State Treasurer Phil Angelides on April 2 unveiled a plan aimed at generating solid and secure investment returns for CalSTRS and CalPERS while providing $15 billion to help California rebuild its decaying infrastructure.
Dubbed "CalBuild," the proposal would allow both of the two public employee retirement systems to use up to 5% of their investments to underwrite desperately needed construction and repair for public projects. The plan, he said, would represent a "win-win for California and the retirement systems."
The proposal would help "meet infrastructure needs at the same time we are providing good solid returns for the pension funds."
The state treasurer, who is a member of the CalSTRS and CalPERS retirement boards, stressed that the plan "is designed to supplement, not replace a legislative bond package. We need both."
"I hope a [legislative bond package does move forward, and I have every faith and confidence that under Senate President Pro Tem Perata and Assembly Speaker Nunez there will be a thoughtful and reasonable package to voters this year."
Angelides pointed out that the new plan would not require legislative action, but simply the approval of the boards of the pension plans. He said the proposal is similar to ones he's previously made, including a plan to invest CalPERS and CalSTRS funds in alternative energy sources that he surfaced in 2004.
Angelides projected that the CalBuild investments would likely earn both retirement systems sound and long-term investments. He noted that a number of public retirement plans - including the Ontario Teachers Fund - are already invested in similar public projects.
The state fiscal officer said the proposal would allow Californians to reap the benefits of the infrastructure investments, rather than foreign investment firms, which trade projects in California like "commodities."