Legislation that would prevent placement agents from receiving contingency fees and require them to report gifts and lobbying activities when dealing with CalPERS and CalSTRS failed to clear a California State Assembly committee.
Board members of the $204 billion California Public Employees' Retirement System, Sacramento, were told at their monthly meeting on Wednesday that the legislation they had been pushing was not approved by the committee on Wednesday.
The legislation would also have affected the $138 billion California State Teachers' Retirement System, West Sacramento.
California State Treasurer Bill Lockyer and State Controller John Chiang, who both serve on the CalPERS board, have said they will move for the system to ban all placement agents if the legislature fails to act.
Also Wednesday, the CalPERS board approved placing Arup North America, Beacon Consulting Group and Robert H. Schaffer & Associates in the system's general consultants pool. The one-year contracts would be effective July 1, subject to final negotiations. Consultants Aon, Duff & Phelps and McKinsey already are in CalPERS' consultant list.
The board also voted to publicly censure board member Priya Sara Mathur for repeatedly failing to file personal and campaign financial disclosure statements required by California law.
Ms. Mathur's travel privileges were suspended until Dec. 1, except for travel to and from board and committee meetings and meetings with constituents. Her position as chairwoman of the fund's health benefits committee was also suspended until Dec. 1. The lifting of suspensions on that date are contingent on her paying $13,000 in fines imposed by the state Fair Political Practices Commission.
Ms. Mathur apologized to the board and promised to comply with reporting standards in the future.