CalSTRS is looking into forming a 457 plan, said Sherry Reser, public information officer. Officials at the $100 billion California State Teachers Retirement System, Sacramento, are considering alternative ways of administering the plan, including creating a joint 457 plan with the $150 billion California Public Employees Retirement System, Sacramento. So far, the matter has not been scheduled on the CalSTRS boards agenda.
Separately, CalSTRS adopted a sweeping set of corporate governance reforms stemming from the Enron and Global Crossing collapses. Top priorities include the independence and qualifications of audit committee members; auditor disclosure; accounting standards; disclosure of executive compensation; and reforms of deferred compensation and defined contribution plans. Gary Lynes, CalSTRS chairman, said the system will team with other pension funds, regulatory agencies and legislative bodies to push for improving corporate governance practices.
CalPERS recently adopted a similar set of proposed reforms.