Category Archives: California

Annual Reporting is a Gateway to Divestment

Activists remain focused on politicizing pension funds and jeopardizing the financial future of public servants. By many accounts, these efforts have failed to convince pension funds, university endowments, and other entities from divesting holdings from companies the activists do not agree with.

Across the nation, we have seen a trend towards substituting outright divestment for non-binding annual reports to pension managers, legislators, or other interested parties. A recent example of a bill repurposed from annual reporting is the California Senate Read More

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Engagement – The Better Path Forward for CalSTRS

Some rallied activists and environmentalists turned up the heat this year on divestment efforts across the nation targeting pension funds, endowments, and institutions that have fossil fuel holdings as part of a broader, diverse stock portfolio.

The California State Teachers’ Retirement System (CalSTRS) quickly became a top-target for divestment supporters. CalSTRS released a short video explaining its reasoning not divesting and its mission to engage with companies.

CalSTRS rightfully notes, “Divestment undermines our long-term strategy and increases risk.” If pension … Read More

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The Dangers of Ideological Investing

Millions of retired state employees have dedicated their lives working for the promised pension funds that come with a lifetime of public service. The Los Angeles Daily News Editorial Board recently wrote a piece on the harm of politicizing state pension funds. The article highlights the negative impacts that ideological investment decisions have on pension funds.

The California legislature passed the Public Divestiture of Thermal Coal Companies Act of 2015 that mandated California Public Employees’ (CalPERS) and California State Teachers’ … Read More

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Underfunded Pensions – The Nice & Naughty List

Pensions across the country are habitually underfunded. Recent reports released from the Center for State and Local Government Excellence show that state and local pension plans are only about 74% funded and have unfunded liabilities of about $1.4 trillion. They also found that 20% of pensions are under 60% funded. This is appalling when it is put into context that not only are the pensioners going without, but the extra costs falls on tax payers around the country.

Costs are … Read More

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Decision for the Board Just Became Easier – Divesting Means More Costs for the City of San Francisco and No Reward

The San Francisco Employees’ Retirement System (SFERS) Board has an upcoming decision to make that will affect the lives of thousands of Californians. However, this decision just became a very easy one. A recent study from Compass Lexecon found that divesting from oil, natural gas, and coal securities would cost SFERS $11.5 million annually, the authors note in a recent San Francisco Examiner column. That equals to $149 billion loss over 50 years.

The study also found that the decision … Read More

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As CalPERS Hits Earnings Target, Public Workers Urge Fund to Focus on Pensions

The California Public Employees’ Retirement System (CalPERS), the biggest pension system in the country, reported some good news recently, when officials announced a stellar 11.2% return rate percent, a stark contrast to less than stellar returns from the past two years, when CalPERS recorded returns of .61% and 2.4%.

The good news comes at a time when pension funds all across the country are being pressured to stray away from their primary mission, securing the retirement of those retirees who … Read More

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Coalition Leaders Tell California Senate: Protect Pensions, Reject AB 20

In anticipation of the California State Senate hearing on Assembly Bill 20 on July 10, California members of Protect our Pensions sent a letter urging lawmakers to take politics out of pension decisions, and to reject this costly legislation.

The bill, introduced in late 2016, is designed to pressure the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS) to divest from businesses involved with the Dakota Access Pipeline (DAPL), a project that is already … Read More

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Editorial: California Insurance Commissioner’s Divestment Rationale “Doesn’t Pass the Laugh Test”

The push to inject politics into investment decisions has spread beyond just pensions and has permeated to other sectors as well. Most recently, 13 state officials signed onto a cease and desist letter to California Insurance Commissioner Dave Jones, who has used his position to pressure insurance companies to divest from traditional energy assets.

The editorial board of The Oklahoman spoke out against the initiative as well, explaining just why the Mr. Jones’ crusade is harmful to consumers far beyond … Read More

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Orange County Register Op-ed: “AB 20 Would Worsen California’s Public Pension Crisis”

AB 20, the controversial bill designed to pressure CalPERS and CalSTRS to divest of funds of companies involved in the construction of the Dakota Access Pipeline (DAPL), received more bad press today. The  Orange County Register published an op-ed calling the legislation “problematic” and highlighting the negative effect of divestment on the state’s pension funds.

Economist Dr. Wayne Winegarden of the Pacific Research Institute stressed what the effects of increasing the pension shortfall would be:

Without properly accounting for risk,

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Coalition Members Urge San Francisco Retirement Board to “Put the Needs of SF Retirees First”

With the members of San Francisco Employees’ Retirement System set to meet to discuss, among other issues, the topic of divestment, members of Protect our Pensions took to the pages of the San Francisco Examiner to urge the board to consider the negative consequences to pensioners that such a decision would cause.

Carlos Solorzano, the CEO of the Hispanic Chambers of Commerce of San Francisco and Yolanda Hudson, a pensioner and a retired science teacher from Detroit, made the case … Read More

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