A California Assembly committee is expected to hold a hearing this month on a bill that would require all public pension plans in California to develop a policy for disclosure of placement agent payments.
The bill, introduced last week by the Committee on Public Employees, Retirement and Social Security, also would bar public pension systems in the state from entering into any agreement with a money manager that does not agree, in writing, to comply with the policy.
Placement agents also would have to disclose all campaign contributions made to any elected member of a public pension plan board in the two years before and during the time the placement agent is marketing investments to the board.
Also, sitting public plan board members would be barred from selling investments to any public retirement system in California.
The hearing is scheduled for June 26. The requirements would take effect June 30, 2010.
