Editing CalPERS (section)

==Governance==

===Law===
The legal authority for the activities of CalPERS can be found in the constitution, laws, and regulations of the state of California, including:
* [[California Constitution]], Article XVI, Section 17, under which (as amended by Proposition 162) "the retirement board of a public pension or retirement system shall have plenary authority and fiduciary responsibility for investment of moneys and administration of the system".<ref>Michie's Legal Resources. [http://www.michie.com/california/lpext.dll?f=templates&fn=main-h.htm&cp=calpers 2009 California public employees' retirement law. Constitution of the state of California. Article XVI public finance.] {{Webarchive|url=https://web.archive.org/web/20081027024934/http://www.michie.com/california/lpext.dll?f=templates&fn=main-h.htm&cp=calpers |date=2008-10-27 }} Retrieved December 24, 2008.</ref>
* [[California Government Code]], Title 2, Division 5, Parts 3-8 (i.e., Sections 20000–22970.89).<ref>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/leg-reg-statutes/ca-public-employees-ret-law.xml The California public employees' retirement law.] {{webarchive|url=https://web.archive.org/web/20081027025149/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Fleg-reg-statutes%2Fca-public-employees-ret-law.xml |date=2008-10-27 }} Retrieved December 24, 2008.</ref> Among other parts, Part 3 covers the administration of the retirement system including membership, contributions, and benefits; and Part 5 covers the Public Employees' Medical and Hospital Care Act on health benefits.<ref>Legislative Counsel of California. [http://leginfo.ca.gov/cgi-bin/calawquery?codesection=gov California Government Code.] {{Webarchive|url=https://web.archive.org/web/20100505081407/http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=gov |date=2010-05-05 }} Retrieved December 24, 2008.</ref>
* [[California Code of Regulations]], Title 2, Division 1, Chapter 2, Sections 550–559.554.<ref>California Office of Administrative Law. [http://ccr.oal.ca.gov/linkedslice/shared/help.asp?RS=GVT1.0&VR=2.0&SP=CCR-1000#1430 California State Regulatory Agency List. Public Employees' Retirement System.] {{Webarchive|url=https://web.archive.org/web/20081217075446/http://ccr.oal.ca.gov/linkedslice/shared/help.asp?RS=GVT1.0&VR=2.0&SP=CCR-1000#1430 |date=2008-12-17 }} Retrieved December 24, 2008.</ref>

===Board of Administration===

CalPERS is overseen by a 13-member Board of Administration whose members are elected, appointed, or ex officio:<ref name=BoardStructure>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/organization/board/structure-responsibilities.xml About CalPERS. The CalPERS organization. Board of Administration. Structure & responsibilities.] {{webarchive|url=https://web.archive.org/web/20081027005955/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Forganization%2Fboard%2Fstructure-responsibilities.xml |date=2008-10-27 }} August 27, 2008. November 3, 2008.</ref>
* Six are elected from CalPERS members (two by all CalPERS members, one by active State members, one by active CalPERS school members, one by active CalPERS public agency members, and one by retired members of CalPERS)
* Three are appointed (two by the Governor, one by specified leaders of the Legislature)
* Four are ex officio ([[California State Treasurer]], [[California State Controller]], Director of the [[California Department of Human Resources]], and designee of the [[California State Personnel Board]])

Notable past Board members have included [[Caspar Weinberger]] (1967–1969), Jesse Unruh (1983–1987), [[Gray Davis]] (1986–1994), [[Matt Fong]] (1995–1998), [[Kathleen Connell]] (1995–2003), [[Phil Angelides]] (1999–2006), [[Willie Brown (politician)|Willie Brown]] (2000–2005), and [[Steve Westly]] (2003–2006).<ref name=CalPERSstory/>

As of 2017, the current Board members are Rob Feckner (President), Priya Sara Mathur, Michael Bilbrey, [[John Chiang (California politician)|John Chiang]], Richard Costigan, Richard Gillihan, [[JJ Jelincic]], Henry Jones (Vice President), Ron Lind, Betty Yee, Bill Slaton, Teresa Taylor and Dana Hollinger.<ref>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/organization/board-members/home.xml] {{webarchive|url=https://web.archive.org/web/20140722190859/http://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Forganization%2Fboard-members%2Fhome.xml |date=2014-07-22 }} Board members. May 2, 2014. Retrieved May 8, 2014.</ref>

====Controversies====
Between 1999 and 2001, several conflicts among Board members were notable:
* In 1999, after Board member [[Phil Angelides]] (also state treasurer) criticized a statement in a report, Board chairman Charles Valdes said about Angelides "What we have here is a Greek treasurer who doesn't like [[Turkey]], the country; who doesn't like [[Turkish people|Turks]], who is trying to … drive our policy according to those ethnic hatreds".<ref name=Rosenblatt>Rosenblatt, Robert A. [https://www.latimes.com/archives/la-xpm-1999-oct-25-mn-26054-story.html Statement on Turkish past fuels feud at pension fund.]  ''Los Angeles Times'', October 25, 1999. Retrieved December 20, 2008.</ref> Angelides responded that he was "do[ing] what is best for the state".<ref name=Rosenblatt/> Valdes later apologized for the remarks.<ref name=Holson>Holson, Laura M. [https://www.nytimes.com/2001/11/27/business/public-feuding-pension-fund-dirty-laundry-keeps-flying-calpers-no-1-plan-us.html Public feuding at pension fund; dirty laundry keeps flying at Calpers, no. 1 plan in U.S.] {{Webarchive|url=https://web.archive.org/web/20180728004907/https://www.nytimes.com/2001/11/27/business/public-feuding-pension-fund-dirty-laundry-keeps-flying-calpers-no-1-plan-us.html |date=2018-07-28 }} ''New York Times'', November 27, 2001. Retrieved December 20, 2008.</ref>
* Board member [[Kathleen Connell]] (also state controller) sued CalPERS in January 2001 to limit its investment managers' pay.<ref name=Chernoff>Chernoff, Joel. CalPERS sued for hiking pay of in-house managers. ''Pensions & Investments'', Vol. 29, Issue 4, February 19, 2001, pages 3-4.</ref> Although CalPERS argued that the higher salaries were necessary to compete for qualified investment managers and that CalPERS had the authority under Proposition 162 to issue the higher salaries,<ref name=Chernoff/> it lost the lawsuit, which "helped prompt the fund's chief investment officer to quit".<ref name=Holson/>
* Valdes endorsed a lawsuit against the Board's proposal to change its election procedures to require a majority vote (not simply a plurality vote) for Board seats chosen by CalPERS members.<ref name=Holson/>
In response to such conflicts, the Board took various measures (e.g., it adopted a "document of collegiality" in October 2001).<ref name=Holson/>

Other controversies have affected the Board, such as:
* In 1998, it was discovered that several Board members were "taking expense-paid trips and other gifts from people trying to do business with" CalPERS.<ref name=Walsh2002>Walsh, Mary Williams. [https://www.nytimes.com/2002/10/13/business/calpers-wears-a-party-or-union-label.html Calpers wears a party, or union, label.] {{Webarchive|url=https://web.archive.org/web/20180728003517/https://www.nytimes.com/2002/10/13/business/calpers-wears-a-party-or-union-label.html |date=2018-07-28 }} ''New York Times'', October 13, 2002. Retrieved December 23, 2008.</ref>
* Articles in 2002–03 issues of ''[[BusinessWeek]]''<ref>Palmeri, Christopher. [http://www.businessweek.com/magazine/content/02_25/b3788097.htm Can CalPERS afford to throw stones? The pension fund is rife with potential conflicts of interest.] {{Webarchive|url=https://web.archive.org/web/20090211000306/http://www.businessweek.com/magazine/content/02_25/b3788097.htm |date=2009-02-11 }} ''Business Week'', June 24, 2002. Retrieved December 27, 2008.</ref> and ''[[The Wall Street Journal]]''<ref>[https://www.wsj.com/articles/SB1043977869538534464 Cronyism at Calpers.] {{Webarchive|url=https://web.archive.org/web/20180319234629/https://www.wsj.com/articles/SB1043977869538534464 |date=2018-03-19 }} ''Wall Street Journal'', January 31, 2003. Retrieved December 27, 2008.</ref> noted [[cronyism]] and [[Conflict of interest|conflicts of interest]] among Board members.
* A president of the Board, Sean Harrigan, was removed from his position in December 2004 amid criticism for his activism on matters of corporate governance.<ref>{{cite book |last1=Webber |first1=David H. |author-link=David H. Webber |title=The Rise of the Working-Class Shareholder: Labor's Last Best Weapon |date=April 2018 |publisher=Harvard University Press |isbn=978-0-674-91946-4 |page=11 |url=https://www.degruyter.com/viewbooktoc/product/511375 |access-date=15 November 2019 |url-access=subscription}}</ref> He claimed his removal was politically motivated.<ref name=Walsh2004>Walsh, Mary Williams. [https://www.nytimes.com/2004/12/02/business/02calpers.html Calpers ouster puts focus on how funds wield power.] {{Webarchive|url=https://web.archive.org/web/20150528014148/http://www.nytimes.com/2004/12/02/business/02calpers.html |date=2015-05-28 }} ''New York Times'', December 2, 2004.</ref><ref>Yu, Roger. [https://www.usatoday.com/money/2004-12-01-calpers-president-ousted_x.htm Calpers president says governor, chamber behind his ouster.] {{Webarchive|url=https://web.archive.org/web/20110622121357/http://www.usatoday.com/money/2004-12-01-calpers-president-ousted_x.htm |date=2011-06-22 }} ''USA Today'', December 1, 2004.</ref>
* In September 2014, California's State controller, John Chiang criticized the fund for "passive" approach towards pension spiking - a practice of inflating workers' benefits just before retirement in order to boost their pensions- and failing to adequately review payroll data, inviting abuse.<ref>{{cite news|last1=Reid|first1=Time|title=Calpers criticized for passive approach to pension 'spiking'|date=9 September 2014|url=https://www.reuters.com/article/us-usa-municipals-calpers-idUSKBN0H42BM20140909|work=Reuters|access-date=14 September 2014|archive-date=3 October 2014|archive-url=https://web.archive.org/web/20141003085200/http://www.reuters.com/article/2014/09/09/us-usa-municipals-calpers-idUSKBN0H42BM20140909|url-status=live}}</ref>

===Executives===
CalPERS employees perform under the direction of the [[chief executive officer]] (CEO) of CalPERS. Past CEOs have been:<ref name=CalPERSstory/> Earl W. Chapman (1932–1956); Edward K. Coombs (acting, 1956); William E. Payne (1956–1974); Carl J. Blechinger (1975–1983); Sidney C. McCausland (1984–1986); Kenneth G. Thomason (acting or interim, 1987); Dale M. Hanson (1987–1994);<ref>Geissinger, Steve. CalPERS head to run new firm - venture capital company is next task for Hanson. ''Daily News of Los Angeles'', May 20, 1994.</ref> Richard H. Koppes (interim, 1994); James E. Burton (1994–2002);<ref>Pender, Kathleen. Calpers appoints new CEO. ''San Francisco Chronicle'', September 16, 1994.</ref> Robert D. Walton (interim, 2002); Fred R. Buenrostro, Jr. (2002–2008);<ref>State agency chief to head CalPERS. ''Sacramento Bee'', September 19, 2002.</ref><ref>{{cite news|last1=Elias|first1=Paul|title=Former CALPERS Chief Admits to Taking Bribes|agency=[[The Associated Press]]|date=July 22, 2014|quote=Frederico Buenrostro Jr.,...entered his plea in San Francisco federal court, and acknowledged receiving...$200,000 in cash....}}</ref> Kenneth W. Marzion (interim, 2008–2009);<ref>Ortiz, Jon. [http://www.sacbee.com/103/story/933055.html CalPERS names Marzion as interim chief executive.] {{webarchive|url=https://web.archive.org/web/20080514002254/http://www.sacbee.com/103/story/933055.html |date=2008-05-14 }} ''Sacramento Bee'', May 13, 2008.</ref> Anne Stausboll (2009–June 2016); and Marcie Frost (October 2016 – Present).

Reporting to the CEO, the [[executive officer]]s of CalPERS are: deputy executive officers for customer services and support, health benefit programs, policy and planning, operations and technology, and external affairs; a [[general counsel]]; a [[chief actuary]]; and a [[chief financial officer]]; a [[chief information officer]]; a [[chief risk officer]]; and a [[chief investment officer]].<ref>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/organization/executives/home.xml Executive officers.] {{webarchive|url=https://web.archive.org/web/20081027024905/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Forganization%2Fexecutives%2Fhome.xml |date=2008-10-27 }} November 24, 2008. Retrieved December 17, 2008.</ref> Under the executive officers, CalPERS employees work in 23 major branches, divisions, and offices.<ref>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/organization/divisions-offices/home.xml About CalPERS. The CalPERS organization. Divisions & offices.] {{webarchive|url=https://web.archive.org/web/20081027024948/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Forganization%2Fdivisions-offices%2Fhome.xml |date=2008-10-27 }} January 15, 2008. Retrieved November 3, 2008.</ref> Approximately $415.1 million is budgeted in 2014-2015 for administrative functions in CalPERS, such as paying the salaries of 2,700 CalPERS employees.<ref name="facts"/><ref name=FactsGeneral/>