Stanford Institute for Economic Policy Research Pension Governance Richard Costigan Monday, September 18, 2017 Stanford Institute for Economic Policy Research
Board Composition Set by Law No authority to add benefits without Legislative approval Authority to terminate and reduce benefits
CalPERS Board Governance Structure
Role of the CalPERS Board Strategic oversight and governance Investment strategy and asset allocation, including discount rate Employer contribution rates Health care premiums
Board Education Board members, designees receive 24 hours of education every two years Education focuses on: Duties and responsibilities of a trustee of a public pension system CalPERS retirement, health benefits plan designs; implementation; funding CalPERS investment policy, strategy Educational activity posted on CalPERS website
A Track Record of Reforms Adopted a set of core competencies for the Board and an Education Policy Adopted personal trading regulations New governance policy requiring disclosure of conflicts and annual fiduciary training
A Track Record of Reforms Third party assessment of Board performance Sponsored legislation restricting placement agents Launched Ethics hotline Investment decisions delegated to CIO Adopted a set of pension and investment beliefs