The purpose of a pension fund is to maximize returns, so the retirees have a safe place for their money. In California, it is just the opposite—they look for ways to minimize returns. CalPERS has an unfunded liability of over one trillion. CalSTRS has an unfunded liability of over $400 billion.
Instead of trying to limit the unfunded liability, Sacramento Democrats want to make it larger and endanger the pensions of millions of Californians.
“Senate Bill 252 would do nothing to combat the dangers of climate change,” CalPERS Chief Executive Officer Marcie Frost said. “It’s only impact, at least in the short term, would be to make it that much harder to achieve the investment returns needed to pay the benefits promised to Calpers members.”
CalPERS argument is that it uses its investment clout to force climate change issues at the companies it invests in.
In fact, if implemented, this will ADD $125 million a year to the unfunded liabilities of these pension plans. Think your retirement is safe—not with Democrats in charge.,
Two Largest Pension Funds In The U.S. Could Be Forced Into $15B Oil, Gas Divestment
Daniel Terungwa, MajorWaves, 5/29/23 https://www.majorwavesenergyreport.com/two-largest-pension-funds-in-the-u-s-could-be-forced-into-15b-oil-gas-divestment/
Two Largest Pension Funds in the U.S. Could be Forced into $15B Oil, Gas Divestment
A new bill that was approved by the California state Senate last week, would require two of the country’s largest pension funds to pull $15 billion in investments from oil and gas companies.
The measure passed the California Senate with a vote of 23-10, according to Bloomberg, and would require the California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System to stop any new oil and gas investments by 2024, and completely divest from large oil and gas company stocks by 2031.
The Senate passed a similar bill a year ago, but it died in the Assembly. This year’s crack at divesting the pension funds from oil and gas will now head to the Assembly, where it may share a similar fate.
The Senate bill did not earn the backing of CalPERS.
CalPERS Chief Executive Officer Marcie Frost said
Senate Bill 252 would do nothing to combat the dangers of climate change,” CalPERS Chief Executive Officer Marcie Frost said. “It’s only impact, at least in the short term, would be to make it that much harder to achieve the investment returns needed to pay the benefits promised to Calpers members.”
CalPERS argument is that it uses its investment clout to force climate change issues at the companies it invests in.
One of the authors of the bill, Senator Lorena Gonzalez, argues that CalPERS has had decades to push for change with little success. “Clearly their strategy isn’t working,” she said.
The two funds, CalPERS and CalSTRS are massive, managing more than $820 billion in assets, and seek a return rate of 6.8%.
Backers of the bill argue that the two massive funds’ investments into oil and gas are in direct conflict with California’s net-zero by 2045 goals.
