California funds sue WorldCom over bonds
PASADENA, Calif. - CalPERS, CalSTRS and the Los Angeles County Employees Retirement Association filed a joint lawsuit in Los Angeles County Superior Court against WorldCom Inc., claiming the firm misled investors about its financial health in a May 2001 bond offering.
The $149 billion California Public Employees' Retirement System, Sacramento, seeks to recover $268 million in losses from the bond issue. The $100 billion California State Teachers' Retirement System, Sacramento, wants to recover $24.5 million in losses; and the $26 billion LACERA , Pasadena, claims it lost $25.9 million.
WorldCom officials did not respond to inquiries by press time.
2 in Congress urge Bush to protect 401(k) assets
WASHINGTON - Sen. Edward M. Kennedy, D-Mass., and Rep. George Miller, D-Calif., asked President Bush to act now to protect 401(k) money, instead of waiting for Congress to enact legislation. Mr. Bush was asked to use existing regulatory authority under federal pension law to require plan sponsors to appoint independent fiduciaries acting solely in the interest of participants; eliminate employer-imposed restrictions on moving money if a company is failing; and ensure employers use independent financial professionals to offer investment advice.
The request, made in a letter to Mr. Bush, also recommends that all legal means be used to ensure the assets of WorldCom and its top executives are preserved for compensating participants who lost their retirement savings if the company declares bankruptcy.
2 more officials leave CalPERS
SACRAMENTO, Calif. - James H. Gomez, deputy executive officer, and Kayla Gillan, general counsel, announced they will be leaving the $149 billion California Public Employees' Retirement System.
Mr. Gomez will become president and CEO of the California Association of Health Facilities. Ms. Gillan was named vice president of Independent Fiduciary Services, which provides fiduciary services to public and private trusts.
Pat Macht, information officer at CalPERS, said the system has not yet made plans to seek replacements for the two.