A CalPERS investment subcommittee on Wednesday voted to rehire incumbents Wilshire Advisors as its general investment consultant and Meketa Investment Group as its private equity, real estate, private debt and infrastructure consultants, subject to final negotiations.
In January, the $456.7 billion California Public Employees' Retirement System, Sacramento, launched an RFP for a general investment consultant, and private equity, real estate, private debt and infrastructure consultants. The incumbent consultant contracts are set to expire June 30, 2024. Wilshire is the board's private debt consultant as well as its general investment consultant. Meketa currently serves as CalPERS' private equity, real estate and infrastructure consultants.
Separately, the board on Tuesday made some changes to staff compensation, including increasing the investment staff's annual and long-term incentive plans starting July 1, the start of the pension plan's next fiscal year.
Among the changes made Tuesday by the board: the chief investment officer's annual and long-term incentives would increase to 180% of salary for hitting targets, from 100%; and the deputy CIO's annual and long-term incentives would increase to 120% of salary for hitting targets, from 80% of salary.
Separately, Danny Brown, chief of CalPERS' legislative affairs division, in a state legislation update told the board that the staff has been meeting with stakeholders and partners to "stop the bill in its current form" a bill that would require CalPERS and the $306 billion California State Teachers' Retirement System, West Sacramento, to divest from fossil fuels. Both pension fund boards oppose the bill. So far, the Senate bill has passed two Senate committees, including the Judiciary Committee on Tuesday.
"It's likely our best chance will be when it gets over to the … Assembly side," Mr. Brown said.
The staff is also checking out another state Senate bill that would prohibit state agencies including CalPERS from working with a financial institution that invests or makes loans to a company that manufactures firearms or ammunition.
"I wouldn't consider this a divestment bill, but it could have an impact on banks we contract with or deposit money with," Mr. Brown said.
The staff will analyze the impact on CalPERS later this year, he said. "Right now, unfortunately, there's no good list of which banks this bill may impact," but the staff will continue to look at that.