CalPERS

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The California Public Employees' Retirement System (CalPERS) provides pension fund, healthcare and other retirement services for approximately 1.5 million California public employees. As of May 2006, it owns $230 billion worth of stock, bonds, funds, and private equity. It is the largest pension fund in the United States. CalPERS provides benefits to all state government employees and, by contract, to local agency and school employees. Many California counties and large cities have their own retirement system. California teachers are covered under CalSTRS (California State Teacher Retirement System), with funds in excess of $157 billion.^[1]

1 CalPERS shareholder proposals
2 Praise and Criticism
3 References
4 External links

[edit] CalPERS shareholder proposals

Being one of the largest owners in the world (and the third largest purchaser of employee health benefits in the nation), CalPERS has attempted to use this power to change the way certain things are done in business. For example:

Demanding companies disclosed their Y2k readiness
Calling on companies which operate in offshore havens to repatriate to the United States
Calling for reform in executive compensation, especially Golden Parachutes
Suing the NYSE over allegations that their specialists (floor workers) engage in practices which hurt investors
Banning investment of its funds in nine companies that do business in Sudan until the government of that country halts ongoing genocide

[edit] Praise and Criticism

CalPERS has been both praised and criticized by some for its shareholder activism. Many feel that the organization has well represented the will of the employees whose pensions it manages by pushing for a wide array of causes, ranging from greater fiscal responsibility to social justice. Some others argue that this unduly interferes with business, is backed by a political agenda (citing the dominance of Democrats on CalPERS' board - which could be said to counterbalance a Republican agenda to not interfere with business), and further encourages the belief that California is "anti-business." The recent president of CalPERS, Sean Harrigan, was removed from his position in December 2004, amid charges that his departure was politically motivated and done at the bidding of powerful corporate lobbyists.