The CalPERS Board met Monday, March 13, through Wednesday, March 15, in person at our Sacramento Headquarters.
A recording of all the public meetings is posted on the CalPERS YouTube channel. Here are some highlights from this month’s meetings.
Monday’s Meeting: Investment Committee
Proxy Voting and Corporate Engagements Update
The committee heard an update on Proxy Voting and Corporate Engagements work streams. The program seeks good governance practices to ensure that CalPERS’ funds are being used for the benefit of our members to produce sustainable, long-term, risk-adjusted returns to support payment of pension benefits. The committee was updated with data from the 2022 proxy voting season, including:
- 88% of companies we engaged since July 2017 have since added at least one diverse director to their boards.
- We voted against 95 directors at 26 Climate Action 100+ companies for climate risk oversight.
- 48 companies adopted or committed to adopt proxy access per our request.
Read the agenda item (PDF) or view the Proxy Voting & Corporate Engagement Update presentation (PDF) to learn more and review the full data.
Tuesday’s Meeting: Pension & Health Benefits Committee
Pharmacy Benefits Manager Contract
The board voted to authorize extending the Pharmacy Benefit Manager (PBM) contract with OptumRx for one additional year to run January 1, 2025, through December 31, 2025. Check out the agenda item (PDF) for more information.
Health Maintenance Organization Solicitation Intent to Award
The board approved the 2024-28 Health Maintenance Organization (HMO) Health Plan solicitation. The solicitation seeks to implement key strategies to ensure members have access to high-quality health care that is equitable and affordable. The board approved service area expansions for Blue Shield Access+ EPO, Kaiser Senior Advantage Summit, UnitedHealthcare Alliance and Harmony HMOs, and Western Health Advantage MyCare Select Medicare Advantage, among other health plan proposals.
To view all the health plan proposals and our program recommendations, view the agenda item (PDF) or the Health Maintenance Organization Solicitation Intent to Award presentation (PDF). You can also learn more from the Service Area Maps for 2024 (PDF).
Health Benefit Design Proposals for the 2024 Plan Year
The board approved benefit design changes for the 2024 plan year, which include adding additional supplemental benefits to Anthem’s Medicare Advantage plan and adjusting UHC’s Medicare Advantage’s emergency department copay. Access the agenda item (PDF) or the Health Benefit Design Proposals for 2024 Plan Year presentation (PDF) for more information and next steps.
Wednesday’s Meeting: Board of Administration
Senate Bill 252 – Divestment From Fossil Fuel Companies
The board opposed Senate Bill (SB) 252, which would require that state agencies like CalPERS make no new investments in fossil fuel companies and divest existing investments in fossil fuel companies by July 30, 2030. The bill would also require CalPERS to submit a report on fossil fuel holdings to the Governor and Legislature once annually beginning February 25, 2025. This would cause CalPERS’ investments to lose diversity, resulting in a less sustainable fund.
While CalPERS does recognize the risks posed to the environment by climate change, we believe that divestment is not the ultimate solution to the problem and continue to work toward net zero greenhouse gas emissions via advocacy, engagement, integration and investments, and partnerships. Review the agenda item (PDF) for our analysis on SB 252.
Next Board Meeting
The board will meet next April 17-18, 2023. View the Board Meetings Calendar for the full schedule.