On. Nov. 4, CalPERS CEO Marcie Frost sent a letter to the US Securities and Exchange Commission asking that it not move forward with plans to scrap a rule that has prevented investment managers who make political contributions from simultaneously advising public pension funds like CalPERS. The letter warns that the recission of this rule could lead to an erosion of governance and an increase in corruption in the pension industry.
“Ultimately, the integrity of public pension investment decisions must remain paramount,” Frost wrote. “Public retirement systems manage assets on behalf of millions of workers and retirees who depend on those funds to deliver promised benefits. Maintaining a clear federal standard helps protect beneficiaries, supports fair competition, and reinforces public confidence in the stewardship of retirement assets.”
Read the full letter.