Bill Would Alter CalPERS’ Board Structure To Add Financial Expertise
California Assembly member Marc Levine (D-San Rafael) has introduced a bill (AB 1163) that would restructure the CalPERS board to add financial expertise and reduce labor union influence, Capitol Weekly reports.
The bill would incorporate goals from Gov. Jerry Brown's (D) 12-point pension reform plan.
Details of Brown's Plan
The pension reform plan -- which Brown proposed in October 2011 -- states, "In the past, the lack of independence and financial sophistication on public retirement boards has contributed to unaffordable pension benefit increases."
According to the plan, the CalPERS board needs members who can ensure that retirees receive promised benefits "without exposing taxpayers to large unfunded liabilities."
Details of Bill
The legislation would double the number of gubernatorial appointees on the board to six,Â making it equal toÂ the number of labor representatives.
Under the bill, the governor's finance director would replace the State Personnel Board representative on the board.
In addition, the bill would require the governor to appoint two additional members with "financial expertise" and who have no personal or organizational ties to the pension system. This would bring the total number of board members to 15, according to the legislation.The bill would direct the secretary of state to put the legislation's provisions -- which require voter approval -- on the ballot in the next statewide election (Mendel, Capitol Weekly, 3/18). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.