BILL NUMBER: AB 1247	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Fletcher

                        FEBRUARY 18, 2011

   An act relating to the Public Employees' Retirement System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1247, as introduced, Fletcher. Public Employees' Retirement
System.
   The California Constitution commits the sole and exclusive
fiduciary duty over the assets of a public pension system to the
board that manages it. Existing law requires that the Board of
Administration of the Public Employees' Retirement System, its
officers, and employees discharge their duties solely in the interest
of the participants and beneficiaries of the system.
   This bill would state the intent of the Legislature to enact
legislation that implements the proposed recommendations of the
CalPERS Special Review, issued December 2010, that investigated and
addressed issues raised by the use of placement agents.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation that implements the proposed recommendations of the
CalPERS Special Review, issued December 2010, that investigated and
addressed problems raised by the use of placement agents. In this
regard, it is the intent of the Legislature to enact legislation that
addresses, among other things, the following:
   (a) Institutional risk management and oversight.
   (b) Gifts to employees and staff of the Public Employees'
Retirement System.
   (c) Employment of members of the Board of Administration of the
Public Employees' Retirement System following their separation from
employment with the system.
   (d) Responsiveness to public records request.
   (e) Internal audits.
   (f) Relationships between external managers or contractors and
placement agents.
   (g) Conflicts in investment functions.
   (h) Payment of placement agent fees from investment funds.
   (i) Expenses for meetings.