CalPERS today took a step toward restricting private equity investments in companies that shift public-sector jobs to the private sector. A panel of union officials warned the investment committee of the $145 billion California Public Employees' Retirement System, Sacramento, that such investments threaten the jobs of CalPERS members, pose excessive investment risks and hurt the plan's contribution base. The committee passed a motion asking Pension Consulting Alliance to develop a policy recommendation to be brought back to the committee within the next two months.
While most committee members strongly supported the motion, California state Treasurer Phil Angelides urged caution. "One person's privitazation policy may be another person's progressive public policy," he said.
