upon retirement, employees receive benefits, typically calculated as
4704-444: The United States have also been the subject of governance problems too, as well as in other countries. The first concepts of providing retirement benefits have roots in ancient civilizations such as Rome and Greece. The pension system as we know it originated in the 19th century. In 1889, German Chancellor Otto von Bismarck started an early modern pension scheme. His goal was to help older German´s citizens. However, this idea came from
4800-420: The United States of America. In 1875 American Express Company introduced its own pension plan. During the early 20th century pension plans for public employees were growing, which resulted in creating a U.S. federal retirement plan, known as Social Security, in 1935. After World War II, pension funds became the primary tool for providing retirement benefits, which was supported by the growth of labour unions. By
4896-548: The United States pension plans are regulated mainly by The Employee Retirement Income Security Act 1974(ERISA). It provides framework for the regulation of employee pension and plans which are private pension funds offering. In 2006 was introduced The Pension Protection Act (PPA). This act come with new funding requirements for defined pension plans. As well as with new rules for calculating plan assets and liabilities. Pension funds in EU are regulated by Directive 2003/41/EC , also known as
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#17328555033054992-436: The agency has $ 360 billion in assets, and is underfunded by an estimated $ 150 billion, with current assets below 70% of necessary to provide for liabilities. In an effort to reduce this shortfall, at the end of 2016 the board lowered their expected annual rate of return on investments from 7.5% to 7.0%, increasing the costs California cities must pay toward their workers' pensions. For comparison: Discussion about providing for
5088-579: The benefits would require no increase in the State's contributions by projecting an average annual return of 8.25% over the next decade. When Board member Phil Angelides ’ aide questioned whether the stock market could grow that long, Board Chairman William Crist, a former union president, replied that they “could make all sorts of different assumptions and make predictions, but that’s really more than I think we can expect our staff to do.” CalPERS' chief actuary, objected, finding that it would be “fairly catastrophic” if
5184-561: The bi-partisan 10-member Financial Crisis Inquiry Commission . The Commission was created by a law passed by Congress and signed by President Obama in May 2009 and was charged with investigating the events that led to the monumental 2008 collapse of the financial markets. The Commission was mandated with reporting back to Congress by the end of 2010, "with a series of conclusions about what occurred, and recommendations as to how to avoid future market breakdowns." The Commission presented its report to
5280-605: The black blood in them and part of the Latino blood in them and together that makes it." It was a front-page story on the Los Angeles Times and was revealed by reporter Robert Salladay. Schwarzenegger then apologized for the remarks the next day, in a joint press conference with Garcia in Santa Monica . A few days later, the Schwarzenegger campaign claimed that it was the victim of a breach of security protocols, and Andrea Lynn Hoch, Schwarzenegger's legal affairs secretary stated that
5376-417: The board and it was later revealed he had accepted more than $ 800,000 from a firm to ensure hundreds of millions of investment from CalPERS. In November 2005, CalPERS expanded its headquarters with the 560,000-square-foot (52,000 m) "Lincoln Plaza East & West" buildings which cost $ 265 million. The architecture of the buildings, which received praise, includes an entry tower 90 feet (27 m) high in
5472-409: The building housed SERS employees, and part of the building was leased to other state agencies. The "first major new benefit for SERS members," health insurance, began in 1962 with the passage of a law that was later amended to become the "Public Employees' Medical and Hospital Care Act". Because by 1967 SERS was contracting with 585 local public agencies for retirement benefits, its name was changed to
5568-459: The color of briefing papers. After his defeat, Angelides stated that he would stay involved in California politics, not ruling out another run for governor or other statewide office. Angelides was interviewed in the documentary Meltdown on the financial crisis of 2007–2008 , where he blamed the crisis on banks lending out loans to people who clearly couldn't afford to pay them back. Angelides
5664-576: The companies engaged by CalPERS significantly outperformed the Russell 1000 . In 1994, Nesbitt published a study that found that companies on the Focus List trailed the S&;P 500 prior to being put on the list, but outperformed the S&;P 500 after being put on the list, and named this phenomenon the "CalPERS effect". The term has been used in the newsmedia. Whether a "CalPERS effect" actually exists has been studied in
5760-414: The current Board members are Rob Feckner (President), Priya Sara Mathur, Michael Bilbrey, John Chiang , Richard Costigan, Richard Gillihan, JJ Jelincic , Henry Jones (Vice President), Ron Lind, Betty Yee, Bill Slaton, Teresa Taylor and Dana Hollinger. Between 1999 and 2001, several conflicts among Board members were notable: In response to such conflicts, the Board took various measures (e.g., it adopted
5856-532: The electorate. The attacks failed to register and perhaps backfired, because Angelides' failed to take into account Schwarzenegger shift back to the political center, moderating his policies and returning to close co-operation with the Democratic-dominated assembly since his widely unsuccessful 2005 special election. According to campaign aides, Angelides was said to have micromanaged his campaign, down to minute and esoteric details such as paper shredders and
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#17328555033055952-463: The end of the fiscal year ended June 30, 2013, CalPERS had a total of $ 257.9 billion in assets invested as follows: $ 166.3 billion (64 percent) in equities, $ 40.2 billion (16 percent) in fixed income, $ 25.8 billion (10 percent) in real assets, $ 10.6 billion (4 percent) in cash equivalents, $ 9.2 billion (4 percent) in inflation-linked assets, $ 5.2 billion (2 percent) in hedge funds, and $ 0.5 billion (0.0 percent) in multi-asset class and other. Beginning in
6048-767: The environment, and increase employment opportunities. The following table lists largest pension funds by total assets by the SWF Institute. The contributions are invested by the EPF in various sectors, such as equities, bonds, and property, to generate returns. Members can withdraw their savings under specific conditions, such as retirement at the age of 55, for healthcare, housing, or education. The EPF also allows partial withdrawals before retirement for certain approved purposes. It has total of around 265 billion USD of asset under management as of end 2023.) The pension system in Romania
6144-498: The file was stored "in a password-protected area of the governor's office network computer system." The California Highway Patrol was asked to investigate. On September 13, it was discovered that the recording was obtained by members of the Angelides campaign on August 29 and 30 stored in an MP3 file and that campaign researcher Sean Sullivan and press spokesman Dan Newman submitted it to the Los Angeles Times . Katie Levinson,
6240-652: The five or 10 best people in American politics today." His work with Dukakis led him to serve as the chairman of the California Democratic Party from 1991 to 1993. Angelides first ran for State Treasurer in 1994, losing in the general election to Matt Fong . He served as Co-Chair of the Sacramento Mayor's Commission on Education and the City's Future from 1995 to 1996. He then ran again for State Treasurer in 1998 as
6336-420: The five-year period 1999 to 2003 period had a cumulative income of $ 16 billion, or about three billion a year on an investment portfolio of over $ 200 billion. The next four years were a period of investment income stability; a 24 billion investment income in 2004, 22 billion in 2005, 21 billion in 2006, and 41 billion in 2007. This four-year period had a cumulative investment income of $ 108 billion, or $ 27 billion
6432-556: The fund only grew at 4.4%. The benefits expansion bill, SB 400, passed with unanimous backing by California State Assembly Democrats and was signed into law by Governor Gray Davis . CalPERS then produced a video promoting the legislation with Chairman Crist promising greater benefits “without imposing any additional cost on the taxpayers” and the California State Employees Association president praising it as “the biggest thing since sliced bread”. The next year
6528-509: The funds lost an estimated $ 400 million due to a decision, again advocated by Angelides, to divest from companies located in India , Thailand , and China due to their labor practices. In early 2005, Angelides announced his intention to run against the current Governor Arnold Schwarzenegger in 2006, having made little secret of his ambition for the Governor's Office from the time that Schwarzenegger
6624-405: The gap with Westly). Schwarzenegger spent around $ 42 million during the whole of 2006, likely most of it in the general election as he did not face a serious primary challenge, while Angelides was estimated to only spend around $ 10 million after winning the nomination. Garry South , Steve Westly's campaign manager, stated Angelides' attacks on Schwarzenegger came across as boastful and partisan to
6720-686: The government-backed genocide in Sudan . His Green Wave Initiative invested $ 950,000,000 into environmental businesses and technologies and his Double Bottom Line Initiative invested 14 billion dollars into inner-city and underserved communities. In 2003, the CalPERS investment committee approved of Angelides' Investment Protection Standards, which require that investment banking firms who do business with CalPERS separate their research and investment banking practices. New York State Attorney General Eliot Spitzer complimented Angelides' plan saying, "I applaud Treasurer Angelides for his actions. Today's announcement
6816-413: The heirs of the deceased member if the death occurs during the member's subscription to the foundation. OYAK is incorporated as a private entity under its own law subject to Turkish civic and commercial codes. OYAK, while fulfilling its legal duties, as set in the law, also provides its members with social services such as loans, home loans and retirement income systems. The initial source of OYAK's funds
6912-591: The largest for any category of institutional investor ahead of mutual funds , insurance companies , currency reserves , sovereign wealth funds , hedge funds , or private equity . The U.S. Government 's Social Security Trust Fund , which oversees $ 2.57 trillion in assets, is the world's largest public pension fund. Open pension funds support at least one pension plan with no restriction on membership while closed pension funds support only pension plans that are limited to certain employees. Closed pension funds are further subclassified into: A public pension fund
7008-407: The law. Many pension funds have problem with governance. In Hungary, where pension funds are established as not-for-profit institutions, there is evidence that the governing body is generally ineffective in looking after the best interest of members. Most funds are established by financial institutions that find it easy to promote their candidates to the fund's supervisory board. Some pension funds in
7104-411: The major investors in listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold about USD $ 6 trillion in assets. In 2012, PricewaterhouseCoopers estimated that pension funds worldwide hold over $ 33.9 trillion in assets (and were expected to grow to more than $ 56 trillion by 2020),
7200-410: The minimal voting age from 18 to 16 if elected governor. On September 7, 2006, it was revealed that Governor Arnold Schwarzenegger referred to Latino Republican Assemblymember Bonnie Garcia as being fiery and hot-tempered because "black blood" mixed with "Latino blood" equals "hot". He further stated "I mean, they [Cubans and Puerto Ricans] are all very hot...they have the, you know, part of
7296-449: The organization's name was changed to "CalPERS" in 1992. By 1996, the CalPERS portfolio was worth $ 100 billion, and the number of members exceeded 1 million. In 1999, fund value reached $ 159.1 billion, requiring $ 159 million in state tax dollar contributions. In 1999, the CalPERS board proposed a benefits expansion that would allow public employees to retire at age 55 and collect more than half their highest salary for life. CalPERS predicted
7392-617: The passage of Assembly Bill 340 (AB 340), the pension reform legislation by the California Legislature, CalPERS members hired after January 1, 2013, are expected to pay 50 percent of the Total Normal Cost of the benefit plan in which they participate. Pension fund A pension fund , also known as a superannuation fund in some countries, is any program, fund, or scheme which provides retirement income . Pension funds typically have large amounts of money to invest and are
7488-480: The portfolio each year, and the portfolio is rebalanced so that holdings remain equally weighted. The purpose of monetizing the Focus List is to replicate the Wilshire studies—using actual funds to demonstrate and measure the “CalPERS Effect.” Monetizing the Focus List also allows CalPERS to realize a return on the increased value that typically occurs following an engagement. In 2014, a study by Wilshire Associates showed
7584-545: The president and Congress in January 2011, concluding that the crisis was avoidable and was caused by widespread failures of regulation, excessive risk taking by Wall Street, government leaders ill-prepared for crisis, and systemic breaches in accountability and ethics. The report made the New York Times and Washington Post best sellers lists and The New York Review of Books hailed it as "the most comprehensive indictment of
7680-546: The provision of benefits to “take precedence over any other duty.” The initiative, known as Proposition 162, passed by a single percent at the November California elections, 1992 . Proposition 162, also known as the "California Pension Protection Act of 1992," gave the PERS board "the sole and exclusive fiduciary responsibility over the assets of" PERS. To avoid confusion with public employees' retirement systems in other states,
7776-662: The reform as the “biggest rollback to public pension benefits in the history of California”, but it only resulted in a 1% to 5% reduction in contribution increases. Total savings from the reform are estimated to be $ 28 to $ 38 billion. In the fall of 2014, CalPERS named Ted Eliopoulos as chief investment officer. He won the #2 ranking in the Public Investor 100 for 2016. Blackstone Group LP announced in November 2015 that it would acquire 43 international and domestic real estate funds from CalPERS for $ 3 billion. In 2015, Kevin de León , who
7872-483: The retirement of California state employees began in 1921, but only in 1930 did California voters approve an amendment to the State Constitution to allow pensions to be paid to state workers, and only in 1931 was state law passed to establish a state worker retirement plan. In 1932, the "State Employees' Retirement System" (SERS) began operation. The California State Employees Association , established in 1931, began
7968-458: The rise and fall of the contribution percentages does not affect member-accrued retirement benefits, which are guaranteed by law. The percentage contributed above the monthly compensation breakpoint depends upon the benefit formula as shown in the “employee contributions” subsection of the summary of Plan Provisions in Appendix B of each public agency, state and schools annual valuation report. With
8064-462: The risks of running out of money in the future as their populations age. Pension funds are important financial institutions which are managing the retirement savings of millions. Effective governance in these entities is crucial not only to safeguard these funds but also to ensure they meet their future obligations to pensioners. The governance structures, strategies, and practices of pension funds significantly influence their stability, performance, and
8160-623: The state senate on May 25 but was halted in the assembly by Jim Cooper . The legal authority for the activities of CalPERS can be found in the constitution, laws, and regulations of the state of California, including: CalPERS is overseen by a 13-member Board of Administration whose members are elected, appointed, or ex officio: Notable past Board members have included Caspar Weinberger (1967–1969), Jesse Unruh (1983–1987), Gray Davis (1986–1994), Matt Fong (1995–1998), Kathleen Connell (1995–2003), Phil Angelides (1999–2006), Willie Brown (2000–2005), and Steve Westly (2003–2006). As of 2017,
8256-571: The state's $ 14.3 billion budget deficit by removing $ 1.6 billion from the pension fund. Wilson further sought to give the governor's office control of the PERS’ actuarial projections and the appointment of a majority of its board of directors. Public employee unions responded by seeking an amendment to the Constitution of California that would guarantee the board's independence, remove the fund's duty to minimize contributions or administrative costs, and require
8352-459: The trust of their stakeholders. Proper governance ensures that decisions are made transparently and that fund managers are accountable to stakeholders, including employees, retirees, and employers. According to the OECD Guidelines for Pension Fund Governance, the governance structure should clearly identify and separate operational and oversight responsibilities. Every pension fund should have
8448-512: The world have established public pension systems that are partially or fully funded by investments rather than relying solely on payroll taxes. This approach helps ensure the long-term solvency of these pension programs. Some examples of governments that use pension fund investments are: These are just a few examples of governments that have adopted an investment-based approach to managing their public pension systems. By diversifying and growing their pension fund assets, these countries aim to mitigate
8544-559: Was appointed president of AKT Development Corp. (a company owned by one of his business mentors, Angelo Tsakopoulos ) in 1984. In 1986, Angelides founded his own land development company, River West. Angelo Tsakopoulos, Angelides' former business partner, has been a major campaign donor to California office-holders, who, together with Angelides as chair of the California Democratic Party in the early 1990s, disbursed millions of dollars to Democratic candidates. Tsakopoulos has donated over $ 3,200,000 to Angelides' campaigns beginning in 1993 and for
8640-665: Was elected in 2003. On April 29, 2006, Angelides was endorsed by the California Democratic Party at the California State Democratic Convention in Sacramento. Despite this, polls from around that time showed that his opponent in the race, California State Controller Steve Westly , had an advantage in the primary. Angelides then won the endorsements of the Sacramento Bee and the Los Angeles Times , two of California's largest newspapers, and
8736-485: Was embraced by his campaign. During the Democratic primary, both Angelides and Westly used MySpace to rally supporters and spread their messages to potential voters. He stated his intent to increase high school funding by $ 200,000,000 to hire more counselors in high schools and middle schools as well as increasing admission quotas for the UC and CSU systems by 20,000 students. He has stated that he would "seriously consider" lowering
8832-722: Was established by the Social Security Institution Law No:5502 which was published in the Official Gazette No: 26173 dated 20.06.2006 and brings the Social Insurance Institution, General Directorate of Bağ-kur and General Directorate of Emekli Sandığı whose historical development are summarized above under a single roof in order to transfer five different retirement regimes which are civil servants, contractual paid workers, agricultural paid workers, self-employers and agricultural self-employers into
8928-515: Was honored with a Lifetime Achievement Award from the Congress for the New Urbanism on June 11, 2005. However, since completion, the development at Laguna West has been described as a "catastrophic failure" that replicates many of the features of conventional suburban sprawl . The Sierra Club has described Laguna West as a "conventional suburb." On July 15, 2009, Angelides was named Chairman of
9024-450: Was information accessed by one of our computers off of a taxpayer-funded, publicly available Web site that any member of the public would have access to..." She also expressed regret that Sullivan and Newman submitted the tape without consulting with other members of the campaign. According to The Inquirer , the supposed URL where the recording was taken from is http://speeches.gov.ca.gov/dir/06-21.htm (now offline) Roger Salazar ,
9120-406: Was reported to contribute to high employee satisfaction and a low employee turnover rate at CalPERS. CalPERS members contribute a percentage of their salary throughout their active membership. Member contribution rates are set by statute and can vary by membership category (miscellaneous or safety) and by benefit formula. Member contribution rates can change based on legislative law changes. However,
9216-596: Was the California State Senate majority leader at the time, introduced legislation to require CalPERS and CalSTRS divest from coal and the California Democratic Party passed a resolution in support of fossil fuel divestment . The bill was passed and, effective June 1, 2017, CalPERS was prohibited from maintaining holdings in companies that receive at least half of their revenue from thermal coal. In 2016, CalPERS fund value reached $ 295.1 billion. State tax dollar contributions have had to increase to $ 45 billion,
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