Editing CalPERS (section)

==History==
Discussion about providing for 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.<ref name=CalPERSstory>''Dedication. Vision. Heart. The CalPERS story.'' Chantilly, VA: History Factory, 2007. {{ISBN|1-882771-19-2}}.</ref> In 1932, the "State Employees' Retirement System" (SERS) began operation.<ref name=CalPERSstory/><ref name=Pichardo>Pichardo, Raquel. [https://archive.today/20130131110545/http://www.pionline.com/apps/pbcs.dll/article?AID=/20070514/PRINTSUB/70511017/1031/TOC CalPERS a model of innovation at 75.] ''Pensions & Investments'', May 14, 2007. Retrieved October 30, 2008.</ref> The [[California State Employees Association]], established in 1931, began a close relationship with SERS that continues to this day.<ref name=CalPERSstory/>

In 1939, the state Legislature passed a bill that allowed local public agencies (such as cities, counties, and school districts) to participate in SERS.<ref name=CalPERSstory/> Initially, SERS could invest only in bonds, but in 1953 a new state law allowed SERS to invest in real estate.<ref name=CalPERSstory/><ref name=Pichardo/> SERS then built a {{convert|670000|sqft|m2|adj=on}}, 16-story building in [[Sacramento, California|Sacramento]] which opened in 1965; part of the building housed SERS employees, and part of the building was leased to other state agencies.<ref name=CalPERSstory/>

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".<ref name=CalPERSstory/> Because by 1967 SERS was contracting with 585 local public agencies for retirement benefits, its name was changed to the "Public Employees' Retirement System" (PERS).<ref name=CalPERSstory/> 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;<ref name=CalPERSstory/> in 1984, Proposition 21 removed the 25% limitation.<ref name=FactsGeneral/><ref name=Pichardo/>

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 the Council of Institutional Investors, an organization of pension funds and other institutions that opposed "[[greenmail]] and other corporate practices that benefited only management".<ref name=CalPERSstory/>

In 1986, the headquarters building of PERS, now called "Lincoln Plaza North", was completed in Sacramento at a cost of $81 million.<ref name=LPN>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/hq-expansion/fast-facts/north.xml Lincoln Plaza North building.] {{webarchive|url=https://web.archive.org/web/20081027061316/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Fhq-expansion%2Ffast-facts%2Fnorth.xml |date=2008-10-27 }} May 2, 2007. Retrieved November 3, 2008.</ref> The building, which has {{convert|492900|sqft|m2}}, is known for its six-story-high [[Atrium (architecture)|atrium]] and landscaped terraces.<ref name=LPN/>

===Governor Pete Wilson===
In 1990, fund value reached $49.8 billion.<ref name="LAT918">{{cite news|last1=Dolan|first1=Jack|title=The Pension Gap|url=http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/|access-date=19 September 2016|work=[[Los Angeles Times]]|date=18 September 2016|archive-date=18 September 2016|archive-url=https://web.archive.org/web/20160918173134/http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/|url-status=live}}</ref> In July 1991, Governor [[Pete Wilson]] addressed the state's $14.3 billion budget deficit by removing $1.6 billion from the pension fund.<ref name="LATimes107">{{cite news|last1=Myers|first1=John|title=How a governor's bid to exert control over California public pensions backfired|url=http://www.latimes.com/projects/la-pol-sac-pension-fight-pete-wilson-20161009/|access-date=10 October 2016|work=[[Los Angeles Times]]|date=7 October 2016|archive-date=10 October 2016|archive-url=https://web.archive.org/web/20161010025751/http://www.latimes.com/projects/la-pol-sac-pension-fight-pete-wilson-20161009/|url-status=live}}</ref> 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.<ref name=LATimes107/> 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 the provision of benefits to "take precedence over any other duty."<ref name=LATimes107/> The initiative, known as Proposition 162, passed by a single percent at the November [[California elections, 1992]].<ref name=LATimes107/> 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.<ref name=Pichardo/><ref>[http://www.peoplesadvocate.org/prop162.html Proposition #162.] {{Webarchive|url=https://web.archive.org/web/20080509072413/http://www.peoplesadvocate.org/prop162.html |date=2008-05-09 }} People's Advocate. Retrieved December 24, 2008.</ref>

To avoid confusion with public employees' retirement systems in other states, the organization's name was changed to "CalPERS" in 1992.<ref name=CalPERSstory/> By 1996, the CalPERS portfolio was worth $100 billion, and the number of members exceeded 1 million.<ref name=CalPERSstory/>

===Governor Gray Davis===
In 1999, fund value reached $159.1 billion, requiring $159 million in state tax dollar contributions.<ref name=LAT918/> 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.<ref name=LAT918/> CalPERS predicted the benefits would require no increase in the State's contributions by projecting an average annual return of 8.25% over the next decade.<ref name=LAT918/> 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."<ref name=LAT918/> CalPERS' chief actuary, objected, finding that it would be "fairly catastrophic" if the fund only grew at 4.4%.<ref name=LAT918/>

The benefits expansion bill, SB 400, passed with unanimous backing by [[California State Assembly]] Democrats and was signed into law by Governor [[Gray Davis]].<ref name=LAT918/> 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".<ref name=LAT918/>

The next year the [[dot-com bubble]] burst, and CalPERS did not grow, instead losing value in the [[stock market downturn of 2002]].<ref name=LAT918/> In 2001–2002, CalPERS provided technical assistance for the [[Sarbanes-Oxley Act]] because it had sustained financial losses from the [[Enron]] and [[MCI Inc.|WorldCom]] bankruptcies.<ref name=CalPERSstory/> After the [[Great Recession]], in 2009 CalPERS investments lost 24%, dropping $67 billion in value.<ref name=LAT918/> Chairman Crist retired from 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.<ref name=LAT918/>

In November 2005, CalPERS expanded its headquarters with the {{convert|560000|sqft|m2|adj=on}} "Lincoln Plaza East & West" buildings which cost $265 million.<ref>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/hq-expansion/fast-facts/east-west.xml Lincoln Plaza East & West.] {{webarchive|url=https://web.archive.org/web/20081027061306/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Fhq-expansion%2Ffast-facts%2Feast-west.xml |date=2008-10-27 }} June 27, 2008. Retrieved November 3, 2008.</ref><ref name=Vellinga>Vellinga, Mary Lynne. CalPERS' new look - It opens a downtown headquarters that's light, airy and innovative. ''Sacramento Bee'', November 12, 2005.</ref> The architecture of the buildings, which received praise, includes an entry tower {{convert|90|ft|m}} high in a shape reminiscent of a tree which is made of steel covered with glass.<ref name=Vellinga/> The project was awarded a Gold [[Leadership in Energy and Environmental Design]] (LEED) rating.<ref>Boehland, Jessica. [http://www.zinio.com/express2?issue=203611402 Close to home: A headquarters consolidation more than fills its predecessor’s big shoes.] {{Webarchive|url=https://web.archive.org/web/20080603134239/http://www.zinio.com/express2?issue=203611402 |date=2008-06-03 }} ''GreenSource Magazine'', vol. 2, no. 2, April 2007, pages 78-83. Retrieved November 6, 2008.</ref>

===Governor Jerry Brown===
In 2012, Governor [[Jerry Brown]] signed legislation that reduced benefits for all new state employees and sought to combat [[pension spiking]].<ref name="lat1028">{{cite news|last1=Lin|first1=Judy|title=Jerry Brown touted his pension reforms as a game-changer. But they've done little to rein in costs|url=http://www.latimes.com/projects/la-me-pension-crisis-brown/|access-date=7 November 2016|work=[[Los Angeles Times]]|date=28 October 2016|archive-date=7 November 2016|archive-url=https://web.archive.org/web/20161107092433/http://www.latimes.com/projects/la-me-pension-crisis-brown/|url-status=live}}</ref> 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.<ref name=lat1028/> Governor Brown promoted 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.<ref name=lat1028/> Total savings from the reform are estimated to be $28 to $38 billion.<ref name=lat1028/>

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.<ref>{{Cite web|title = Ted Eliopoulos|url = https://www.swfinstitute.org/news/48432/ted-eliopoulos-takes-2-on-public-investor-100-2016/|website = www.swfinstitute.org.|access-date = 2016-10-23}}</ref> Blackstone Group LP announced in November 2015 that it would acquire 43 international and domestic real estate funds from CalPERS for $3 billion.<ref>{{Cite news | title=Blackstone to buy about $3 billion in property fund stakes from Calpers | url=https://www.reuters.com/article/us-blackstone-group-calpers/blackstone-to-buy-about-3-billion-in-property-fund-stakes-from-calpers-idUSKCN0T12MG20151112 | first=Koh Gui | last=Qing | work=[[Reuters]] | date=November 12, 2015 | access-date=February 3, 2019 | archive-date=February 4, 2019 | archive-url=https://web.archive.org/web/20190204014453/https://www.reuters.com/article/us-blackstone-group-calpers/blackstone-to-buy-about-3-billion-in-property-fund-stakes-from-calpers-idUSKCN0T12MG20151112 | url-status=live }}</ref>

In 2015, [[Kevin de León]], who 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]].<ref>{{Cite web |date=2015-02-11 |title=California calls on pension funds to divest from coal in climate change push |url=http://www.theguardian.com/us-news/2015/feb/10/california-pension-funds-coal-divestment-call-climate-change |access-date=2022-05-27 |website=the Guardian |language=en}}</ref><ref>{{Cite web |last=Hirji |first=Zahra |date=2015-05-22 |title=California Democrats Approve Sweeping Fossil Fuel Divestment Resolution |url=https://insideclimatenews.org/news/22052015/california-democrats-approve-sweeping-fossil-fuel-divestment-resolution/ |access-date=2022-05-27 |website=Inside Climate News |language=en-US}}</ref> 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.<ref>{{Cite web |last=Starkman |first=Dean |date=2015-10-19 |title=CalPERS set to divest from thermal-coal companies |url=https://www.latimes.com/business/la-fi-calpers-divest-20151019-story.html |access-date=2022-05-31 |website=Los Angeles Times |language=en-US}}</ref>

In 2016, CalPERS fund value reached $295.1 billion.<ref name=LAT918/> State tax dollar contributions have had to increase to $45 billion, a 3,000% increase from before the 1999 benefits expansion.<ref name=LAT918/> Promised benefits exceeded funds available by $241.3 billion.<ref name="LATlin">{{cite news|last1=Lin|first1=Judy|title=Understanding California's Public Pension Debt|url=http://www.latimes.com/projects/la-me-pension-unfunded/|access-date=19 September 2016|work=[[Los Angeles Times]]|date=18 September 2016|archive-date=18 September 2016|archive-url=https://web.archive.org/web/20160918174130/http://www.latimes.com/projects/la-me-pension-unfunded/|url-status=live}}</ref> Unfunded retiree healthcare costs add an additional $125 billion to California's public retirement debt.<ref name=LATlin/>

=== Governor Gavin Newsom ===
During [[Gavin Newsom]]'s tenure, activists have increasingly called for CalPERS to more broadly [[Fossil fuel divestment|divest from fossil fuels]].<ref>{{Cite web |title=Resolution Calling for CalPERS Fossil Fuel Divestment {{!}} Academic Senate |url=https://senate.sfsu.edu/resolution/resolution-calling-calpers-fossil-fuel-divestment |access-date=2022-05-27 |website=senate.sfsu.edu}}</ref><ref name=":0">{{Cite web |title=Pressure Mounts on CalPERS to Ditch Fossil Fuels {{!}} Chief Investment Officer |url=https://www.ai-cio.com/news/pressure-mounts-on-calpers-to-ditch-fossil-fuels/ |access-date=2022-05-27 |website=www.ai-cio.com}}</ref> On February 17, 2022, State Senator [[Lena Gonzalez]] introduced legislation that would require CalPERS and CalSTRS divest.<ref>{{Cite web |date=2022-05-27 |title=Fossil fuel divestment bill passes California Senate |url=https://www.financialstandard.com.au/news/fossil-fuel-divestment-bill-passes-california-senate-179795285 |access-date=2022-05-27 |website=Financial Standard |language=en}}</ref><ref>{{Cite web |title=State Senator Lena Gonzalez Introduces Fossil Fuel Divestment Bill in CA Legislature |url=https://www.dailykos.com/story/2022/2/17/2080895/-State-Senator-Lena-Gonzalez-Introduces-Fossil-Fuel-Divestment-Bill-in-CA-Legislature |access-date=2022-05-27 |website=Daily Kos}}</ref><ref>{{Cite news |last=Venteicher |first=Wes |date=February 20, 2022 |title=State Senate proposal would force CalPERS, CalSTRS to sell oil and gas holdings |work=[[The Sacramento Bee]] |url=https://www.sacbee.com/news/politics-government/the-state-worker/article258526203.html |access-date=May 27, 2022}}</ref> The CalPERS board has opposed proposals to divest.<ref>{{Cite news |date=2022-03-08 |title=Top US pension fund rejects calls for fossil fuel divestment |work=Financial Times |url=https://www.ft.com/content/c9430eb5-201c-46e8-a10d-d9c098c9d4b4 |access-date=2022-05-27}}</ref><ref>{{Cite web |date=2022-04-19 |title=CalPERS' board opposes 2 state divestment bills |url=https://www.pionline.com/pension-funds/calpers-board-opposes-2-state-divestment-bills |access-date=2022-05-27 |website=Pensions & Investments |language=en}}</ref> The bill passed the state senate on May 25 but was halted in the assembly by [[Jim Cooper (California politician)|Jim Cooper]].<ref>{{Cite web |date=2022-05-26 |title=California Divestment Bill Moves Forward |url=https://www.energyintel.com/00000181-0203-d67b-a3cd-f6dbdfa70000 |access-date=2022-05-27 |website=Energy Intelligence |language=en}}</ref><ref>{{Cite web |date=2022-06-21 |title=California bill requiring CalPERS, CalSTRS to divest halted by committee chair |url=https://www.pionline.com/esg/california-bill-requiring-calpers-calstrs-divest-halted-committee-chair |access-date=2022-07-03 |website=Pensions & Investments |language=en}}</ref><ref>{{Cite web |title='Moral Failure': California Dem Pulls Plug on Fossil Fuel Divestment Legislation |url=https://www.commondreams.org/news/2022/06/21/moral-failure-california-dem-pulls-plug-fossil-fuel-divestment-legislation |access-date=2022-07-03 |website=Common Dreams |language=en}}</ref>