CTA and the California State Teachers’ Retirement System (CalSTRS) have defeated a well-intentioned but overly restrictive measure that would have jeopardized the pension board’s ability to fulfill its duties to its members.
AB 1967, by Assembly Member Alberto Torrico (D-Torrance), would have prohibited CalSTRS and the California Public Employees’ Retirement System (CalPERS) from placing public funds in investment companies fully or partly owned by investors from foreign nations that have not fully complied with certain international treaties. This bill could have cost CalSTRS as much as $5 billion.
Boards of both pension systems have in the past used their investment influence to pressure corporations and nations to meet human rights standards.
The measure could also have prevented pension board members from fulfilling their fiduciary duties. These duties require boards to make investment decisions to benefit the system’s members and their families.
Len Feldman
