California Public Employees Retirement System (CalPERS) Board members are required to receive 24 hours of financial training every two years under a law just enacted. Gov. Jerry Brown (D) on July 18 signed into law AB1163, a measure Assemblyman Marc Levine (D-San Rafael) introduced to enhance CalPERS members’ financial expertise. Levine introduced the bill on Feb. 22, 2013.
According to Levine, the CalPERS board oversees almost $300 billion for almost 1.7 million public employees and retirees. Said Levine in a press release about his bill, “These workers, retirees and the public need a board with the expertise to make sound financial decisions that protect pensions and the taxpayers’ investment.” He added that he looks forward “to continuing the work of improving the financial standing of CalPERS.”
The measure says that the education the board members are to receive may address:
fiduciary responsibilities
ethics
pension fund investments and investment program management
actuarial matters
pension funding
benefits administration
disability evaluation
fair hearings
pension fund governance
new board member orientation
The board is to establish a way to determine the programs, training and educational sessions that qualify as board member education. It also must maintain a record of board member compliance with the policy and post an annual report on board member compliance on the system's website.
The measure is added insurance that the CalPERS Board will receive ongoing education; the Associated Press reports that the board already adopted an education policy in March that includes training for its members on CalPERS’ investment policy. According to the AP, a staff report says the training the board now requires of itself will satisfy the stipulations of the new law.
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