Issues Update
CalPERS Board Toughens Ethics Guidelines
December 29, 2009
The CalPERS Board of Administration has strengthened ethics policies that guide how the fund is governed. At its December meeting, the 13-member Board tightened rules regulating its interaction with CalPERS staff concerning investment proposals and gave the Board President authority to discipline members whose actions violate policy. Board Members also will be required to attend annual training sessions detailing their responsibilities to fund participants and beneficiaries.
The Board’s moves followed a review of its Statement of Governance Principles that began in the fall. Among other things, the principles outline the working relationships between the Board President, Vice President, Committee Chairs, Vice Chairs, Chief Executive Officer and CalPERS staff.
Among the policies approved:
- Board members will be required to refer communication concerning existing or potential investments to CalPERS Chief Investment Officer. The guideline also calls for Board Members to refrain from advocating a course of action concerning an investment with CalPERS staff outside a Board or Committee meeting.
- The Board President will be responsible for implementing any disciplinary action against a Board member who violates Board policies. The disciplinary action could include admonishment, censure, temporary termination of travel privileges, removal as a committee chair or vice chair, or the requirement of additional ethical or fiduciary training. The Vice President is responsible for any action against the Board President.
- The Board’s Code of Ethics as well as conflict-of-interest rules will be incorporated into the Governance Principles, creating a single document.
Read the full news release.
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