1. Stanford Institute for Economic Policy Research
Pension Governance
Richard Costigan
Monday, September 18, 2017
Stanford Institute for Economic Policy Research

2. Board Composition Set by Law
No authority to add benefits without Legislative approval
Authority to terminate and reduce benefits

3. CalPERS Board Governance Structure

4. Role of the CalPERS Board
Strategic oversight and governance
Investment strategy and asset allocation, including discount rate
Employer contribution rates
Health care premiums

5. 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

6. 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

7. 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