COMMITTEE IN THE ASSEMBLY PUBLIC
EMPLOYMENT RETURN COMMITTEE WILL
COME TO ORDER GOOD MORNING IN
RESPONSE THE COPA NINETY NUMBERS
SEEM TO PROTECT THE PUBLIC
LEGISLATORS AND EMPLOYEES- WE
MUST LIMIT NONESSENTIAL GATHERS
IN HERE TO SOCIAL JUST SEEN A
FACE COVERING GUIDELINES- AS
CURRENTLY UPDATED I WILL ADD. IN
COMPLIANCE WITH THOSE ORDERS THE
SENATE HAS MADE NECESSARY
ADJUSTMENTS NORMAL PRACTICES IN
ORDER TO ENSURE THAT THE PUBLIC
CONTINUES OF AXIS THE
LEGISLATIVE PROCESS. WE'RE
HOLDING THIS HEARING IN CAPELIN
SPECIFICALLY HERE IN THE SENATE
CHAMBER TO ALLOW FOR SOCIAL
DISTANCING. AMONG OUR COMMITTEE
MEMBERS IN THE SENATE CHAMBER.
UP WITH ME OUR SERVICES SENATE
LABOR. A PUBLIC EMPLOYMENT
RETIREMENT COMMITTEE MEMBERS-
SENATOR WROTE SENATOR OCHO BOGER
VICE CHAIR I BELIEVE IS HERE
WILL BE HERE SHORTLY- SENATOR
MARIA ELENA DURAZO. IS EXPECTED
TO BE WITH US HERE IN THE ROOM-
IN CENTER EARLIER IN SENATOR
NEWMAN- I BELIEVE WILL BE
ATTENDING- THE ASSEMBLY PUBLIC
WOMEN RETIREMENT COMMITTEE
MEMBERS- ASSEMBLY MEMBER. AND
CHAIR- COOPER. ASSEMBLY MEMBER-
RANDY VOGEL VICE CHAIR SOME
MEMBER LISA CALDERONE. ASSEMBLY
MEMBER CAN COOLIE ASSUMING THERE
PATRICK O'DONNELL IS SOME
REMEMBER KELLY SAY R. TWO. WE
ALSO HAVE A PRESENCE IN
CALIFORNIA ACTUARIAL ADVISORY
PANEL THE CALIFORNIA PUBLIC
EMPLOYEES RETIREMENT SYSTEM THE
CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM. AND THE STATE
ASSOCIATION OF COUNTY RETIREMENT
SYSTEMS. WHO ARE PARTICIPATING
REMOTELY. FOR REMOTE PARTS
PLEASE MUTE PHONES OR COMPUTERS
THIS WILL GREATLY AID IN
ELIMINATING THE CAUSTIC
FEEDBACK. I. **** EVERY TIME YOU
WOULD LIKE ME TO RECOGNIZE YOU
PLEASE USE THE RAISE YOUR HAND
FEATURE IN THE PROGRAM EACH TIME
I RECOGNIZE YOU TO SPEAK A POP
UP WINDOW WILL APPEAR ASKING IF
YOU'D LIKE TO ON MUTE. PLEASE
SELECT ON MUTE BEFORE YOU BEGIN
SPEAKING R. I. T. PERSONNEL WILL
PUT YOU BACK ON MUTE WHEN YOU
ARE DONE WANT TO RECOGNIZE YOU
TO SPEAK PLEASE MAKE SURE WE CAN
SEE YOU ON THE SCREEN STATE YOUR
NAME AND THEN PROCEED TO ADDRESS
THE COMMITTEE. T ALLOW PUBLIC
ASSET ACCESS TO THIS HEARING
WE'VE ADMITTED MEMBERS OF THE
PUBLIC IN THE SENATE GALLERY TO
THE EXTENT. THE SOCIAL
DISTANCING REQUIREMENTS ALLOW.
IT WILL ALSO BE USING THE TOLL
COVER SERVICE FOR THOSE
INDIVIDUALS WHO WAS TESTIFIED
TODAY. FOR ALL INDIVIDUALS
WISHING TO PROVIDE PUBLIC
COMMENT WE HAVE POSTED. THE
PARTICIPANT TOLL FREE NUMBER AND
ACCESS CODE. IN OUR COMMITTEE
WEBSITE. DISPLAYED ON THE
SCREEN- AND I WILL ANNOUNCE IT
NOW IF I CAN FIND IT. IT IS
844-291-4185 AGAIN THE NUMBERS
844-291-4185 THE ACCESS CODE IS. FOUR SIX SIX THREE NINE SIX
EIGHT AGAIN FOUR SIX SIX THREE
NINE SIX EIGHT. FOR DETAILED
INSTRUCTIONS ON ON HOW THE
TELECOM SYSTEM WORKS PLEASE
REFER TO THE SENATE FOR
COMMITTEE WEBSITE WHO WILL HEAR
THE WITNESSES ON THE AGENDA
PRIOR TO TAKING ANY PUBLIC
COMMENT ONCE WE HAVE HEARD ALL
THE WITNESSES WILL HAVE A PUBLIC
COMMENT PERIOD FOR THOSE WHO
WISH TO COMMENT ON THE TOPICS.
ON TODAY'S AGENDA PLEASE NOTE
THAT IN ORDER FOR US TO HEAR YOU
CLEARLY- AS NOTED BEFORE TO
AVOID ACCUSED ACOUSTIC FEEDBACK.
MUTE THE DEVICE ON WHICH YOU'RE
WATCHING THE HEARING PRIOR TO
GIVING TESTIMONY OVER THE PHONE
THIS IS VERY IMPORTANT-
OTHERWISE WE WON'T BE ABLE TO
HEAR FROM YOU. WE THANK YOU FOR
YOUR PATIENCE I WILL MAINTAIN
DECORUM DURING THE HEARING AS IS
CUSTOMARY AND USUAL IN THE ORDER
STUFF TO MUTE OR REMOVED FROM
THE REMOTE MEETING SERVICE
ANYONE WHO DISRUPTS THESE
PROCEEDINGS. ONE FINAL
PROCEDURAL NOTE WE DO HAVE A
HARD STOP OF TWELVE THIRTY PM IN
ORDER TO ALLOW SUFFICIENT TIME
CENTER CENTER IS A CHAMBER. TO
ANOTHER COMMITTEE CAN COMMENCE
AT ONE PM. I MEAN IT JUST TIMER
INTERRUPT SPEAKERS AS NECESSARY
A PARTICULARLY DURING THE
QUESTION AND ANSWER PERIOD TO
COMPLY WITH THE MANDATE TO END
AT TWELVE THIRTY- IF WE DO NOT
HAVE TIME FOR COMMENTS TODAY
PLEASE PROVIDE THEM IN. WRITTEN
FORM. AT THE CON AS A CONTACT
INFORMATION ON OUR WEBSITE- WILL
CLEARLY INDICATE. LET ME MAKE
SOME INITIAL OPENING REMARKS AND
LET ME JUST SAW ALSO SAY JUST
AS- AS A POINT OF ORDER- AFTER I
MAKE MY- OWN OPENING REMARKS- I
AM GOING TO- TURN THE CHAIR
OVER. TO SHARE COOPER- FOR
PURITY WILL MAKE HIS REMARKS- I
WILL RETURN- I WILL BE
PHYSICALLY ABSENT FOR A FEW
MINUTES- THE CAST SOME VOTES ON
COAL IN ANOTHER COMMITTEE THAT
I'M A MEMBER OF- SO WITH THAT-
LET ME SEE THAT- WE AND LET ME
KNOW ONCE AT CENTER WHERE IT IS
HERE I MAY HAVE- INDICATED THAT
HE WOULD BE. SHOWING UP AFTER HE
HAD ALREADY ARRIVED SO I DID A
FIGURE THAT OUT SENATOR WORD
THANK YOU- SO NO WE DON'T ASSUME
THE PROCEDURAL DETAILS IN BEFORE
WE HEAR FROM OUR PANELISTS- LET
ME WELCOME MY FELLOW SENATORS ON
THE COMMITTEE AND OUR COLLEAGUES
FROM THE ASSEMBLY PURSE
COMMITTEE- WELCOME TO ALL OF
YOU- AND- IT LET ME ALSO THEN
IMMEDIATELY. MOVE INTO- SOME
BROADER KNOWLEDGE MINTS- AS-
NOTE- BY THE GOVERNOR LAST NIGHT
NOTED BY I SURE EVERY PERSON
WHO'S WALKING YOU THIS CAPITAL-
OVER THE PAST. TEN DAYS- WE ARE
MEETING UNDER EXTRAORDINARY
INTERNATIONAL CIRCUMSTANCES
WHICH HAVE SOME RELEVANCE TO THE
PROCEEDINGS TODAY RUSSIA'S
INVASION OF UKRAINE SHOCKS THE
CONSCIENCE OF ALL FREE PEOPLE
AND WE CONDEMN WITHOUT
RESERVATION WE STAND WITH THE
PEOPLE OF UKRAINE IN RESISTING
THE HORRIBLE QUESTION ON LEASE
AGAINST THEM WE ALSO STAND IN
AWE AND ADMIRATION OF THEIR
INCREDIBLE. INDETERMINATE
RESISTANCE INSPIRE US TO BRING
OUR GREAT STATE'S ECONOMIC
MIGHT. TO THEIR ASSISTANCE TO
MAKE RUSHES. A GOVERNMENT. ITS
DICTATOR AND IT'S ALL DARK SO TO
PAY DEARLY FOR INFLICTING DEATH
AND DESTRUCTION ON A FREE
DEMOCRATIC SOVEREIGN PEOPLE AND
FOR THREATENING OUR VALUES OF
PEACE PROSPERITY DEMOCRACY AND
FREEDOM FOR ALL. THAT'S WHY
SENATOR MCGUIRE AND I ALONG WITH
NEARLY SIXTY WERE LOTS OF CALLS
FROM BOTH HOUSES HAVE AUTHORED
SB THIRTEEN TWENTY EIGHT TO
PROHIBIT CALIFORNIA PUBLIC
AGENCIES FROM INVESTING OR
CONTRACTING WITH ANY COMPANY
THAT DOES BUSINESS. WITH RUSSIA
THE COURSE THAT BILL. WILL BE
HEARD AT A LATER DATE IT'S- NOT
ON THE TABLE TODAY- BUT I WANTED
TO NOTE THAT FOR CONTEXT
BECAUSE- OF- THE RELEVANCE.
DIRECTOR INDIRECT HAS TO THE
HEARING TODAY. EVEN IN THE MIDST
OF THAT INTERNATIONAL CONFLICT
OF COURSE- THE IMPORTANT
BUSINESS TODAY IS THAT WE MUST
CONTINUE TO DO ROUTINE WORK THAT
WORK. IS IMPORTANT TVS WORKING
BUILDING SECURING A DEMOCRATIC
SOCIETY OF TENDING TO TODAY'S
PRIORITIES WHILE PLANNING FOR
TOMORROW. IN A PLANNING THE
SEEDS OR PROVIDE US WITH THE
RESOURCES TO CARE FOR FUTURE
NEEDS AND THE NEEDS OF THOSE WHO
DEPEND ON US TO GET THIS RIGHT.
TO THAT END WE ARE HERE TO FOCUS
ON THE CONDITION OF OUR PUBLIC
PENSION FUNDS WE'RE BLESSED TO
HAVE SOME LARGEST PENSION
SYSTEMS IN THE WORLD. AND WE
APPRECIATE THAT THE
REPRESENTATIVES ARE HERE TODAY
TO SHARE WITH US INFORMATION
ABOUT THEIR CHALLENGES IN
CARRYING OUT THEIR MISSION. AND
THE OPPORTUNITIES BY WHICH THEY
SEEK TO ENSURE THAT THE SEEDS
PLANTED TODAY. WILL PAY OFF IN
THE NEAR. MEDIUM AND LONG TERM.
WELL FOR HEAR FROM REPRESENT OF
THE CALIFORNIA. FUZZY PANEL CAP.
WE WILL PROVIDE- WHO PROVIDE
CAPS INDEPENDENT ASSESSMENT
UNDER DIFFERENT ECONOMIC
SCENARIOS AS REQUIRED BY LAW- OF
THE ACTUARIAL CONDITION. OF OUR
LARGEST SYSTEM THE CALIFORNIA
PUBLIC PLAYED THEM PLEASE
RETIREMENT SYSTEM- CALPERS AS WE
KNOW IT. OFFICIALS FROM CALPERS
THE SEGMENT ON ALL MEDIA COUNTY
RETIREMENT SYSTEMS REPRESENT THE
STATE ASSOCIATION OF COUNTY
RETIREMENT SYSTEMS. IN THE
CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM WILL FOLLOW
THE CAP PRESENTATION. WE
UNFORTUNATELY BENEFITED FROM
PROF POSITIVE MARKET RETURNS IN
THE LAST FEW YEARS. HOWEVER
TODAY WERE ASKING THE PANELISTS
TO ADDRESS CONCERNS REGARDING-
MANY OF THAT CANNOT MANY
ECONOMIC CONDITIONS THAT.
CONFRONT US INCLUDING THE THREAT
OF INFLATION- I WOULD SAY MORE
THE A THREAT THIS POINT THE
EXPECTED CHANGE IN THE FEDERAL
RESERVE MONETARY POLICY IN THE
POSSIBILITY OF ADVERSE ECONOMIC
CONDITIONS GOING FORWARD. THESE
ISSUES POSE SIGNIFICANT
CHALLENGES TO THE VALUE PENSION
PURCHASING POWER TO THE
CONDITIONS SYSTEMS FUNDING SAYS
THAT THE POTENTIAL EFFECT. ON
COST TO PUBLIC EMPLOYERS PUBLIC
EMPLOYEES AND TAXPAYERS
ADDITIONALLY LOOK FORTY HEARING.
HOW THE SYSTEMS ARE CREATING
INNOVATIVE WAYS TO TAKE
ADVANTAGE OF ANY POTENTIAL
OPPORTUNITIES TO ENSURE THAT WE
CONTINUE TO HAVE THE RESOURCES.
THE FUND PEOPLE'S PENSIONS AND
TO DO SO IN A WAY THAT ACCORDS
WITH OUR STATE'S VALUES. NOW MR
COOPER- I THINK YOU'D LIKE TO
MAKE SOME OPENING REMARKS OF
TURNED OVER TO YOU. THANK YOU. I
WANNA THANK MY COACH HERE'S THE
CORTESE AND THE STAFF OF BOTH
COMMITEES WHO PUT IN A
TREMENDOUS AMOUNT OF TIME AND
EFFORT. TO PUT THIS THING
TOGETHER FOR US TODAY. WE'RE
GOING TO BE DISCUSSING A NUMBER
OF IMPORTANT MATTERS REGARDING
PUBLIC EMPLOYEE RETIREMENT. THAT
ARE OF INTEREST TO NOT ONLY TO
THE TWO COMMITTEES HERE TODAY.
BUT ALSO THOSE PUBLIC EMPLOYEES
. PUBLIC EMPLOYERS IN THE PUBLIC
WILL YOU LIKE TO DISCUSS THE
TOPICS OF THE VESTMENT FROM
RUSSIA AND FOSSIL FUELS THAT
GARNERED LOT OF ATTENTION
RECENTLY I WANT TO CAUTION
EVERYONE INVOLVED IN THIS
HEARING TODAY INCLUDING THOSE
WHO WISH TO SPEAK DURING PUBLIC
COMMENT THAT WE'RE NOT HERE TO
DISCUSS THE SPECIFICS OF ANY
PENDING BILLS ON THESE TOPICS
BECAUSE IT WOULD BE
INAPPROPRIATE A BREACH OF RULES
OF THE ASSEMBLY SENATE. ENJOY
RULES. WE HAVE A NUMBER OF SUB
TOPICS TO COVER AND COMMITTEE
STAFF WILL BE MONITORING THE
TIME TO STAY ON TRACK TO GET
THROUGH THE AGENDA. WITH THE
TIME THAT WE HAVE THIS ROOM
TODAY. HAVING SAID THAT IN THE
WINTER TIME THE OTHER MEMBERS OF
THE COMMITTEE HAVE TIME TO POSE
YOUR QUESTIONS TO THE PANELISTS.
DURING THIS HEARING I'M GOING TO
ASK MONEY UP FRONT. SO YOU'LL BE
ABLE TO RESPOND TO THEM DURING
THEIR PRESENTATIONS. FINALLY FOR
THE ACTUARIAL ADVISORY PANEL
PERIODICALLY WE HEAR QUESTIONS
OR CONCERNS. REGARDING THE TOTAL
UNFUNDED OR UNDERFUNDED
LIABILITY OF CALPERS CAL STIRS.
HERBAL SYSTEMS. CAN PROVIDE SOME
CONTEXT OR INFORMATION. AS TO
WHAT THESE NUMBERS ACTUALLY
MEAN. UNDER WHAT CIRCUMSTANCES
IF ANY. THOSE TOTAL FIGURES
MAYBE IT MUST BE PAID IN FULL AT
ANY GIVEN POINT IN TIME. FOR
CALPERS THIRTY SEVEN ECO SYSTEMS
AND CAL STIRS REGARDING YOUR
INVESTMENTS CAN YOU TELL US HOW
MUCH WAS LOST BY YOUR SYSTEMS IN
ACTUAL INVESTMENT LOSSES OR AN
OPPORTUNITY COST OR LOSSES. THAT
RESULTED FROM THE PENSION FUNDS
SELF DIRECTED INVESTMENT OR
LEGISLATIVE INVESTMENT MANDATES
AND HOW THE SYSTEM MAKES APPLE'S
LOSSES. WAS SORT OF CHILLING
EFFECT IS LEGISLATIVE VESTMENT
MANDATES HAVE ON OTHER
INVESTMENT OPPORTUNITIES. AND
WHAT MIGHT YOUR SYSTEMS FOR THE
STATUS BE TODAY HAD THOSE
VESTMENTS ACTIONS NOT OCCURRED.
AS INSTITUTIONAL INVESTORS
REGARDING SHAREHOLDER ACTIVITIES
PLEASE TELL US WHAT IT MEANS TO
BE A SHAREHOLDER. WHAT'S
IMPORTANT TO MANNY SHAREHOLDER.
AND PROVIDE EXAMPLE OR TWO OF
WHEN YOUR SYSTEMUSES POSITION
TO BRING ABOUT THE DESIRED
CHANGE. ALSO IF YOU CAN WILL BE
HELPFUL TO KNOW WHAT YOUR
CURRENT EFFORTS ARE REGARDING
ENGAGEMENT TO BRING ABOUT
DESIRED CHANGE. HOW DO YOUR
SYSTEM'S EASE THEIR
ENVIRONMENTAL SOCIAL AND
GOVERNANCE POLICIES TO GUIDE
EVALUATE INVESTMENT DECISIONS AN
ACTUAL INVESTMENTS. AS A
LEGISLATURE WE CAN DO TO ASSIST
EXCUSE ME WHAT CAN WE DO TO
ASSIST YOU IN A WAY THAT HELPS
YOU CONTINUE TO MEET YOUR
FIDUCIARY OBLIGATIONS AND ANITA
PUBLIC EMPLOYERS PUBLIC
EMPLOYEES AND RETIREES. UNLESS
THERE'S LIKE A LOT LIKE REPEAT
THE QUESTIONS IF NECESSARY IF
NOT LOOK FORTY HEARING THIS FROM
YOU INTERNET BACK OVER TO MY
CULTURE CENTER CORTESE. I
BELIEVE HE LEFT SO GO AHEAD AND
MOVE ON TO OUR FIRST PANEL. THAT
COULD BE THE ACTUAL ADVISORY
PANEL. THEIR FIRST FIGURES-
DAVID TOMORROW A DEPUTY
ASSISTANT ACTUARY CALIFORNIA
STATE TEACHERS RETIREMENT SYSTEM. GOOD MORNING EVERYONE I'M VERY
HAPPY TO BE HERE THAT YOU HAVE A
SLIDE DECK APPOINTMENT SURE.
PERFECT YOU SHOULD ALWAYS SEE
THAT RIGHT NOW THANK YOU VERY
MUCH SO I AND I'M DAVID
LETTERMAN AND MEMBER OF THE I
NEED THE SYSTEM ACTUALLY TELLS
THE TRUTH BUT I'M REALLY HERE
TODAY AS THE REPRESENTATIVE FOR
THE CALIFORNIA ACTUALLY BUYS A
WEEK PANEL. I WANT TO GIVE YOU A
LITTLE BIT OF BACKGROUND ON THE
ON THE PANEL IN THAT CAP THE CAP
WAS ESTABLISHED IN TWO THOUSAND
AND EIGHT BY- SENATE BILL ELEVEN
TWENTY THREE. WE ARE AN EIGHT
MEMBER PANEL HOUSE IN THE STATE
COMPTROLLER'S OFFICE AT PRESENT
THE GOVERNMENT CODE SECTION
SEVENTY FIVE OR SEVEN POINT TWO
THE PANEL SHALL PROVIDE
IMPARTIAL INDEPENDENT
INFORMATION ON PENSIONS AND
OTHER POST EMPLOYMENT BENEFITS
AND BEST PRACTICES. TO PUBLIC
AGENCIES. FAT EVERY MEMBER OF
THE PANEL IS A- BY ENTITY. AND
CALLOUS TOWARDS REPRESENTATIVES
ON A CAT. I HAVE LISTED HERE ALL
OF THE ENTITIES AND INCLUDED AT
THE BOTTOM OF THE SLIDE AND HIDE
A HYPERLINK. IF YOU WANTED TO
SEE WHO THE EIGHT ANIL MEMBERS
ARE- EACH PANELS YOU GENERALLY
SERVES A TERM OF THREE YEARS.
FIVE SO THE CABINS WE'VE BEEN IN
EXISTENCE FOR SEVERAL YEARS
ALTHOUGH WE CANNOT IMPOSE
REQUIREMENTS FOR ACTUAL WORK IN
CALIFORNIA WE HAVE OVER THE
YEARS YOU SHOULD SEVERAL
GUIDANCE DOCUMENTS IN THE MAIL
WHEN I WANT TO HIGHLIGHT IS THE
FIRST ONE IS THIS IS A GUIDANCE
ON SOMETHING POLICIES FOR
PENSION PLANS AND OPEN IT IN
CALIFORNIA AND SINCE WE HAVE
ISSUED A DOCUMENT IN CALIFORNIA
ALMOST TEN YEARS AGO IT HAS BEEN
ADOPTED AT THE NATIONAL LEVEL.
BY THE- CONFERENCES CAN
ACTIVITIES SO THOSE DOCUMENTS
HAVE INCLUDED THE HYPERLINK HERE
ARE AVAILABLE ON THE CAP WEBSITE
. THE MAIN REASON I'M HERE TODAY
IS- DARN CODE SECTION TWO ZERO
TWO TWO NINE. THE DATA SECTION
CODE REQUIRES CALTRANS ADELIE
PROVIDE CERTAIN INFORMATION
RELATED TO PENSION COSTS FOR
STATE EMPLOYEES SPECIFICALLY
REQUIRES CALPERS TO DISCLOSE AND
WILL LEAD THE LIABILITIES AND
CONTRIBUTION RATES FOR THE STATE
EMPLOYEES. F. ONTO AN INVESTMENT
RETURN ASSUMPTION THAT IS 2%
HIGHER AND 2% LOWER THAN
CURRENTLY ISSUE. AND IT ALSO
REQUIRES CALPERS TO DISCLOSE
WHAT THE CONTRIBUTION RATES
WOULD BE FOR THE STATE PLANS IF
THE UNFUNDED LIABILITY WAS PAID
DOWN OVER A PERIOD CALLED THE
AVERAGE REMAINING SERVICE
PERIOD. THIS IS BASICALLY IF YOU
LOOK AT THE STATE EMPLOYEES
TODAY HOW MANY YEARS ARE THEY
EXPECTED TO WORK ON AVERAGE FOR
THE STATE THAT'S WHAT THE LAW
SAYS THAT CALPERS IS REQUIRED TO
DISCLOSE AND ALSO RELATED
CALPERS AS SATISFIED THIS
REQUIREMENT EVERY SINGLE. YEAR
SINCE IT'S BEEN ADDED TO
STATUTE. NO NOT A ROLE TODAY IS
LOOK AT GOVERNMENT SIX TWO DO
NOT. IT REQUIRES A- FROM THE
CATS. TO COME TO THIS JOINT
HEARING AND EXPLAIN THE ROLE
PLAYED BY THE INVESTMENT RETURN
ASSUMPTION. AND THE AMORTIZATION
PERIOD IN THE CALCULATION THE
CONSTITUTION WHICH- TO DESCRIBE
THE CONSEQUENCES TO FUTURE STATE
BUDGETS IF THE INVESTMENT RETURN
ASSUMPTION IS NOT RELIANCE. AND
TO ALSO REPORT WAITER THE
CALPERS BOARD SUMMER TRANSITION
PERIOD EXCEEDED. THE AVERAGE
REMAINING SERVICE. EMPLOYEES
COVERED BY THE CONSTITUTION
THAT'S WHAT SECTION TWO OH TWO
TWO NINE SIX. SO LET'S TALK
ABOUT FIRST THE ROLE PLAYED BY
THE INVESTMENT RETURN
ASSUMPTIONS SO. I LIKE THIS
PICTURE BECAUSE YOU THINK ABOUT.
HOW YOU FUND PENSION BENEFITS A
PENSION PLAN WILL FIRST CONNECT
CONTRIBUTIONS FROM MEMBERS AND
EMPLOYERS AND THEN THE- MISSIONS
ARE INVESTORS. AND INVESTMENT
RETURN THAT YOU. TURN ON KINDS
IN SIX IN AND ALL I BEHIND SON
BENCH FUNDS IS TO OVERTIME- OVER
THE LONG TERM TO TRY TO KEEP
THIS IMBALANCE YOU CAN KIND OF
SEE IF INVESTMENT RETURNS END UP
BEING LESS THAN EXPECTED OR
LOWER. THEN THE ONLY WAY TO KEEP
THIS AND TWO BALANCES BY
COLLECTING MORE CONTRIBUTIONS
AND VICE VERSA IF INVESTMENT
RETURNS ARE HIGHER THAN
CONTRIBUTIONS CAN BE REDUCED.
JUST TO HELP YOU SEE HOW
IMPORTANT INVESTMENT BECOMES
ARTS YOU LOOK AT MOST PENSION
FUND IN CALIFORNIA AND YOU ASK
YOURSELF. FOR EVERY DOLLAR IN
BENEFITS IF HE PAID TODAY HOW
MUCH COMES FROM INVESTMENT
RETURNS IF YOU LOOK AT MOST
PENSION FUNDS IN CALIFORNIA THAT
ANSWER IS GOING TO BE AROUND.
SIXTY CENTS FOR EVERY DOLLAR.
BUT SO SINCE. RETURN IS WHO AT
INVESTMENT RETURN ASSUMPTION
WHAT I WANTED TO SHOW YOU IT'S
JUST IT'S A SERVICE THAT'S
RELEASED EVERY YEAR. BY NASA AND
THE NATIONAL ASSOCIATION OF
STATE RETIREMENT ADMINISTRATORS
IT'S A BASIC CHART. BUT ALL I
WANT YOU TO FOCUS ON IS THAT
MIDDLE MINDED MEDIA. THIS SHOWS
YOU FOR EVERY PUBLIC LANDS IN
THE UNITED STATES. WHAT WAS
THERE AS SOON INVESTMENT RETURNS
FOR THE LAST TWENTY YEARS AND
ALL I WANNA HIGHLIGHT HERE IS
HOW IT HAS. CHANGED OVER TIME.
BACK IN TWO THOUSAND AND ONE
DIDN'T MEDIA WAS 8% AND IF YOU
LOOK IN CALIFORNIA AT THAT TIME
YOU WOULD HAVE SEEN THAT MOST
PUBLIC PLANS IN CALIFORNIA.
WE'RE ASSUMING AROUND 8% AS
THEIR INVESTMENT RETURN
ASSUMPTION. FAST FORWARDING TO
TODAY THE MEDIAN IS NOW 7% IN
THE UNITED STATES AND IF YOU
LOOK IN CALIFORNIA AGAIN. YOU'RE
GOING TO FIND OUT THAT MOST
PUBLIC PLANS ALL EITHER USING
SEVEN PERCENT. OR SOMETHING MORE
. INSTEAD TO CALGARY WHICH WE TO
TALK TODAY. LAST NIGHT. DEKALB
BOARD REVIEW ITS INVESTMENT
RETURN ASSUMPTION AND MADE A
DECISION TO LOWER RATES FROM
SEVEN TO SIX POINT 8% NOW WHAT
THAT MEANS IS NOW WHEN CHILD
INDUSTRY WHICH ONE CALPERS WILL.
AN ISSUE. IN OUR AT S. AS THEIR
FUNDING LEVELS. THEIR FUNDED
STATUS AND DETERMINE THE
CONTRIBUTION RATES THEY'RE GOING
TO ISSUE ON THAT WHERE THE LONG
TERM THEY ARE GOING TO EARN SIX
POINT 8% ON THEIR INVESTMENTS
NOW WHAT THAT MEANS IS IF.
CALPERS WORK TO EARN LESS THAN
SIX POINT EIGHT PERCENT. IN
FUTURE CONTRIBUTIONS ARE GONNA
HAVE TO BE HIGHER THAN WHAT
CALPERS IS CURRENTLY PROJECTING
AND VICE VERSA IF CALPERS IS
ABLE TO EARN MORE THAN SIX POINT
EIGHT PERCENT. IN FUTURE
CONTRIBUTIONS WILL BE LOWER THAN
WHAT CALPERS IS CURRENTLY
PROJECTING SO- AND THAT IS FOR
EVERY PENSION FUND IF THEY ARE
ON MORNING WOULD BE. OR CALL.
WILL BE ABLE TO LOWERED AND
VERSA. BUT CALPERS DID A
CURRENTLY ASSUMES POINT EIGHT
PER. NOW THE I'M ALSO SUPPOSED
TO TALK TO YOU ABOUT THE ROLE
PLAYED BY THE ADVERTISING SHOULD
BE- THEN WHEN YOU HEAR OUR
TAXATION PERIOD JUST THINK
ABOUT. AS AN INDIVIDUAL YOU'RE
TRYING TO GO GET A MORTGAGE AND-
YOU HAVE TO DECIDE BETWEEN MOST
OF THE TIME BETWEEN FIFTEEN AND
THIRTY YEARS SO. CALPERS AT JUST
A FEW YEARS AGO AND MADE THE
DECISION BARE BOARDS VOTED TO
LOWER THEIR AMORTIZE ASIANS.
FROM WHAT USED TO BE A THIRTY
YEAR AMORTIZATION. TO NOW A
TWENTY YEAR AMORTIZATION.
UNFUNDED LIABILITY AT THAT
CHANGE BECAME EFFECTIVE IN
TWENTY TWENTY ONE. AND AGAIN IF
YOU THINK ABOUT IT I'M
ORGANIZATION HERE THAN YOU.
THINK ABOUT A MORTGAGE THE SAME
PRINCIPLE APPLIES. HERE WHEN
EIGHTY. WHEN IT SIX ADOPTS H.
PERIOD TO PAY DOWN THE UNFUNDED
LIABILITY IT'S REALLY MEANS
HARDCORE. IN A SHORT TERM BUT
LOBO TOTAL LONGER YOU PAY LESS
IN INTEREST THE SAME WAY YOU
WOULD DO IF YOU PICK A FIFTEEN
YEAR MORTGAGE VERSUS THE THIRTY
YEAR MORTGAGE IT ALSO MEANS THAT
CURRENT TAXPAYERS WOULD PAY MORE
TO WORK THE CURRENT UNFUNDED
LIABILITY. AND LONGER BEARD SAME
THING WOULD HAVE LOWER
CONTRIBUTION RATES WOULD YOU PAY
THEM FOR A LONGER PERIOD OF
TIME. WHICH MEANS HIRING TOOL
COSTS OVER THE LONG TERM. AND IN
THIS CASE IT WILL NEED TO
BAXTER'S WILL PAY MORE. TO WORK
CURRENT UNFUNDED LIKE. NOW WHAT
OF THE TEAMS. TO YOU ASK
GOVERNMENT JOBS TO GO TO NINE IT
IS. S. DOES THE CALPERS
AMORTIZATION EXCEEDED THE
AVERAGE REMAINING SERVICE BEER
FOR STATE EMPLOYEES. SO F YOU
LOOK AT THOSE STATE EMPLOYEES
AND THAT'S FIVE PLANS THAT
CALPERS ADMINISTERS. THE AVERAGE
REMAINING SERVICE PERIOD ALL OF
THESE RANGES BETWEEN ELEVEN AND
TWELVE WEEK TWELVE YEARS SO. AND
THAT'S BASED ON THE CURRENT
DEMOGRAPHICS OF THOSE PLANS WHEN
YOU LOOK AT THE DEMOGRAPHICS
BASICALLY ON AVERAGE STATE
EMPLOYEES ARE EXPECTED TO
CONTINUE TO WORK FOR THE STATE
FOR ABOUT ELEVEN TO TWELVE. NOW
SINCE CALGARY'S AS A NOW THAT.
AMORTIZED ISN'T YOU ON STANDARD
LIABILITY OVER A TWENTY YEAR
PERIOD THEN THE ADVERTISER THE
U. S. TODAY DOES IT EXCEED. THIS
AVERAGE REMAINING SERVICE PERIOD
BUT WHAT I WANT TO POINT OUT
HERE IS THAT. IT DOESN'T MEAN
IT'S A BAD THING. IN FACT IF YOU
REFER BACK TO THAT GUIDANCE
DOCUMENT THAT I MENTIONED.
EARLIER ON SIGNING POLICIES. IN
THAT DOCUMENT AS THE CAT WE'VE
PROVIDED A RANGE OF WHAT WE
THOUGHT WOULD BE A MODEL
PRACTICE A RECOMMENDED PRACTICE
WHEN IT COMES TO AMORTIZE ASIANS
BEARD. AND WHAT DID CAP STATED
IT IS ANYWHERE BETWEEN SIXTY TO
TWENTY YEAR SHOULD BE VIEWED AS
A AS A MODEL PRACTICE SO WHEN
YOU LOOK AT WHAT CALPERS DOES
NOW WITH ADVERTISING THEIR NEW
ONES ON THE LINE BUILT OVER
TWENTY YEARS. IT'S RIGHT IN LINE
WITH THE MODEL TRACTORS ISSUED.
BY THE CAT. SO FOR THE CAL
SPECIFIC IN FROM THAT IS
REQUIRED SECTION TWO OH TWO TWO
NINE IT'S ACTUALLY A LOT OF
INFORMATION IT'S A LOT OF
NUMBERS. BECAUSE OF WHAT'S
REQUIRED TO BE CALCULATED AND
DISCLOSED THE- CALPERS HAS BEEN
PROVIDED THIS INFORMATION EVERY
YEAR. THROUGH THEIR- WOULD. THE
ACTUAL EVALUATION OF THE STATE
THE MOST RECENT REPORT THAT'S
AVAILABLE IS THE JUNE THIRTIETH
TWO THOUSAND AND TWENTY ACTUAL
VALUATION WHICH WAS ISSUED LAST
FALL. WHAT I WANT TO POINT OUT
IS THIS WAS ISSUED BEFORE THE
CALPERS BOARD LOWERED THEIR
INVESTMENT RETURN ASSUMPTIONS
THAT THIS IS STILL BASED. ON THE
PRIOR S. HUMAN BREAST AND RETURN
OF 7% BUT THE INFORMATION IS
QUITE LENGTHY IT'S ON. PAGES
FORTY SIX THROUGH FIFTY SIX OF
THE REPORT I'VE BEEN QUOTED A
HYPERLINK HERE IN THE INTEREST
OF TIME I WAS NOT PLANNING TO GO
TO ALL OF THE INFORMATION TODAY
BECAUSE THERE ARE. A LOT OF
NUMBERS AND THE REPORT COVERS
ALL THE DISH SIDE PLANS FOR
WHICH THAT THE- THE CALPERS
ADMINISTERS IT'S JUST TAKING A
SLANG ESTATE INDUSTRIAL STATES
AT STATE POLICE OFFICERS AND
FIRE AND CALIFORNIA HIGHWAY
PATROL. SO THAT'S WHAT. I WANTED
TO COVER TODAY. TO ENSURE THE
CALL. THAT WAS ASKED AT
BEGINNING- WITH RESPECT TO. ON
LIABILITY OFTEN HEAR ABOUT SOME
OF THE ABOUT THE PENSION SYSTEMS
IN CALIFORNIA FISHY CALPERS AND
CALSTRS TEND TO MAKE A NEW
OFFER. THAT WHAT I'D LIKE TO
REMIND EVERYONE IS. TO YOU KNOW
. WE OFTEN SEE THESE NUMBERS AND
PEOPLE START TO PANIC BECAUSE
THEY ARE LARGE NUMBER MOSTLY
BECAUSE CALPERS AND DANCERS ARE
TWO OF THE LARGEST PENSION FUND
IN THE WORLD. WHAT IS IT THE WAY
TO VIEW AN UNFUNDED LIABILITY
WHEN YOU HEAR THAT THE- HELPERS
AS AN UNFUNDED LIABILITY- IT'S
SIMPLY TO SEE ANYTIME A PLAN AS
ANNOUNCED ON THE LIABILITY. IT'S
MORE YOU CAN VIEW IT AS TO WHAT
IS THE PLAN ON SCHEDULE YES OR
NO USUALLY UNFUNDED LIABILITY
NEEDS YOU PROBABLY FIND IT A
LITTLE BIT BEHIND YOUR. SCHEDULE
TO- TO BE A HUNDRED FUNDED WE
ALSO WHAT YOU SHOULD REALLY
WATCH WHEN YOU SEE A PLAN. IS
BELOW A 100% FUNDED AND HAS AN
ON STANDARD LIABILITY WHAT IS
THE MOST IMPORTANT AND MOST
CRITICAL IS TO FIRST FIND OUT.
DOES THAT PLAN HAD A IS THERE A
PLAN IN PLACE TO ACHIEVE FULL
FUNDING AND ELIMINATE THIS SOME
SORT OF LIABILITY OVER A
REASONABLE PERIOD OF TIME THAT'S
REALLY WHAT IS CRITICAL HERE. I
CALPERS. DEARBORN IS ADOPTED AT
TWENTY YEAR AMORTIZATION- IT'S A
BEAR GOAL THIS FOR ANY NEW
UNFUNDED LIABILITY. TO
ELIMINATED OVER THE NEXT TWENTY
YEARS WHICH IS A REASONABLE
PERIOD OF TIME I I'VE TELLS
JURORS WE HAVE ACCOUNTS
RESPONDING PLAN IN PLACE. WHICH
ARE CEO AND WE'LL TALK ABOUT
THAT MORE LATER WHEN SHE DOES
OUR PRESENTATION BUT THAT'S WHAT
HE DID. THE KEY FOR ANY PENSION
FUND WHEN YOU HAVE AN UNFUNDED
LIABILITY AS ALWAYS HE HAD A
PLAN IN PLACE IN THE NATIVE OVER
REASONABLE PERIOD OF TIME. YOU
ARE IN GREAT SHAPE. SO THIS IS
ALL I TO CALL TODAY HAPPY
ANSWER. ANY QUESTIONS. ANY
MEMBERS MAY. ON JUST PENSION IN
GENERAL IN JELLICO. THANK YOU
VERY MUCH. THANK YOU MR LAMBRO.
OF NO WILL TURN TO MEMBERS OF
THE TWO COMMITTEES PRESENT- ANY
QUESTIONS. YES SIR SOME OF OUR
RECORDS. THE QUESTION IS DURING
COVERT WE'VE SEEN THE OCCURRENCE
OF WHAT THEY REFER TO AS THE
GREAT RESIGNATION THROUGHOUT OUR
ECONOMY A LOT OF PEOPLE OPTING
TO RETIRE- HAVE WE SEEN ANYTHING
JUST SORT OF BEEN THE CURVE AS
AFFECTING STATE EMPLOYEES- SUCH
THAT THEY SORT OF NOTED CHANGING
YOUR UNDERLYING ASSUMPTIONS.
ABOUT AMORTIZATION WORK FORCE OF
SORTS OF ISSUES. DID YOU GET THE
MISERABLE YES I DID GET THE
QUESTION THANK YOU VERY MUCH. SO
I WILL NOT RESIGN THIS ONE I'LL
GIVE YOU MORE OF A GENERAL
ANSWER IT THERE SHOULD BE
SPECIFIC TO CALPERS SINCE I WORK
AT CALENDARS AS YOU KNOW EVERY
PENSION FUND AND WE HAVE BEEN
DOING THE SAME ACCOUNTS AS WE
HAVE BEEN MONITORING THE
DEMOGRAPHIC BEHAVIORS OF OUR
MEMBERS. THROUGH CODED WHAT I
WILL TELL YOU IS THAT GENERALLY
ACTUARIES AND PENSION FUND WILL
AT EVERY FEW YEARS PERFORM A IF
YOU WANT AN IN DEPTH REVIEW OF
DEMOGRAPHIC BEHAVIORS BY THEIR
MEMBERS BECAUSE THEY KEEP ANY
PENSION SIGN WHEN YOU TRY TO.
FUND RETIREMENT BENEFITS IS TO
ENSURE THAT THE ACTROS SOME
SHINS THAT YOU USE AT THE
FUNDING OF THE SYSTEM. OUR
REFLECTION OF REALITY AND HOW.
HE HATES SO I SAID CALISTO WAS
WE HAD BEEN WATCHING. CLOSELY
HOW. B. AS IN OUR- WE DID SEE.
INCREASED WITH AT THAT TIME OR-
IN THE EARLY DAYS OF SCHOOL THIS
. ONES REOPEN. AT THINGS THAT
STAY. SINCE SO FOR US I KNOW WE
- YOU KNOW. WHEN YOU LOOK AT
FUNDING PENSION BENEFITS IT'S
MORE ABOUT I THINK IT'S NORMAL
TO SEE- WHAT I WOULD CALL SHORT
TERM FLUCTUATIONS IN DEMOGRAPHIC
BEHAVIOR IS WHAT YOU HAVE TO ASK
YOURSELVES- FOR THAT WHEN YOU
FIND RETIREMENT BENEFITS IT HAD
THESE. ARE THESE CHANGES GOING
TO BE STAY FOR THE LONG TERM AND
THAT IS SOMETHING THAT I THINK
IT'S STILL TOO EARLY TO TELL NOW
THAT SINCE WE'RE STILL IN THE
KOBE AT THE END. BUT I THINK
MOST SYSTEMS WILL CONTINUE TO
MONITOR AND IF NEEDED MAKE THE
ADJUSTMENTS AND RESPONDING IN
THEIR SYSTEM. I HOPE I ANSWERED
YOUR QUESTION. THANK YOU. YES
ANYBODY ELSE. WITH QUESTIONS LET
ME JUST SAY I SAID I SUSPECT-
IT'S A SIMILAR ANSWER IT IT-
THROUGH AMBER WELL I ALSO HAVE
YOU WORKED ON IT SERVED ON ON
LOCAL- PENSION BOARDS RETIREMENT
BOARDS I KNOW THAT THE WORK THAT
YOU DO IS NOT. SUSPECT- TO SHORT
TERM PARKING FLUCTUATIONS OR-
ARE GREATLY IMPACTED BY THAT-
INFLATION I MENTION THAT MY
OPENING COMMENTS- INFLATION IS
OBVIOUSLY UPON US- WE DON'T KNOW
HOW LONG IT WILL BE HERE IT'S
CERTAINLY- WOULD NOT BE EXPECTED
TO BE AROUND LONG TERM RELATIVE
TO ACTUARIAL ASSUMPTIONS- THAT
YOU'RE MAKING- BUT I DON'T WANT
TO ANSWER THE QUESTION FOR YOU-
DOES THAT- IT IS THAT IF THEY
CREATE ANY PARTICULAR CHANGE IN
IN THE WAY YOU APPROACH YOUR
WORK. BECAUSE THE ANSWER IS NO
IT IS SOMETHING THAT- THE CALL
AND I THINK ALL ACTUALLY SOME
MONITORING RATE SINCE INFLATION
HAS BEEN. AS YOU ALL KNOW THE
HIGHEST WHICH SENIOR THE UNITED
STATES FOR THE LAST FORTY YEARS
AT. TODAY'S DAY I THINK WHAT
WHAT ACTUALLY IS PAID MORE
ATTENTION TO IS WHAT IS THE LONG
TERM EXPECTATIONS AND AS YOU
SAID. THIS EVEN THOUGH INFLATION
HAS BEEN PRETTY HIGHLY IT HAS.
NOT YET SHIFTED I THINK MOST
ECONOMISTS STILL EXPECT FROM
DEMONSTRATION TO BE IN THE TWO
AND A HALF PERCENT RANGE. BUT IT
IS SOMETHING THAT- I THINK ALL
ACTORS ON MONITORING RIGHT NOW
IN YOUR CORRECT WELL AND YOU
WILL NOT SEE. THAT YOUNG YOU'RE
NOT LIKELY TO SEE. CHANGES IN
THE SHORT TERM IN REACTION TO
THIS HIGH INFLATION BUT IT IS
SOMETHING THAT IS BEING.
MONITORED AS WE DO WAIT WAIT ALL
ACTUAL ASSUMPTIONS THAT GO INTO
THIS SYSTEM. THANK YOU FOR
RESPONDING. TO THAT I THINK
THAT'S IT- THIS. THANK YOU VERY
MUCH FOR YOUR PRESENT FOR B.
HERE- WE ARE NOW GOING TO MOVE
ON TO OUR NEXT PRESENTER IMAGES
INSERT HERE FOR THOSE- I THINK
WE HAVE SOME. FOLKS HERE FOR
PUBLIC COMMENT IN THE GALLERY
AND ON THE SHOW WE WILL HAVE
SOME. THROUGH THE MODERATOR
LATER WE WILL TAKE ALL PUBLIC
COMMENT AT THE END OF OUR FOUR
PRESENTATIONS SO. I JUST WANNA
LET YOU KNOW WHAT YOUR
EXPECTATIONS SHOULD BE FOR
PUBLIC COMMENT. SO WE'RE GOING
TO MOVE ON TO THE CHIEF
EXECUTIVE OFFICER OF THE
CALIFORNIA PUBLIC EMPLOYEES
RETIREMENT SYSTEM. OR CALPERS MS
MARCY FROST MISTRUSTING HIM FOR
BEING HERE WITH US TODAY AND-
LOOK FORWARD TO YOUR
PRESENTATION. GOOD MORNING
TERAKHIR TELL C. H. R. COOPER
AND MEMBERS OF THE TWO
COMMITTEES. I WAS VERY HAPPY
TODAY TO PROVIDE YOU WITH AN
UPDATE ON. ALL THINGS COUNTERS
AND I UNDERSTAND THAT YOU DO
HAVE A PACKAGE- THE PRESENTATION
THAT I SENT IN ADVANCE AND- ON
YOUR- WORKSTATION. SO IF WE GO
TO SLIDE TO. JUST MAKE A FEW
POINTS AND I WILL ADDRESS. SURE
KEEPER FLESH THAT HE AND HIS
INTRODUCTION. SO IF WE LOOK AT
THE LAST FIVE YEAR PERIOD WHICH
I THINK IT'S A GOOD PLACE TO
BEGIN FROM. THE CALPERS
FINANCIAL STREET HAS IMPROVED
AND MUCH OF THAT IS WHAT DAVID
LAMB OR OKAY WITH THE KID IN HIS
PRESENTATION JUST BEFORE ME. AND
BIT THE FUNDED STATUS OR WHAT WE
CALL THE COVERAGE RATIO WHICH IS
MOVING THE AVAILABLE ASSETS ON
HAND TO TAKE THE FUTURE PENSION
PAYMENTS ARE. THE TOP RIGHT OF
THE SYSTEM. FIVE YEARS AGO THAT
NUMBER SAT AT ROUGHLY 6566% AND
YOU FAST FORWARD BACK TO JUNE
THIRTIETH OF LAST YEAR BETWEEN
ONE POINT 3% RETURN THE CALPERS
WAS ABLE TO GET. AND THAT NUMBER
NOW SITS AT EIGHTY PERCENT. 80%
IS STILL NOT OBVIOUSLY BUT WE
WANT TO BE WANT TO BE CLOSER TO
THAT HAD A PERCENT MARKET AS
MUCH AS WE CAN. I'M IN WHAT THAT
WAS REALLY NEAT AND THAT WE
WOULD HAVE SIX HUNDRED BILLION
IN THE PORTFOLIO IF WE WOULD
HAVE A 100% COVERAGE RATIO OR A
100% FUNDED STATUS BUT THAT IS A
MARKER IT'S A MARKER THAT I'M
ONE MEMBER STATE ACROSS ITS
ENGINE TO OUR RETIREES. IT
PLEASANT AND GINGER AND IT
REALLY IS AN INDICATOR. OF A
PUBLIC PENSION PLANS HELLO. SO
OF THE THINGS THAT WE'VE DONE.
WITH MITIGATION BACK IN THOUSAND
SIXTEEN THE BOARD REALLY FIVE
ABOUT. I DRIED RATES A PRIME.
WAYS TO BE OVER PORTFOLIO WITH
MEETING HADN'T FUNDS BENEFITS
OVER. TO COME. AVOIDING ANY OF
THE- AND SHORT TERM IS ON. I
THINK IF. USING PUBLIC EMPLOYEES
TO. YOU HAVE TO ELEVEN I. REMAIN
IN AND MANY OF PLAN BUT YOU KNOW
. HAVE NEW ENTRANTS ON. WHO
WOULD WORKING. TWO FIVE THIRTY
YEARS SO. OUR EVER GO. AND
IMPLANTS ARE. BENEFITS FOR. AND
WE HAVE THINK ABOUT QUOTE. AND
SAME WAY. I SAW FOR THE BOY. AND
FOR THE- OFFICE WITH MEETINGS.
AROUND DRIVE. RATES BECAME-
PRETTY IMPORTANT I SINCE LEARNED
CERTAINLY OF THE- ONLY ONLINE
FINANCIAL. AND SO WHAT WE DID.
WE PUT UP WITH ME. POLICY IN
PLACE THAT THESE. SAID IT'S-
HERE ZERO OF RETURN. THAT HE IS.
GREATER RETURN OF THE DISCOUNT
RATE ON THAT LIABILITIES FROM
LIABILITIES ALSO. AT THE SAME
TIME. SO THE SEVEN. AND WAS
DECREASED SIX POINT EIGHT WHAT
IS DONE THROUGH THAT RISK
MITIGATION POLICY THAT WAS PUT
INTO EFFECT IN TWO THOUSAND AND
SIXTEEN. AND SOME OF THAT IS TO
HELP US WITH THAT YOU KNOW THE-
WE HAVE ABOUT THREE THOUSAND
PARTICIPATING EMPLOYERS AND WE
CERTAINLY KNOW THAT THEIR
BUDGETS. ARE QUITE STRANGE YOU
HEAR FROM THEM EITHER WITH THE
BASES WE NEED WITH THEM ON A
REGULAR BASIS. AND CONTRIBUTION
RATES AS A DAVIS PRESENTATION HI
SEAN. YOU PUT A CONTRIBUTION
RATES AS WELL AS INVESTMENT
RETURNS WILL NEED TO LOOK AT THE
BOOK OUT THE PENSION CAME. IS
GIVEN TO A RETIREE. SO LAST
NOVEMBER I AM FOUR YEARS AGO
WHAT THE COMPANY ASSET MY- NOW.
SITE IN. AT THE BORDER THE NEW
STRUCTURE ASSET ALLOCATION. THAT
ALLOCATES MORE TO THE PRIVATE
MARKETS PRIVATE EQUITY. REAL
ASSETS AND THEY ALSO DID A 5%
ALLOCATION TO PRIVATE THAT
STRATEGY. AND I ALSO ADDED SOME
LEVERAGE AT THE TOTAL FUN LEVEL.
IS LEVERAGING THE ASSET CLASS
LEVEL IN THE PAST JUST LIKE MOST
OF THE PENSION PLANS BUT THE
BOARD WANTED TO MONITOR THIS A
LITTLE MORE CLOSELY AND SO THEY
PUT IT AT THE ASSET ALLOCATION
LEVEL. AND JACK TO GET A BIT
MORE TRANSPARENCY AND
UNDERSTANDING ABOUT HOW MUCH
MORE WOULD NOT BE HIS. TIMING IS
EVERYTHING WAS YOU KNOW ON ON
LOSING LEVERAGE LEVELS BEEN
SPEAKING ABOUT THAT. HAPPY TO
ANSWER QUESTIONS AT THE END. OF
MY JOB. AND ALSO ADDRESSING A
SUSTAINABLE INVESTMENTS WE
REALLY HAVE MOVED AWAY FROM E.
S. AND G. AND REALLY. PUT THAT
INTO THIS PRODUCT CATEGORY AND
WHAT DOES IT MEAN TO HAVE A
SUSTAINABLE INVESTMENT PROGRAM.
I DIDN'T BUY JEANS ADDRESS RIGHT
HERE WITH ME TODAY. I HE IS OUR
INTERIM MANAGING INVESTMENT
DIRECTOR FOR SUSTAINABLE
INVESTMENTS IN GOVERNANCE AND HE
IS- HE REPLACED AND SIMPSON. WHO
LEFT THIS MONTH MORE RECENTLY.
AND THEN SOMETHING I THINK THE
WHOLE ORGANIZATION AS PART OF
ITS HAVING SUSTAINED OPERATIONAL
EXCELLENCE IN CUSTOMER
EXCELLENCE RELATED TO. YOU KNOW
ESSENTIALLY WHAT TIME IN THE
HOSPITAL ON THE WEDNESDAY AND
THEN EVERYONE FULL TIME REMOTE
WORKING VERY NEXT DAY. OUR IT
SYSTEMS ARE SECURITY SYSTEMS OUR
CUSTOMER. SYSTEMS ALL HAVE
WORKED EXTREMELY WELL WITH
MARKEDLY WELL OVER THE LAST TWO
YEARS. AND LAST WEEK WE GET
RETURN ARE TWENTY EIGHT HUNDRED
EMPLOYEES RE OPENED A REGIONAL
LOCATIONS AND TO ADD THAT IT'S
GOING QUITE WELL RIGHT. I SEE
MOSTLY. AND MOST OF OUR
EMPLOYEES ARE WORKING IN THE
HYBRID MODEL WHERE THERE THREE
DAYS IN THE OFFICE AND TWO DAYS
FROM NOW. WE HAD MADE OUR ENTIRE
CONTACT CENTER BE AVAILABLE FOR
FULL TIME OR NOT WOULD CONTINUE
TO OFFER TO OUR MEMBERS ARE TWO
MILLION MEMBERS AROUND. THE
STATE OF CALIFORNIA AND BEYOND.
HI PENSION PAYMENTS MOST OF THAT
IS. EIGHT TO INDIVIDUALS WHO
CONTINUE TO RESIDE IN THE STATE
OF CALIFORNIA CLOSE 290% OF
THOSE PENSION PAYMENTS. AVERAGE
MONTHLY ALLOWANCE FOR ALL THE
TIMES AND- ITS NUMBERS
CRITICALLY IMPORTANT BECAUSE WE
OFTEN HEAR CRITIQUES THAT NEEDS
PUBLIC EMPLOYEES ARE MAKING A
SIGNIFICANT AMOUNT OF MONEY IN
RETIREMENT. AT THE AVERAGE
AMOUNT IS AROUND THIRTY TWO
HUNDRED DOLLARS. AND I BROUGHT
THE SCHOOL EMPLOYEES INTO THAT
NUMBER IF YOU JUST LOOK AT THIS
ONE POINT AVERAGE THAT NUMBER
COMES DOWN. QUITE CONSIDERABLY.
FOR ALL NEW RETIREES WHO ARE NOW
RETURNING OUT OF THE SYSTEM OF
THE LAST FOUR YEARS. THAT NUMBER
INCREASED TO THIRTY SEVEN NINETY
THREE AND 33% OF OUR MEMBERS.
ADDITIONAL MEMBERS DO NOT HAVE
ACCESS. OR DO NOT USE SOCIAL
SECURITY. I WILL MEMBERS ARE ARE
GOING TO. APPELLATION TO BE
HONEST I FOUR HI AS A- JUNE
THIRTIETH OF LAST YEAR THE
BERKELEY SEVEN SEPARATE
INSISTING BILLION THAT NUMBER
WENT OVER THE FIVE HUNDRED
BILLION AT THE END OF THE YEAR
AND I HAVEN'T SEEN IN SOME OF
THE VOLATILITY THAT WE'VE ALWAYS
BEEN SEEING AND EXPERIENCING
THAT NUMBER HAS COME BACK DOWN
AND AGAIN JUST A REMINDER OF THE
FUNDED STATUS AT 80% WHICH IS.
IN A BETTER PLACE CERTAINLY
NINETEEN NOT 6566% AT THAT TIME
WHAT WE'RE MOST CONCERNED ABOUT
IS AND NOT AS WELL OKAY 50%
MARKER AND THAT WOULD BE VERY
DIFFICULT FOR A PUBLIC PLAN OF
OUR SIZE LIABILITIES WE HAVE TO
FULLY RECOVER FROM THAT SO AGAIN
ANOTHER REASON WHY THAT
PRESENTATION AT POLICY AND
INVESTMENT STRATEGIES WERE PUT
IN PLACE AND THEN A TWENTY ONE
POINT THREE I NEVER. TURNED ON
ON INVESTMENTS. I'M GOING TO
CITE IF YOU LOOK AT THE LONG
TERM. AGAIN FOR A LONG TERM AND
THAT'S- A WEEK INTEND TRIPLE Y.
TERM. YOU OBVIOUSLY WE HAVE TO
LITTLE BETTER I. YOU KNOW
ANALYSIS OF EACH. SHORT TERM
DYNAMIC OF MEETING HAPPEN IN ON
THE- BUT ESSENTIALLY OTHER THAN
THE- EIGHT OH NINE I PARTY INTO
CRISIS. EVERY TIME PERIOD SPANS
IN EXCESS OF THE ASSUMED RATE OF
RETURN TODAY AT SIX POINT EIGHT.
IT WAS AT SEVEN POINT FIVE IN
TWO THOUSAND SIXTEEN BUT HAS
BEEN COMING DOWN. TO WHERE IT
COUNTS SINCE ABOUT SIX POINT
EIGHT. I COMING TO. AN OPPORTUNE
ON SIX INVESTMENT RISK. YES
THERE'S A LOT OF RISK IN THE
PORTFOLIO THERE'S REALLY NOWHERE
TO HIDE FROM NOT TIGER WOODS NEW
INSPECTIONS THAT'S POINT 8% ON.
ON ON YOUR MONEY. I
SUSTAINABILITY BOTH SHORT TERM
AND LONG TERM AT THE ABILITY FOR
OUR PUBLIC EMPLOYEES TO CONTINUE
TO AFFORD. AFRICANS PUBLIC
EMPLOYEE BENEFITS DEFINED
BENEFIT PLANS. AND OUR
CONSULTANT FOR AND OBVIOUSLY
WANT TO CONTINUE TO OFFER THIS
IS FOR THE RECORD. RETENTION
IT'S I. HELPS WITH THAT TOTAL
COMPENSATION OF BEING A PUBLIC
EMPLOYMENT SOMETIMES SILENCE AND
A LACK. IT TYPICALLY EMPLOYEE
BENEFITS FOR HOW YOU BALANCE OUT
THAT EQUATION YOU NEED TO
RECRUIT FOR TOP TALENT. AND
THEN- EXCEPTIONAL HEALTH CARE WE
ARE THE SECOND LARGEST IMPORTER
PURCHASER OF HEALTHCARE IN THE
UNITED STATES JUST UNDER FEDERAL
GOVERNMENTS WILL TALK A LITTLE
BIT ABOUT THAT. OUR STRATEGY AND
THEN OUR NEWLY RELEASED. ABOUT A
YEAR AGO WHEN WE STARTED CURSING
AT THE MEETING QUESTION
FRAMEWORK. WHICH REALLY IF YOU
COMPARE THAT TO WHAT HAPPENS IN
THE PRIVATE SECTOR COMPANIES
AROUND THE REGIONAL EQUITY
AUDIT. THIS WOULD GIVE YOU THAT
SAME. FROM THE SAME FRAMEWORK OR
THE SAME TYPES OF STRATEGIES TO
MAKE SURE THAT THE WORK FORCE
THE SUPPLIER DIVERSITY IN THE
HEALTH CARE PLANS ALL ARE
REPRESENTATIVE OF. THE DIVERSITY
OF THE STATE OF CALIFORNIA. SO
MOVE ON TO AN- READ. AND SO WHAT
WE CAN DO OUR YEAR. PLAN
BUILDING MANAGEMENT AND STAFF
THE CAPITAL MARKETS. BASICALLY
WE COULD TO EARN ON ON NINETY
THREE- PUBLIC EQUITY IT WILL
STAY. FOR STRUCTURE EXTENDS. BUT
THERE'S NO. HAVE BEEN. OVER THE
NEXT YEARS OF TIME. WELL YOU
KNOW THAT WE HAD TO GO. SO AT
SIX. TO GET OUT THAT 7% WHEN WE
LOOK AT THE NEW CAP MARKET
ASSUMPTION THAT. WE IS 6% SO
THEY CANDIDATE FOR. THAT WERE
PRESENTED TO THE BOARD INCLUDING
GOING UP NEXT CHAPTER AT 6% PER
CALL IT SIXTY FIVE. SIX POINT
FIVE SIX POINT SEVEN FIVE SIX
ONE EIGHT AND THEN SEVEN. THE
BOARD ULTIMATELY DECIDED ON THE
SIX POINT EIGHT. BECAUSE OF
THOSE LOWERING. CAPITAL MARKET
ASSUMPTIONS INCREASE THE
ALLOCATION TO PRIVATE ASSETS.
AND REALLY PUSHED FOR TIME YOU
KNOW HOW WE ENGAGE THE PUBLIC
COMPANIES WILL TALK ABOUT HOW
WE'RE ENGAGING THE PRIVATE
COMPANIES AS WELL. AND IT REALLY
PUSHED US TO GET MORE INVOLVED
AROUND- YOU KNOW CLIMBING AROUND
THE PERSON YOU RECKON CAPITAL
MANAGEMENT ISSUES THAT ARE
HAPPENING WITHIN. THE COMPANY'S
WORK WHERE WE INVEST. SO ON TO
ASK NINE. THAT IS COULD BE. WILL
NOTICE OUR LAST HALF AN HOUR. OF
IS APPROVED IN NOVEMBER PRIOR
THAT HE HAD AN- TO. THE TO CATCH
THAT WAY REMOVED BECAUSE OF THE-
OUTLOOK DEMAND THAT'S HOW WITH
OUR INVESTMENT THIS. I DID ALSO
TO ON WHAT I CAN THE TOTAL. FOR
IN THE PAST THERE WAS A LOT OF
ASKED CLASS. APPROACH IN
SOMETIMES THOSE ASSET CLASSES
WERE COMPETING WITH ONE ANOTHER
OR THEY WOULD CANCEL OUT A
STRATEGY. IT'S A REALLY PUTTING
AND- EVERYONE'S INCENTIVE PLANS
AS WELL THAT WHEN THE TOTAL FUND
AS WELL THEN THE PERFORMANCE OF
THAT BRAND WILL BE SHARED WITH
HIM THIS MONTH AND START LOOKING
AT THAT. I TOLD MY MOTHER VERSUS
JUST AGAIN ASK US TO LOOK AT THE
FIXED INCOME. PRIVATE EQUITY.
AND THEN I'M REAL ASSETS SINCE
THE- YOU KNOW NINE POTENTIAL
PRICES WELL IT'S BEEN A LONG.
LONG JOURNEY HERE IS REALLY
MOVING OUR REAL ASSETS STRATEGY
AWAY FROM A GROWTH STRATEGY TO
MORE OF AN- INCOME BASED
STRATEGY. AND AT THAT PARTICULAR
PORTFOLIO HAS TWENTY PERCENT. IN
THE MOBILE ENERGY STORAGE. IN
THE PORTFOLIO SO THAT'S BEEN A-
RECENT DEVELOPMENT I WOULD SAY
WOULD LAST YEAR'S RECOGNITION
BUSTED RECORDS AND RECORDS. I
WATCHING. OVER THOSE PARTS FROM
YESTERDAY. AND ON THE DEFENSIVE
BACK PLEASE. I REALLY THIS MEAN
I THINK FOR ALL OF NEW BAD. YOU
KNOW TWENTY ONE THREE PER RETURN
THAT NEED NOT LAST MORE COMPARE
DATA BENCH MARK THAT TO ME OF
OUR- YOU'LL SEE THAT NUMBER. YOU
KNOW. LAST WE WERE TWENTY ONE
THREE CLEARANCE WILL BE TO
TWENTY FIVE AND SEVEN. THAT'S
REALLY DOES DEPEND STRATEGY IN
LIGHT. WE'RE ASKING BEFORE WHEN
. I WAS MOST REPAIRS WERE NOW
AROUND THREE PER. AND AT PORT WE
SEVEN. THOSE DEFENSIVE STRATEGY
ACTION STABLE ON DOWNSIDES OF.
HOW ALL THE TEAMS FIRST MEETING-
HOW MANY BASICALLY AFFECTIONATE
ACROSS THE BOARD- SO NOW I'M
GONNA TURN IT UP AGAIN AND
VILLAGES WHERE A COUPLE OF THE
SUSTAINABILITY SLIDES A MOMENT
ME QUICKLY THROUGH THIS SO WE
CAN GET SPARKED QUESTIONS. WE
GOOD MORNING CHAIRMAN MEMBERS OF
THE COMMITTEE. THANK YOU FOR THE
OPPORTUNITY TO SPEAK ON
SUSTAINABILITY OUR BOARD OF
ADMINISTRATION DIRECTS OUR
EFFORTS ON SUSTAINABILITY TO
STOP THE POLICY. DOES INCLUDE
TOTAL FUND INVESTMENT POLICY
INVESTMENT BELIEFS GOVERNANCE
AND SUSTAINABILITY PRINCIPLES
AND STRATEGIC PLANNING
SUSTAINABLE INVESTMENTS. IT IS
IMPORTANT TO NOTE THAT GIVEN THE
NATURE OF OUR LIABILITIES WE ARE
FOCUSED ON THE LONG TERM. PLEASE
MOVE TO SLIDE ELEVEN. HERE YOU
SEE NOT THE NUMBER OF ITEMS AND
WE ARE FOCUSED ON INSISTING
ABILITY THEY INCLUDE RESEARCH
THIS INCLUDES INTERNAL RESEARCH
. WHICH IS DONE BY OUR STAFF IT
ALSO INCLUDES MAJOR INITIATIVES
LIKE OUR SUSTAINABLE INVESTMENT
RESEARCH INITIATIVE WE ARE ON C.
READ THREE WHICH WE WORK WITH AN
ACADEMIC CONSULTANT AND WE'RE
FOCUSED ON. CLIMATE RISK AS WELL
AS HUMAN CAPITAL MANAGEMENT.
DATE IN COURT REPORTING IS
IMPORTANT. THERE'S A HUGE GAP
BETWEEN WHAT INVESTORS THE X.
AND WHAT WE GET IN REGULATORY.
DATA REPORTS SO WE ARE FOCUSED
ON GETTING MORE OUT OF THE
REGULATORS AND GETTING MORE FROM
COMPANIES. WHEN IT COMES TO THE
DATA THAT THEY PROVIDE. GIVEN
THE ENHANCEMENTS IN TECHNOLOGY
WE BELIEVE THAT COMPANIES CAN
PROVIDE AS MUCH MORE. AND GIVE
IN THAT WOULD GIVE US A BETTER
OPPORTUNITY TO MAKE GREAT
ALLOCATION DECISIONS. AS YOU
KNOW CLIMATE CHANGE IS
INCREDIBLY IMPORTANT. CLIMATE
RISK IT IS A PRIORITY FOR US AND
WE'LL TALK MORE ABOUT THAT.
DIVERSITY INCLUSION AS WELL. WE
THINK THIS IS AN IMPORTANT
FACTOR BECAUSE OF OUR POPULATION
WE NEED TO GET THE MOST OF THE
TALENTS OF ALL OF THE PEOPLE. WE
CAN POINT IT AT. CHIEF DIVERSITY
AND INCLUSION OFFICER AND WE
HAVE A SUBSTANTIAL. D. I.
FRAMEWORK. PRIVATE EQUITY IS
INCREDIBLY IMPORTANT AND WE ARE
EXPANDING OUR PRIVATE EQUITY
INVESTMENTS AND WE ARE FOCUSED
ON ADDITIONAL TRANSPARENCY. IT
IS SUBSTANTIAL THAT ARE PRIVATE
EQUITY GROUP HAS LAUNCHED A VERY
IMPORTANT INITIATIVE CALLED YES
G. DATA CONVERGENCE PROJECT WITH
A FOCUS ON NET HIRES EMPLOYEE
FEEDBACK WORK INJURIES RENEWABLE
ENERGY AND- GLOBAL GREENHOUSE
GAS EMISSIONS. FINALLY THE
MANAGER EXPECTATIONS NEEDS
EXACTLY THAT WE EXPECT OUR
MANAGERS TO DO WHAT WE DO. AND
FOCUS ON WHAT WE WANT THEM TO
FOCUS ON AND WE DO THAT BY
SHARING OUR POLICIES. WITH THEM
. NOW WE MOVE ON TO SLIDE TWELVE
. WHEN WE FOCUS ON SLIDE TWELVE
WE FOCUS ON THE FOUR STREAMS
DOES OUR ADVOCACY ENGAGEMENT
INTEGRATION AND PARTNERSHIPS.
THE WORK WE DO IS BEST DONE
THROUGH PARTNERSHIPS. IF YOU
WANT TO GO FAST YOU GO ALONE BUT
IF YOU WANT TO GO FOR YOU MOVE
WITH OTHERS IN THROUGH THIS IN
ALL OF THESE EFFORTS WE FIND IT
INCREDIBLY EFFECTIVE WHEN WE
WORK WITH PARTNERS. A GREAT
EXAMPLE OF THIS IS A BOOST TO
SLIDE THIRTEEN. CONGRESS
CONVENED AND CO FOUNDED CLIMATE
CLIMATE ACTION ONE HUNDRED PLUS.
IT CURRENTLY CONSISTS OF SIX
HUNDRED FIFTEEN FESTERS
REPRESENTING SIXTY FIVE TRILLION
IN ASSETS. IT IS THE WORLD'S
FIFTY SYSTEMICALLY IMPORTANT
CORPORATE GREENHOUSE GAS
EMITTERS. THOSE ARE RESPONSIBLE
485% OF PORTFOLIO EMISSIONS. WE
SIT ON THE STEERING COMMITTEE OF
THE ORGANIZATION WE CULTURED THE
H. ADVISORY GROUP AND WE BELIEVE
THAT TWENTY TWO COMPANIES. IT IS
IMPORTANT THAT. AMONG THESE
COMPANIES ONE HUNDRED ELEVEN OF
THEM. HAVE ME NET ZERO GOALS BY
- TWENTY FIFTY. MADISON CONDON
APER ON EXTERNALITIES AND COMMON
OWNER OPINED THAT CLIMATE ACTION
ONE HUNDRED PLUS CONSTITUTES THE
MOST SIGNIFICANT. PRIVATE ACTION
ACTUALLY REDUCE CARBON EMISSIONS
FROM THIS I THINK IS IMPORTANT
HIGHLIGHT THE SPECIFIC EXAMPLE
AND THAT IS WITH OCCIDENTAL.
CALPERS LEADS ON THE ACCIDENTAL
ENGAGEMENT. ACCIDENTAL WAS THE
FIRST TO SET NET ZERO TARGETS.
IN FACT IT IS VIEWED AS THE ONLY
COMPANY THAT SETS TARGETS
AMBITIOUS ENOUGH TO ACTUALLY
MEET THE NET ZERO GOAL BY TWENTY
FIFTY IN FACT THEY'VE SET THEIR
GOAL. TO BE MET BY TWENTY FORTY
. AND WE DO THIS THROUGH A
NUMBER OF MEMES METHANE CAPTURE
EFFICIENCY COGENERATION FLARING
REDUCTION. EMISSION MITIGATION
AND LOW CARBON PRODUCTION. I
PROVIDE THESE DETAILS THAT'S
WHAT WE ARE ABLE TO DO AND WE'RE
ABLE TO GET TO ONE BOOK THROUGH
PARTNERSHIPS AND WE ACT AS AN
ACTIVE OWNER OF THESE OF THESE
PARTICULAR ASSETS. AND WITH THAT
I'LL TURN IT BACK OVER TO MARCY
. THANK YOU. SHE SLIDE FIFTEEN
AS I INDICATED EARLIER WE HAVE
ABOUT THREE THOUSAND PUBLIC
EMPLOYERS- COULD PARTICIPATE IN
THE CALIPER SYSTEM AND WE SEE
THEM AS KEEN TO RUNNING AN
EFFECTIVE SYSTEM THAT WE NEED TO
BE ACCESSIBLE TO THEM WITH THE
TOOLS THAT HELP THEM MANAGE
THEIR BUDGETS APPROPRIATELY WE
NEED TO GIVE THEM PRE FUNDING
OPTIONS TO THINKING TO THE
LEGISLATURE FOR SUPPORTING THESE
TRUSTS AND ALLOWING US TO BE
ABLE TO IMPLEMENT THOSE TO HELP
OUT ALL OF OUR PARTICIPATING
EMPLOYERS. AND NO ONE FOR YEARS
I THINK THAT AT THE HEIGHT ON
THE SIDE BECAUSE WE HAD SOME YOU
KNOW THERE ARE TWO REPUBLICAN
FOUR YEARS EARLY ON THERE'S A
LOT OF MEDIA COVERAGE WHERE I.
WE HAD EMPLOYEES WHO WERE NOT
OBTAINED THE CONTRIBUTIONS FOR
THEIR CURRENT ACTIVE EMPLOYEES
AND WE'RE NOT PAYING THE
ASSOCIATED CONTRIBUTIONS FOR THE
RETIRED. AND SO- TODAY I WE HAVE
NO EMPLOYERS WHO ARE DOING WHEN
I'M IN RETENTION PAYMENTS ON THE
ARE REPORTING ABOUT THE DATA.
AND CONTRIBUTIONS TIME. IF YOU
PROVIDE A COURT REPORT THE BOARD
I. ONCE BOARD TO MAKE A
DETERMINED. ON I GERMANY I'M IN
. CHURN THAT TERMINATION ACTION
HAPPENS WITHIN SIXTY DAYS. YEAH
THE LITTLE BOY IN SEMESTER TIRE
MEANS A LOT OF NOTICE AND YOU
PROBABLY HAVE HEARD FROM SOME OF
OUR- I INDIVIDUALS RETIREES WHO
HAD SPENT THEIR PENSION PAYMENTS
CUT BY SIXTY FIVE PERCENT. AND
BECAUSE OF THE DIFFERENT NATURE
AND BACKS. J. P. ACT. ON THE
HEALTHCARE SIDE WE USED TO CALL
ME HELP THAT TRIANGLE IT IS NOW
MORE OF A QUIET A FULL CIRCLE
AND WHAT WE GOT IN THERE IS
REALLY HELP THAT THEY NEED THAT
SO I WOULD HAVE TO MAKE SURE
THAT WE HAVE A GLOBAL OUTCOMES
FOR EVERY PURCHASE. WE HAVE ONE
POINT FIVE. MILLION PARTICIPANTS
IN OUR HEALTH CARE PROGRAMS-
WHAT WE'RE PURCHASING HEALTH
CARE. SO NOT ONLY IS IT
IMPORTANT INSTANT HIGH QUALITY
IT ALSO NEEDS TO BE ACCEPTABLE.
AND I DO HAVE A SLIDE WHERE I
CAN TALK A LITTLE BIT ABOUT THAT
JUST FOR THE RECORD TO SLIDE.
TWENTY AND THIS IS AN AREA OVER
THAT'S BEEN HAPPENING OVER THE
LAST EIGHTEEN MONTHS IT'S MORE
IN LINE WITH OTHER HEALTH CARE
PURCHASERS HERE IN THE STATE OF
CALIFORNIA. I WE'RE ALL
BASICALLY RUNNING THE SAME TYPE
OF OPERATIONS OF THE SAME TYPE.
OF PURCHASING I'M IN. TIME TO
SUPPLIERS OR THROUGH OUR TEENS
AREN'T WORKING WITH THE SAME
PLAN ALL THE GAMES SEEMS VERY
SEPARATELY YEAH WE ALL ARE
COVERING THE SAME TYPES OF
SERVICES. AND SO- BEHAVIORAL
HEALTH HAS BECOME EXTREMELY MORE
IMPORTANCE AND WHAT WE'VE SEEN
SOME OF THE SUPPLY CHAIN ON THE
HEALTH SERVICES WITHIN
SUFFERING. SO TRYING TO
CHOLESTEROL TWO TO THREE TOP
PRIORITIES FOR TOP PURCHASERS
WHICH WOULD INCLUDE. CALPERS
CALIFORNIA AND DEPARTMENT
MANAGED HEALTHCARE GAUGE I
SNACKS AND REALLY PROUD OF THE
WORK THAT'S BEEN HAPPENING THERE
BUT WE SING ON THREE PRIMARY
CHRONIC CONDITIONS OBVIOUSLY
PHARMACEUTICALS ARE THE LARGEST
PART AND SEND ALONG WITH
INPATIENT. AND LOOKING FORWARD
TO SEEING THE OUTCOME OF THE
WORK THAT'S. BEEN HAPPENING BY
THIS COALITION. AND ON US. THE
SITE IS NOT TO TWO WHICH IS OUR
DIVERSITY AT AND FRAMEWORK AND
WE'RE QUITE PROUD OF A SPRING
TOGETHER THAT WE CAN'T ALL- WE
INDEPENDENT WORK HOW ACROSS THE
ORGANS AND WITH ABOUT SOME HELP
WITH. KIND SUPPLIERS BUT THAT'S
AN INVESTMENT THAT'S IN TALENT
MANAGEMENT AND WE HIRE IN
NINETEEN OF THE TWENTY EIGHT
HUNDRED POINTS TO HAVE A CALPERS
SO IT'S ALL BASED ON OUR FIVE
CORE PRINCIPLES ONE WE CULTURED
VERY IMPORTANT THAT WE HAVE A
CULTURE THAT IS. GETS THE BEST
TALENT POSSIBLE THAT PEOPLE FEEL
THAT THEIR CULTURE THAT PROMOTES
ANNIKA TREATED FAIRLY BY THE
LEADERSHIP AND THEY HAVE ACCESS
TO OPPORTUNITIES TO LEARN GROW
DEVELOP AND PROMOTE AND WE DO
HAVE WAYS OF MEASURING EVERY ONE
OF THESE FIVE COMPONENTS AND
THEN ON THE TALENT MANAGEMENT
SIDE IT WOULD HAVE TO BE ABLE TO
WORK HE NEEDS AND- WHAT'S THE
BEST ANSWER THAT'S HEALTHCARE WE
HAVE TO BE ABLE TO GET THE RIGHT
TALENT IN THE DOOR. AND TALENT
AGAIN THAT REPRESENTS THE
DIVERSITY. HERE IN THE STATE OF
CALIFORNIA. EXACTLY I DID ABOUT
THAT. SUPPLIER TO MAKE SURE THAT
WE ARE IN EACH THAT WE A NEED
TO. CONTRACT WITH A NEW TO FILL
EIGHT FOR PART OF THE BASE THAT
HAS SELECTED FOR OUTSIDE. THAT
WE IN THAT WE TRY TO DIVERSE
SENSE. TO CHOOSE FROM AND THEN
ON INVESTMENTS HI JAMES
MENTIONED THIS THIS IS ALL ABOUT
MANAGER SELECTION. AT THE BASKET
DURING ASSETS ARE MANAGED IN
HOUSE AT CALPERS SO THAT TALENT
MANAGEMENT AND RECRUITMENT.
EQUALLY IMPORTANT IN THE WAY
THAT WE'RE RUNNING OUR
INVESTMENT PROGRAM THAT WE'RE-
MAKING SURE THAT WE HAVE
DIVERSITY AT THE TABLE WHEN
DECISIONS ARE BEING MADE AROUND
THE PARK. AND HE SEEMS PRETTY
SIGNIFICANT. IMPROVEMENTS THERE
THERE WERE QUITE PROUD OF. SO
IN. I WOULD HAVE A
RESPONSIBILITY THAT LONG TERM.
ASSISTANCE AND THE PENSION FUND
. I TO LIVE TO DO WHAT ON ITS
PROMISE. STUDENTS AMONG THEM. I
MOSTLY GETTING. THAT WE MAKE
SURE THAT THEY HAVE ACCESS TO
HIGH QUALITY HEALTHCARE
INCLUDING THE PUBLIC IMPORTANCE
TO. IF THEY COME INTO. OUR
HEALTH CARE PROGRAM THEY HAVE TO
PROVIDE. HEALTHCARE SERVICES OR
HEALTHCARE COVERAGE. FOR THEIR
RETIREES AS WELL. CONTINUING TO
LOOK MEDICARE MEASURES TO REDUCE
OUR OF BEGAN IT'S VERY TO HIDE
FROM THE RISK. BECAUSE YOU RISK
FREE RATES IS CERTAINLY NOT SIX
POINT EIGHT. OUR FOCUS VERY MUCH
SOMEONE WERE SERVICING AS WELL
AS OPERATIONAL EXCELLENCE AND
WE'RE COMMITTED TO WORKING WITH
THE LEGISLATURE AND OTHER KEY
STAKEHOLDERS ON MEETING ANY OF
OUR GOALS I KNEW I HAD SEVERAL
MEETINGS WITH LEGISLATORS ON
VARIOUS FILM IDEAS FOR
PROPOSALS. REALLY APPRECIATE
THOSE CONVERSATIONS. AREN'T SO I
CAN. SURE I CAN GO. DIRECTLY
ANSWER SOME OF. THAT CHECK OR
ASK FOR YOU STRAIGHT BACK TO YOU
FOR GENERAL QUESTIONS. HE YES
THANK YOU VERY MUCH MISS ROSS-
WANTED TO PLEASE- RESPONDED SURE
COOPER'S QUESTIONS AND WE'LL SEE
WHAT ELSE WE HAVE IF WE HAVE
OTHER QUESTIONS WILL HAVE TO DO
A BIT OF A LIGHTNING AROUND THE
HOME. HE DID VERY WELL COVERING
A WHOLE LOT OF INFORMATION- IN A
IN A WITHIN THE EXPECTED PERIOD
OF TIME BUT- WE'LL OUT ABOUT
FIVE OR TEN MINUTES FOR Q. NA
JUST TO SET EVERYONE'S
EXPECTATIONS SO THANK YOU
ALTERNATE BACK TO YOU- MISS ROSS
. SHARE AS I UNDERSTAND THE
QUESTION AND IT WAS REGARDING
THE INVESTMENTS IN THE PORTFOLIO
AND HOW MUCH HAS BEEN LOST BY
THE SYSTEM'S EITHER IN ACTUAL
INVESTMENT LOSSES OR AN
OPPORTUNITY LESSONS- EITHER
THROUGH SELF DIRECTED INVESTMENT
OR LEGISLATED TO TAP MY DECIDED
TO COMPEL THE VESTMENTS AND THE
MOST RECENT REPORTS ARE THAT WE
GET FROM BOETTCHER CONSULTANTS
WHO DOES THE CALCULATION ON
RECORDED THE BEST ONES IN THE
SUSPENSE IS ABOUT EIGHT BILLION
DOLLARS AND LOST LOST
OPPORTUNITY. OR THE COST OF THAT
ACTUALLY MEANT A LOT OF THAT
INCIDENT TO BACK THOSE ARE THE
VAST MAJORITY NEEDS AND TOBACCO
AT THIS POINT AND BUT I THINK
IT'S SAFE WITH HIM THE WHOLE
IDEA OF ENGAGEMENT OVER THE LAST
NIGHT IT'S NOT SOMETHING THAT WE
FIRMLY BELIEVE AND NEAT WE DON'T
BELIEVE THAT ANY ONE INVESTOR
THE BEST IN HIS WILLINGNESS ON
THE ROOT CAUSES OF CARBON
EMISSIONS. IT'S GOING TO TAKE-
YOU KNOW A NUMBER OF THIS FIFTY
FIVE TRILLION KIND ACTION ONE
HUNDRED PLUS IT'S GOING TO TAKE
EVERYONE DOING THIS INCLUDING
GOVERNMENTS REGULATORS INVESTORS
THIS IS NOT SOMETHING CALPERS
AND CAL STAR SECIAL SPEECH
SPEAKING FOR THEMSELVES STAND
IT'S NOT SOMETHING THAT WE CAN
SOLVE INDEPENDENTLY AND JUST AS
A REMINDER ON THE FOSSIL FUEL
SITES ON WHICH I THINK IS
SOMETHING AND THE QUESTION AS
WELL AS SAFE IF NOT 20% OF THE
PORTFOLIO IS REALLY EXPANDS
THERE IT DOESN'T SOLVE THE
PROBLEM OF GREENHOUSE GAS
EMISSIONS OR GET INTO A CARBON
NEUTRALITY PORTFOLIO. WHEN YOU
THINK OF OTHER SECTORS THE
CONSTRUCTION SECTOR THE
PACKAGING SECTOR OF THE TRAVEL
SECTOR AND YOU KNOW IF YOU
REALLY WANT TO SOLVE GET
INTERNET SIR BY TWENTY FIFTEEN
WHICH IS WHAT WE'VE. COMMITTED
TO GET INTO THAT SORT OF I.
TWENTY FIFTY QUID- COMING. LOOK
YOUR ACCOUNT. AND THEN THAT'S ME
TO TAKE MORE THAN CALC SIMPLE.
FROM SOME. IF YOU SOLVED ENTIRE
PROBLEM DIVEST FROM EVERYTHING
THAT HAS. A CARBON. THERE'S
REALLY PLACE HELP TO BE BEST FOR
THEM POINTS. SO AND THAT WAS ONE
OF THE- SHAREHOLDERS. I BELIEVE
J. ANSWER. OUR AN EXAMPLE A
SHAREHOLDER ACTIVITY WE NEED
THAT WE HAVE SOME. SIGNIFICANT
IMPACT AND THAT WAS WITH OXYGEN
AND SAY ALSO IT'S ON SOME OF OUR
ENGAGEMENT AND- PROXY AND
VOTING. AND WITH EXXON AND
GETTING THE CLIENTS I WILL BE
GETTING A CLIMATE SCIENTIST ON
THAT BOARD. AND WE FOUND THAT
MOST OF THE PUBLIC COMPANIES BUT
WE ARE ENGAGING FOR CLIMATE
ACTION ONE HUNDRED PLUS HAD MADE
A COMMITMENT TO CANCER. FIFTY
WHAT IS CHANGING TO CATEGORY
NEED THAT DATE I WOULD MORE
TRANSPARENCY AROUND THAT
EMISSION DATA SO THAT WE CAN BE
MORE FORCEFUL AND NAVIGATIONAL
BE MORE ACCOUNTABLE. FOR HOLDING
MORE MORE ACCOUNTABLE NOT
ENGAGEMENT SO THAT'S SOMETHING
WE'RE- CONTINUING TO PUSH ON THE
S. E. C. YOU KNOW WE'RE-
INVESTING LOCALLY WILL PUSH ON
THAT I. R. S. AND THAT. YOU KNOW
YES SHE REALLY HAS BECOME MORE
AND A SUSTAINABLE INVESTMENT
STRATEGY LONGER TERM ABORTING
TRYING TO. FIX IT WE CAN'T AVOID
AND SHORT TERM. ISSUES AS MUCH
AS POSSIBLE OBVIOUSLY SEARCH
ENGINES WILL ADDRESS THAT WHERE
WE CAN ENGAGE IN ACTION PATTERNS
AND GAUGE OF WHAT ACTUALLY
HAPPENED OUTCOME THAT WE'RE ALL
TRYING TO GET TO WORK. ON THE
ALBUM SOMETIMES A DISAGREEMENT
IS REALLY ABOUT HOW TO GET TO
THAT OUT TOGETHER AND THAT'S
WHERE. WE'RE EXTENSIBLE WILL
MEET WITH OUR STAKEHOLDERS WILL
EXPLAIN THE SHIP WAR. AND REALLY
TALK ABOUT WHY AND THE DECISIONS
THAT WE'RE MAKING FOR THE PART
BUT WE ARE IN THE BEST INTEREST. ON ALL TWO MILLION MEMBERS.
THE END AND HER TEAM WERE USING
IS POSTED ON THE WEBSITE- MOST
OF US HAD- BUT HAND OUT OF THE
CITY OF SLIDES- BUT THE MEMBERS
OF THE PUBLIC CORE LISTENING IN
WATCHING- GO TO THE TAB THAT
SAYS. HEARINGS TWENTY TWENTY TWO
. EARRINGS TWENTY TWENTY TWO ON
THE WEBSITE- YOU CAN ACCESS- THE
PRESENTATION THAT WAS JUST- GONE
THROUGH IT AND PERHAPS IT MAY
HELP ADDRESSING QUESTIONS THAT
YOU MIGHT HAVE BEFORE THE END OF
THE HEARING THANK YOU KNOW BACK
TO THE MEMBERS SOME. OF THE
COMMITTEE'S ADDITIONAL QUESTIONS
AT THIS TIME. RIGHT SEEN NONE OF
FROM THE EMBERS LET ME JUST.
ASK- A RISK QUESTION THE MISS
ROSS THERE'S ANY NUMBER OF
QUESTIONS- I SUPPOSE A WEEK WE
COULD- ASK YOU IN TERMS OF
GETTING- EVEN MORE DETAIL IN ON
SOME OF THE THINGS THAT YOU TALK
ABOUT GIVEN THE MAGNITUDE OF THE
WORK THAT YOU'RE DOING BUT JUST
I'M JUST GOING TO LIMIT MYSELF
TO ONE QUESTION HERE ALSO IN THE
INTEREST OF TIME. ON CLIMATE-
CLEARLY. YEAH YOU'RE DOING A LOT
IN TERMS OF CONVENING FOLKS TO
CURLY YOU HE TALKED ABOUT. THE
OPPORTUNITY THERE WE HEARD FROM
THE GOVERNOR LAST NIGHT HIS HIS
TAKE ON. ON THE ECONOMIC
OPPORTUNITY- IN IN THAT
PARTICULAR AREA OF THE ECONOMY
IN THAT SPACE WHAT ABOUT THE
RISK- WHAT IS IT WHAT IS THE
RISK OF. THE CLIMATE CRISIS
ITSELF. ON TO. YOUR INVESTMENTS
TO THE PENSION FUNDS
INVESTMENTS. WHERE DO YOU I
ASSUME THAT YOU TRACK THAT-
WHERE THE GREATEST THREATS IS
IT. IS IN THE REAL ESTATE SPACES
AND SOMEWHERE ELSE. HERE ARE THE
QUESTIONS THAT WE ARE- RECENTLY
INCIDENTS ONLY WITHIN THE LAST
YEAR AND DID THE REPORTS ARE
WHICH IS BASICALLY A STANDARD
FRAMEWORK FOR UNDERSTANDING THE
CARBON BUT WHEN YOU ARE PROBABLY
OUT OF THE TEACHING IT TO YOUR
ACCOUNTS OF COURSE REQUIREMENTS
AND FINANCIAL DISCLOSURES AND
YOU KNOW STEP ONE STEP TWO WHICH
ARE THE DIRECT EMISSIONS ARE
COMING FROM POSSIBLE CONFUSION
IF YOU ARE. NOT REPRESENTS ABOUT
20% OF OUR VOCALS AND REMAINING
80% OR SOMETHING IN THE STATE-
YEAH I JUST WAS AT A CONFERENCE
IN AND THE NUMBER THAT I NEED TO
BACK THE OTHER DAY BUT YOU KNOW
FORTY PERCENT. OF MUCH OF THE
CARBON EMISSIONS ARE BECOMING
FROM THE STATE AND THE LACK OF
CAPITAL EXPENDITURES GOING INTO
BUILDINGS AND- WE'RE VERY LONG
TIME CALIFORNIA JUST AROUND THE
GLOBE I AM BACK IN YORK I JUST
PUT IN LATER DECADES WE'LL START
FINDING THOSE COMPANIES ARE
THOSE BUILDINGS OWNERS OF THOSE
BUILDINGS ARE NOT LABELS CAPITAL
EXPENDITURE REMAINS CONNECTED
BUILDINGS MORE. EFFICIENT
SERVICE THERE'S THE SUBMISSIONS
ARE EVERYWHERE IN THE PORTFOLIO
JUST LOOK AT SOMEONE'S GOT TO
WHERE WE THINK WE HAVE DATA
INTEGRITY THAT'S ROUGHLY 20% OF
ITS PORTFOLIO OF REAL ASSETS
SIGNS INDICATING WE HAVE THAT
20% OF THAT PORTFOLIO INVESTED
WE MOVE ENERGY ASSETS AND ALL
THOSE LOOKING FOR THOSE
OPPORTUNITIES. TO INCREASE IN
THAT PORTFOLIO SIZE INTO THE
BELIEF THAT WE HAVEN'T SEEN
SITTING AT THE TABLE WITH HIS
COMPANY AND SITTING AT THE TABLE
WHERE LIKE MINDED INVESTORS AND
WE WILL FINANCE OPPORTUNITIES I
MEAN AVAILABLE TO LAST YOU
INVEST IN THIS TRANSFORMATION
AGAIN THIS TRANSFORMATIONS. YOU
HAVE TO BE IN. I TO IDENTIFY
THEM AND WE JUST DON'T BELIEVE
AND I TELL YOU. OF THAT WORLD
INSTITUTE AND- I NOT HAVE THE
BEST INSTRUMENT AND HOW SEEN IN
STRAY- AND REALLY. DEVELOPING
OUT THAT'S HOW ON YOUR DESK
TEAM. HERE FOR. GET DATA AROUND
THE HOUSE GAS EMISSION WERE
BORN. I AM EQUITY NOW IT'S- THAT
DIDN'T HAVE THE BUSINESS OUT. TO
BE ABLE TO SAY YEAH THIS MAKES
SENSE THIS WILL GET US TO OUR
HARDER. OCCIDENTAL THESE TYPES
OF MEASUREMENTS IN THE SECTOR
WILL GET US TO THAT NEXT YEAR
WILL BE TWENTY FIFTY OR SOONER.
AND THAT'S WHEN WE GOT TALENT
MANAGEMENT TALENT RECRUITMENT
THAT'S THE NEXT SET OF
AGREEMENTS. THAT. WILL BE DOING
OUR BEST MARKETS. SHE DOES IN-
IN ORDER RESPONSE I THOUGHT WAS
ABOUT HIM JUST TELL WASN'T. AND
DIVESTMENT AND ALMOST THE
PORTFOLIO IS INVESTED IN- IN
ASSETS THAT- WHERE MISSIONS ARE
PRESENT I THINK WHAT I WAS
REALLY ASKING MAYBE IS- THE. THE
UNINTENDED OUTCOMES OF CLIMATE
CHANGE IF YOU WILL WHAT WE'RE
SEEING YOU KNOW HERE IN
CALIFORNIA OBVIOUSLY TO SOME
DEGREE HAPPENING ALL OVER THE
WORLD THOSE THINGS THAT ARE
ATTRIBUTED. TO CLIMATE I'M JUST
WONDERING WHAT YOUR RISK
ANALYSIS IS IF YOU HAVE ONE AND
I CAN TAKE THAT OFF LINE WE
DON'T NEED TO GO IN INTO A DEEP
DIVE ON THAT HERE TODAY. TO WHAT
DEGREE YOU'RE EVALUATING RISK
WITH REGARD TO YOUR OWN
INVESTMENTS IN ASSETS WITH
REGARD TO WILDFIRE WITH REGARD
TO SEA LEVEL RISE IN THE IN THE
BAY AREA- IN THE SOUTH BAY AREA
IN SILICON VALLEY- THE AREA I
REPRESENT MOST OF THE DRIVING
INDUSTRIES- SOME OF WHICH I KNOW
YOU'RE INVESTED IN- ARE
EXTRAORDINARILY CONCERNED-
ABOUT- SEA LEVEL RISE WHICH IS
BECAUSE BEEN SIGNIFICANTLY
MEASURABLE SO I'M I'M REALLY
JUST ASKING WHAT WHAT. WHAT IS
YOUR- WHAT WORK ARE YOU DOING TO
EVALUATE THAT KIND OF
CATASTROPHIC RISK IS A LITTLE
BIT DIFFERENT THAN. INVESTMENT
DIVESTMENT. OKAY I THINK FRANCE
OR WHATEVER THE TERM IS PROBABLY
STRANDED ASSETS YOU WILL GET A
LOT OF QUESTIONS AROUND WHAT
WHAT WOULD BE THE STRANDED
ASSETS INTO THESE TYPES OF
SCENARIOS IN THE PORTFOLIO
MAKING SURE TO GET MORE
INFORMATION ON THAT BUT I THINK
SPECIFICALLY TO YOUR QUESTION
WHAT ARE WE DOING AROUND
MANAGING RISKS TO SEA LEVEL RISE
OR WINE BUYERS WE RECENTLY JUST
COMPLETED SO I'LL HAVE MORE
INFORMATION FOR YOU SOON AT THIS
TIME DATA ANALYSIS IS NOT QUITE
COMPLETE YET. THAT WE PARTNERED
WITH AN OUTSIDE- MANAGER TO COME
UP WITH THE CONCEPT OF BREAST I
SO IN A REAL ESTATE PORTFOLIO OR
YOU KNOW AND BEYOND FRANKLY
WHERE DO WE SEE THE GREATEST ZIP
CODE RACE BASED ON WHETHER THAT
SINCE YOU HAVE ALREADY SEEN
WHETHER THAT MEANS YOU KNOW
NORTHERN CALIFORNIA FIVE TIMES
I'VE BEEN I'LL HAVE MORE
INFORMATION FOR YOU ON THAT
QUESTION DIRECTLY VERY SOON YEAH
AND JUST ASK. THE TOPLINE
INFORMATION YEP NOT A- YOU KNOW
THAT WE NEED TO. GET INTO. A
PROPRIETARY WE'RE IN OUR THAT
YOU'RE- BUT- HI DO IT WHICH
DOING- YOU KNOW HOW YOUR
CONVENING YOUR OWN YOUR OWN TEAM
AROUND THE- IF YOU HAVE. A LEAVE
BEHIND DOCUMENT FOR US AT SOME
POINT YOU CAN DISTRIBUTE TO THE
COMMITTEE. OF BOTH COMMITTEES
THAT WOULD BE APPRECIATED THANK
YOU VERY MUCH AND- WE DO HAVE
ANOTHER. QUESTION BY SOME MEMBER
O'DONNELL. YES SIR THANK YOU
MISTER CHAIR. AND I DO YOU MAY
HAVE MENTIONED IT I DON'T KNOW I
HEARD IT CLEARLY. AT WHAT
PERCENT- IS PURSE FIND IT RIGHT
NOW. WELL FUNDED 80% AS OF JUNE
THIRTIETH OF TWENTY ONE WHICH
WAS THE LAST TIME. I WAS A
LITTLE BIT AND YOU SAY EIGHTY
EIGHT ZERO. ZERO GREAT THANK YOU
AND MAYBE JUST A COMMENT I HOPE
YOUR BOARD FULLY ENGAGES IN
STATE LEGISLATION. I MEAN YEAH
AND EVERY YEAR WE GET A NUMBER
OF DIVESTMENT BILLS AND THOSE
CONCERNED ME. IT SHOULD BE
REALLY THE ROLE OF THE BOARD. TO
DESIGN THE INVESTMENT STRATEGY
OF THE DOLLARS THAT YOU ARE
RESPONSIBLE FOR MEMBER THOSE
PEOPLE'S RETIREMENT MONEY. I'M
ACTUALLY A MEMBER OF STIRS
ENTERS- SO I DO HAVE GREAT
CONCERNS WHEN PEOPLE JUST THROW
DIVESTMENT BILLS AND IT'S OFTEN
MORE OF A POLITICAL VENDETTA
POLICY EVENT. BUT AT THE SAME
TIME I WANT YOU TO BE SOCIALLY
RESPONSIBLE WITH THESE DOLLARS
BUT NOT NECESSARILY. FISCALLY
RECKLESS SO I GET GOING FOR A GO
FORWARD BASIS I HOPE THAT YOUR
BOARD TAKES POSITIONS ON BILLS
ETCETERA. BECAUSE THEY DO NEED
TO INFORM THE LEGISLATURE AS TO
THE IMPACTS. OF THE BILLS THAT
THAT PEOPLE- SPONSOR AND WISH
TO. WISH TO PUSH THROUGH THE
LEGISLATURE AND SOMETIMES
RESTRICT. YOUR ABILITY TO INVEST
THE FUNDS IN THE IN THE BEST
PLACES AGAIN I WANNA BE SOCIALLY
RESPONSIBLE. BUT AT THE SAME
TIME. WE ALSO NEED TO LET THE
BOARD DO ITS JOB THANK YOU.
THANK YOU SO MUCH MEMBER- THIS
FOR US- THANK YOU VERY MUCH FOR
YOUR AGAIN FOR YOUR TIME- GREAT
JOB GETTING THAT. PRETTY MASSIVE
PRESENTATION DONE WITHIN
GENERALLY WITHIN OUR TIME
CONSTRAINTS HERE APPRECIATE THAT
VERY MUCH. IN WE WILL. THERE IS
ONE MORE QUESTION YES SOME SORRY
I'M I'M MAY DEPEND DEBATING
WHETHER ASK QUESTION HERE NOT A
PROBLEM NOT A PROBLEM PLEASE
PROCEED OKAY SO IN OUR PORTFOLIO
WE MAKE A 21% RATE OF RETURN
LAST YEAR DO WE HAVE DIFFERENT
CATEGORIES OF INVESTMENTS THAT
WE CAN TRACK WHAT THE
PERCENTAGES OF RATE OF RETURN
ARE IN EACH OF THOSE- THOSE
DIFFERENT CATEGORIES SO THAT WE
KNOW WHAT PORTFOLIO IS- IS.
PERFORMING WELL AND WHAT
PORTFOLIO WAS NOT BECAUSE AT THE
END OF THE DAY WHAT A LOT OF
TAXPAYERS ARE CONCERNED ABOUT.
IS THAT WHEN THE- COSTS FOR THE
SYSTEM. OUTWEIGH THE REVENUES
WHICH IS THE RATE OF RETURN IS
THE BEST REVENUE. WELL THE- IF
IT TRICKLES DOWN THEY WIND UP
PAYING MORE. SO HOW ARE THOSE
DIFFERENT PORTFOLIOS PERFORMING
WHAT'S THE STRONGEST PORTFOLIO
AND WHAT'S THE WEAKEST ONE OF
THE PERCENTAGES. THAT DAY- THEY
ARE PERFORMING AT. MISS ROSS-
MAYBE YOU CAN GIVE US ON THE TOP
LINE RESPONSE TO THAT AND THEN
PERHAPS IS ANOTHER AREA WHERE
YOU COULD GET- I'M SURE YOU HAVE
THE INFORMATION THEY DISTRIBUTED
TO- THE FOLKS- YOU KNOW ON A
MORE OF A WHOLESALE BASIS SO YOU
GET TO US AS WELL THANK YOU.
THANK AT A TOP LEVEL WE DO TRACK
PERFORMANCE BY VARIOUS ASSET
CLASSES NO BUT OUR GLOBAL EQUITY
PERFORMANCE MEANS IN ORDER TO
EXTEND CONTAINS PERFORMANCES
PRIVATE EQUITY AND REAL ESTATE
ASSETS AND SO ON THAT IS
REPORTED OUT ON EVERY QUARTER
AND SIGNED HIM ON A WEBSITE THAT
I WILL READ A SHEET THAT SHOWS
YOU THAT PERFORMANCE OVER TIME
THE BEST PERFORMING ASSET CLASS
OVER TIME IS PRIVATE EQUITY
DEPENDING ON WHAT'S HAPPENING
WITH WITHIN THE MARKETS. AND
YOUR BOTTLE AT ME TODAY THEY'RE
GOING TO VERY OVERTIME BUT BY
FAR THE ASSET CLASS AND
PERFORMANCE- PRODUCES THE
HIGHEST. RATING TERM IS
PRIVATELY. THANK YOU THANK YOU
MISS ROSS THEN A IF WE COULD
ASSESS- THAT YOU DISTRIBUTE TO
EACH. A MEMBER OF EACH OF THE
TWO COMMITTEES TODAY- WE WOULD
BE VERY GRATEFUL FOR THAT IN
AGAIN GRATEFUL FOR YOUR- YOUR
OVERVIEW TODAY IN YOUR
PRESENTATION HERE THANK YOU OKAY
. BUT WE WILL NOW MOVE ON TO
BUBBLE WILL BE OUR THIRD
PRESENTATION TODAY AND THAT IS-
FROM REPRESENT IS THE STATE
ASSOCIATION OF COUNTY RETIREMENT
SYSTEMS WE HAVE WITH US TODAY
MISTER ERIC STERN CEO OF THE
SACRAMENTO COUNTY RETIREMENT
SYSTEM AND MR DAVID NELSON CEO
OF THE ALAMEDA COUNTY RETIREMENT
ASSOCIATION- REPRESENTING THAT
SYSTEM- WELCOME MISTER SHARON.
MR NELSON AND YOU MAY PROCEED.
THANK YOU CHAIR. AND CHAIR
COOPER MEMBERS OF BOTH
COMMITTEES WERE VERY HAPPY TO BE
HERE TODAY TO REPRESENT WERE
COMMONLY CALLED THE SAKHIR
SYSTEMS- ALL OF US HAVE JOINED
THE STATEWIDE ASSOCIATION OF
COUNTY RETIREMENT SYSTEMS. AND
WORK TOGETHER FOR THE GREATER
GOOD OF ALL OF OUR COUNTIES. IN
THAT ORGANIZATION JUST SOME
BACKGROUND INFORMATION BEFORE WE
GET INTO SOME OF THE CHALLENGES
THAT ARE AFFECTING COUNTY
SYSTEMS- YOU KNOW THAT THE LAW
THAT WAS PASSED IN NINETEEN
THIRTY SEVEN THAT WARMS THE
ABILITY FOR ALL OF OUR SYSTEMS
TO- BE. ARMED THATLAWS CHANGED
A NUMBER OF TIMES OVER THE YEARS
AND ACTUALLY SOME OF THAT WATER
IS CHANGED FOR SOME OF THE-
INDIVIDUAL COUNTIS WITHIN THAT
SO. EVEN THE YOU KNOW THE
GOVERNING STRUCTURE OF OUR
COUNTY SYSTEMS IS ALWAYS NOT
ENTIRELY MATSON'S. ADDITIONALLY
EACH. GOVERNED BY INDEPENDENT.
BOARDS CONSISTING OF LOCAL
ELECTED LOCALLY APPOINTED. WE
HAVE A GREAT DIVERSITY OF
THOUGHT AND POLICY AND
PHILOSOPHY AMONG THOSE TWENTY
SYSTEMS THROUGHOUT THE STATE- AS
WE SAID TWENTY COUNTIES OF
ESTABLISHES SOME BUT THERE ARE
ALSO A NUMBEROF LOCAL
GOVERNMENT. EMPLOYERS WITHIN
THOSE COUNTIES THAT HAVE JOINED
OUR SYSTEMS AS WELL- SO WE
REPRESENT NOT ONLY TWENTY
COUNTIES BUT A NUMBER OF LOCAL
SYSTEMS AS WELL ONE OF OUR
SMALLEST COUNTIES MENDOCINO
CERTAINLY OUR LARGEST. IS LOS
ANGELES COUNTY WHICH REPRESENTS
ABOUT A THIRD OF OUR TOTAL
MEMBERS AND TOTAL ASSETS UNDER
MANAGEMENT. WE DO COLLECTIVELY
REPRESENTS. JUST A LITTLE UNDER
FIVE HUNDRED AND FIFTY THOUSAND
MEMBERS AND RETIREES. AND WE
HAVE COLLECTIVELY OVER TWO
HUNDRED AND SIX BILLION IN
ASSETS UNDER MANAGEMENT- WHEN
LOOKING AT THE FUNDING STATUS
BUT THE COUNTY SYSTEMS THERE IS
DIVERSITY BUT ALL TAKEN
TOGETHER. WE ARE A MARKET VALUE
BASIS JUST UNDER 90% SO A LOT OF
OUR SYSTEMS ARE IN A VERY SOLID
FUNDING POSITION WE EVEN HAVE
TWO OF THEM. THAT ARE OVER. A
100% SO NOW WE'LL MOVE ON TO
SOME OF ITS- FACING OUR SYSTEMS
AND WE'LL TAKE A- GOOD MORNING
I'M- SORRY THE PRESS THE
PRESENTATION DAVE AND I WILL BE
TAKING TURNS GOING THROUGH-
GOING THROUGH THE SCIENCE. IT IS
ONE ISSUE THAT WE WANTED TO JUST
TOUCH ON WAS REALLY RELATED TO
THE- PANDEMIC AND AS WE GROW OUT
OF THAT. AS YOU KNOW LABOR LABOR
ISSUES- LABOR SHORTAGE ISSUES-
REMOTE STAFFING ISSUES THAT
WE'RE ALL DEALING WITH THAT WE
SEE IN ALL ALL SORTS OF
INDUSTRIES WERE NOT IMMUNE TO
THAT AS WELL AS WE- RETURN TO
WORK THE RETIREE RETURN TO WORK
ROLES OR SOMETHING I JUST WANT
TO PUT ON THE RADAR OF- OF BOTH
COMMITTEES. WITH WITH TAPPARA
BACK IN TWO THOUSAND THIRTEEN
THERE A LOT OF NEW RESTRICTIONS
PUT INTO PLACE TO PREVENT DOUBLE
DIPPING THOSE THE CONSENT VERY
GOOD AT. POLICY REASONS BEHIND
THAT SOME OF THOSE RULES WERE
SUSPENDED DURING THE PANDEMIC TO
DEAL WITH LABOR SHORTAGES
THEY'VE BEEN OFF AND ON OVER THE
LAST YEAR- AND THEY'RE NOW BEING
THOSE RESTRICTIONS ARE BEING
REMOVED IT IS IT IS AN AREA. OF
INTEREST THAT WE HAVE AND I
WOULD DEFINITELY RECOMMEND THAT
THE LEGISLATIVE COMMITTEES OF
THE ADMINISTRATION. THAT TAKE
ANOTHER LOOK AT IT HOW THOSE
RULES ARE WORKING AND- MAYBE A
BETTER LONG TERM A LONG TERM
SOLUTION. AS WE CONTINUE TO DEAL
WITH LABOR SHORTAGES. IN THE
GOVERNMENT AND- JUST REAL
BRIEFLY ONE OF THE ISSUES YOU
KNOW ONE OF THE THINGS WE
LEARNED DURING THE PANDEMIC
THERE WERE SOME RESTRICTIONS
WITHIN THE OPEN PUBLIC MEETING
LAWS THAT APPLY TO OUR SYSTEMS
THAT WERE LIFTED AND WHAT WE
FOUND MANY OF OUR SYSTEMS OF
SOUND IS THAT DURING THE
PANDEMIC WE'VE SEEN THE
UTILIZATION OF THESE VIRTUAL
MEETING TECHNOLOGY. GREATLY
INCREASED ONLY OUR PUBLIC
PARTICIPATION BUT IS ALSO
INCREASE THE ABILITY OF OUR OWN
BOARD MEMBERS TO PARTICIPATE ON
A REGULAR BASIS- REGARDLESS OF
WHERE THEY ARE AND SO WE JUST
WOULD ENCOURAGE LEGISLATURE
DEPENDENCE A NUMBER OF BILLS
THAT HAVE BEEN LOOKING AT- THOSE
OPEN. PUBLIC MEETING LAWS TO
PERHAPS. CORPORATIONS THE
ADVANTAGES AND SOME OF THE
BENEFITS THAT THE NEW TECHNOLOGY
WILL ALLOW FOR BOTH PUBLIC AND
STAKEHOLDER ENGAGEMENT. IN. SO
IT ISSUE THAT'S UNIQUE TO THE
COUNTY RETIREMENT SYSTEMS- HAS
TO DO WITH US CALIFORNIA STATE
SUPREME COURT DECISION THAT CAME
DOWN IN THE SUMMER OF TWENTY
TWENTY. AND THIS WAS- IN THE
AFTERMATH OF PEPPER IN TWO
THOUSAND THIRTEEN SOME
LITIGATION THAT- THERE WAS A
THERE WAS A FOLLOW UP ON- ACROSS
THE STATE WITH A DIFFERENT
COUNTY SYSTEMS THAT DO NOT
IMPACT- CALPERS ARE CASTERS BUT
IT'S REALLY JUST FOCUSED ON THE
COUNTY RETIREMENT SYSTEMS.
DEALING WITH WHAT SORT OF
TALENTS ARE INCLUDED AND ENGINE
CALCULATIONS TO UNDERGRAD-
PENSION SPIKING. THOSE CASES
WERE ADJUDICATED OVER OVER A
YEAR PERIOD. RULING CAME DOWN IN
THE SUMMER OF TWENTY TWENTY-
THIS AFFECTED ABOUT HALF THE
RETIREMENT SYSTEMS IT'S CALLED
THE ALAMEDA DECISION BECAUSE
ALAMEDA WAS THE LEAD- THE
DEFENDANT. IN THAT CASE IT'S
REQUIRED A LOT OF MODIFICATIONS
TO PENSION CALCULATIONS-
CONTRIBUTION RESPONSE PENSION
ADJUSTMENTS ACROSS THE WHOLE
STATE WITH THAT WITH SEVERAL
SYSTEMS INCLUDING- MINE IN
SACRAMENTO COUNTY- ONE OF THE
ONE OF THE ISSUES THAT WE'RE
FOLLOWING THE LEGISLATURE
THERE'S BEEN SEVERAL BILLS HAVE
BEEN INTRODUCED OVER THE LAST
YEAR THAT MIGHT UNDO CERTAIN
ELEMENTS OF THAT. YOU KNOW THE
COURT RULED THAT KEPT THAT PAPER
WAS CONSTITUTIONAL WE ALL ARE
COMPLYING WITH THAT COURT
MANDATE TO. TO BE IN COMPLIANCE
WITH- FAIR UNIFORMED G.
CALCULATIONS ACROSS THE STATE SO
ANY ANY YOU KNOW LEGISLATION
THAT MIGHT UNDO THE COURT
DECISION IS SOMETHING WE'RE
WATCHING REALLY CLOSELY IT CAN
REQUIRE. SIGNIFICANT WORKLOAD ON
OUR END WE'RE VERY SMALL SYSTEMS
WITH MUCH MORE STAFF TO HER
SISTERS HAVE- COULD RE REALLY
REQUIRE. A LOT OF HEADACHES MORE
LITIGATION AND WE JUST REALLY
LIKE TO GET. THESE ISSUES
RESOLVED AS QUICKLY AS POSSIBLE.
AS WE- MANY PARTS ARE IN GOOD
BUT INSTEAD AND YOU HATE EVEN
RECORD. THAT THERE IS PERHAPS
ANYTHING OTHER THAN POSITIVE
NEWS- FULL FUNDED STATUS. BUT
ONE OF THE THINGS I THINK WE'VE
ALWAYS SEEN AND NOTICE AND IT'S
NOT JUST YOU NEED TO CARRY. IT
AROUND THE COUNTRY. OFTEN WHEN
SYSTEMS FIND THEMSELVES IN A
SOLID FUNDING POSITION. THERE IS
POTENTIALLY PRESSURE TO LOOK AT
BENEFITS FUTURE PERHAPS TRYING
TO INCREASE BENEFITS AND WE KNOW
WE JUST WANT TO BE CAUTIOUS.
THESE FUNDED STATUSES ARE POINTS
IN TIME- AND THAT. PERHAPS
ADDING BENEFITS AT THE PEAK OF
THE MARKET- WILL CREATE DOWNSIDE
PRESSURE IN THE FUTURE IN TERMS
OF FUNDING. SO IT'S ONE OF THOSE
THINGS UNDERSTAND AND BE
GRATEFUL FOR- THE STATUS THAT
WE'RE IN BUT PERHAPS LOOKING AT
SHORING UP- FOR INSTANCE LONG
TERM INVESTMENT RETURN AND- THE
RISKING SOME OF OUR PORTFOLIOS.
MIGHT BE BETTER HOUSTON'S TO
UTILIZE. THAT FULL FUNDING.
REALLY LOOKING AT ENHANCEMENTS.
REAL THAT'S THE TOPIC OF THE DAY
THAT EVERYONE'S TALKING ABOUT
AIR POWER AND I JERKED ABOUT
SOME ISSUES AND THIS IS A THIS
IS A REALLY INTERESTING AREA FOR
THE SMALLER COUNTY RETIREMENT
SYSTEMS IN PARTICULAR BECAUSE-
WELL THE LEGISLATURE HAS- HAS
PROVIDED DIRECTION AND THE REST
OF BILLS OVER THE YEARS THE
COUNTY RETIREMENT SYSTEMS HAVE
BEEN- HAVE BEEN EXEMPT FRO
THOSE AND IS REALLY A POLICY
REASON IN A PRACTICAL
ADMINISTRATIVE REASON FOR THAT.
WE DO NOT MANAGE ASSETS
INTERNALLY IN OUR SYSTEM SO WE
WERE ALL EXTERNALLY MANAGED
ASSETS. ACROSS THE TWENTY
RETIREMENT SYSTEMS AND- WHAT
THAT MEANS IS THAT WE HIRE
MANAGERS- AND ENTERED A LIMITED
PARTNERSHIP AGREEMENTS. AND
LARGELY CO MINGLED FUNDS THAT WE
DON'T CONTROL- SO WE CHOOSE AND
WHICH IS AN INVESTMENT STRATEGY
HIRE A MANAGER. AND ALLOCATE
DOLLARS TO THAT MANAGER TO
INVEST IN OUR BEHALF. IN WHAT
THAT MEANS IS THAT WE DON'T HAVE
WE DON'T HAVE CONTROL OR MUCH
SWAY AND WHAT THOSE WITH THOSE
INDIVIDUAL ASSETS ARE THOSE YOU
KNOW WE DON'T BUY INDIVIDUAL
STOCKS SO. THAT MANAGERS DOING
THAT ON OUR BEHALF. AND SO IF WE
EVER WERE IN A SITUATION WHERE
WE WERE- REQUIRED OR OR DIRECTED
TO DIVEST ROM A SPECIFIC ISSUE-
WE COULD POTENTIALLY REQUIRES TO
TERMINATE THAT MANAGER WHICH
WHICH WOULD HAVE. BEEN A
SIGNIFICANT TRANSACTION COSTS
ASSOCIATED WITH THEM. IN ORDER
TO POSSIBLY YOU KNOW TO GET RID
OF A MILLION DOLLARS OVER TWO
HUNDRED MILLION DOLLAR
INVESTMENT MIGHT COST US. FIVE
HUNDRED THOUSAND DOLLARS
TRANSACTION COST ON WINE THAT
SO. THERE'S A VERY IN MINISTRY
TO PRACTICAL REASONS THAT THE
LEGISLATURE HAS- HAS HAS NOT
FOCUSED AS MUCH ON THE COUNTY
RETIREMENT SYSTEMS APPRECIATE
THAT DISCRETION. ENCOURAGE
LEGISLATURE TO KEEP KEEP THAT IN
MIND AS THESE ISSUES- IF YOU
NEED TO GET DISCUSSED AND
DEBATED. OVER THE OVER THE NEXT
YEAR. AND I THINK IT IT. YOU
KNOW THE ENTRANCE OF THE
QUESTIONS- CHAIR COOPER. WHEN
YOU LOOK AT HIS ERIC SAID YOU
KNOW THE BEST MEN'S HAS BEEN ONE
OF THOSE THINGS OVER THE TIME
THE BOARD SHOULD BE TAKEN
ACTIONS ON THEIR OWN- YOU KNOW
UNFORTUNATELY WE DON'T. HAVE ANY
COLLECTED INFORMATION ABOUT WHAT
THE BEST MAN ACTIONS MAY HAVE
OCCURRED OVER TIME POSSIBLE
IMPACT WHEN WE TALK ABOUT
STAKEHOLDER CHANGED AGAIN WITH
TWENTY BOARDS. FOR YOU KNOW
VARIOUS PHILOSOPHIES AND ACTIVE
. IT'S DESIGN WITH REGARDS
BASKIN YOU'RE GONNA BE A LOT OF
DIFFERENT. ACTIONS AS TO HOW
THEY THESE BOARDS TO ENGAGE WITH
OUR PARTNERS IF AT ALL WITH
REGARD TO THOSE THINGS AND THE
SAME WITH THE S. STREET. THERE
IS A WIDE DIVERSITY OF WHETHER
FOLKS ARE USING ESP HOW THEY'RE
USING AS TO WHAT THEY'RE LOOKING
AT. WHAT POLICIES THEY MAY OR
MAY NOT HAVE WITH REGARD TO THE
ISSUE SO IT'S NOT A MARGIN IS
ACROSS OUR TWENTY SYSTEMS IN ANY
SIGNIFICANT WAY. IN ANY SORT OF-
FOLLOW ON TO A QUESTION TO
MISTER COOPER HAD. ABOUT THE
ROLE THAT WE HAVE A SHAREHOLDERS
IS THAT WE ARE WE ARE FEATURES
OF THE SIGN AND EVEN THOUGH
WE'RE WE WERE PASSIVE INVESTORS-
MANY OF OUR SYSTEMS TO USE-
PROXY VOTING SERVICES TO. TO
PARTICIPATING SHAREHOLDER
MEETINGS BUT TO A LARGE EXTENT
WE ARE- WE ARE PASSIVE
INVESTORS- REALLY TAKING OUR
FIDUCIARY OBLIGATIONS IS SORT OF
THE PRIMARY FOCUS- AND NOT
ENGAGING AS MUCH AND- SOCIAL
SOCIAL ISSUES. THAT CAN. THAT
CAN RANGE FROM DIFFERENT FUND OF
FUNDS. WE HAVE AN ANSWER ANY
QUESTIONS. THANK YOU VERY MUCH
THANKS FOR THE PRESENTATION
THANKS FOR DOING SUCH A CONCISE
JOB OF IT YOU'RE- THREATENING TO
KEEP GET US BACK ON TRACK YOUR
TIME WHY SO. THAT'S UNUSUAL IN
THESE CHAMBERS- YES AS A MEMBER
WITH ON YEAH I JUST A QUICK
COMMENT- IT KIND OF A YOU KNOW
IT'S- IT'S BUILT ON THE COMMENTS
MADE PREVIOUSLY ABOUT YOU KNOW
WHAT IS THE DIVESTMENT OF THE
DAY. AND I JUST DON'T BUY INTO
THE ARGUMENT THAT COUNTIES
SHOULDN'T BE SUBJECT TO A STATE
POLICY AS WELL- WHAT'S GOOD FOR
THE GOOSE IS GOOD FOR THE GANDER
IT'S BAD POLICY IT'S BAD POLICY
FOR EVERYBODY. SO FOR THE
COUNTIES TO MAKE A CASE THAT HEY
THEY'RE A LITTLE BIT DIFFERENT I
DON'T KNOW THAT I BUY INTO THAT
WE DON'T NEED TO BE LITTLE HAT
ARGUMENT TODAY BUT I DON'T
NECESSARILY KNOW THAT I. I BUY
INTO THAT AGAIN THANK YOU MISTER
CHAIR. THANK YOU PERSONAL
FINANCE. ANY OTHER. QUESTIONS OR
COMMENTS. TO THIS PANEL- THE-
SEEN NONE. FROM THE FLOOR LET ME
LET ME JUST ACTUALLY. PICK UP
ON- WERE SOME MEMBER OF PUT ON A
LEFT OFF BUT- MORE IN TERMS OF A
QUESTION PERHAPS IN A COMMENT-
IN THIS CASE IT WOULD SEEM TO ME
THAT. THE FIRST ONE YOU JUST SAY
I UNDERSTAND YOUR CONCERNS ABOUT
DIVESTMENT- IN AND HOW THEY CAN
IMPACT THINGS BUT- SOMETIMES WE
HAVE SITUATIONS WHERE- THE WORLD
IS AT WAR OR- THE STATE HAS- IF.
FOR WHATEVER REASON FEELS AN
OBLIGATION TO. A TO MOVE AWAY
FROM CERTAIN INVESTMENTS I WOULD
ASSUME THAT YOUR CONTRACTS.
WITH- I'M HERE WITH WITH YOUR
INVESTMENT FIRMS HAVE. TYPICAL
THE WHOLE CLUB OWNER PLAY
LANGUAGE IN THAT SAYS THAT-
THEIR ACTIVITIES HAVE TO COMPORT
WITH STATE LAW OR THAT THE STATE
OF CALIFORNIA- MAY OR MAY NOT
ADOPT LAWS WHICH IMPACT THOSE
INVESTMENTS IT IS THAT THE CASE
OR NOT THE CASE. YES THERE ARE
YES OUR CONTRACTS AT ALL- BREAKS
POSSIBLY HAVE TO COMPLY WITH
CALIFORNIA OKAY GREAT IN IN I
DON'T WANNA BUT I ALSO DON'T
WANT TO. YOU KNOW PUSH ON THAT
ISSUE BUT- IT WOULD PROBABLY BE
HELPFUL AT SOME POINT FOR.
FUTURE REFERENCE I THINK OF FOR
US TO UNDERSTAND US BEING. THE
LEGISLATURE- IN. ALL ONE HUNDRED
TWENTY MEMBERS TO UNDERSTAND IF
THERE ARE ISSUES WITH REGARD TO
PHASING IN CHANGES THAT MAYBE
ARE MORE ACUTE WITH YOU I WAS
SUSPECT BECAUSE OF THIS
DIFFERENT SCALE THAT YOU'RE AT.
THEN THE FOLKS WE JUST HEARD
FROM FOR EXAMPLE CALPERS THAT
YOU MAY- HE CHANGES MAY. BE NOT
BE- MADE AS NIMBLY AS AS PERHAPS
SOMEBODY ELSE COULD DO WHERE
WERE IT'S A SMALL PERCENTAGE OF
THE PORTFOLIO BUTTON. YOU DON'T
HAVE TO COMMENT ON THAT I JUST
WANTED TO MAKE THAT MORE IS A
REQUEST FOR. YOU KNOW FOR FUTURE
INFORMATION- AS- AS SOON AS R.
O. OTHER OPPORTUNITIES IN THE
FUTURE EITHER IN THE STATUTORY
HEARINGS OR- MEMBER. CONTACTS OF
ONE ON ONES WITH MEMBERS OF THE
LEGISLATURE TO MAKE SURE WE
UNDERSTAND- WHEN CHANGES ARE
MADE- WHAT THE CRITICAL PATH IS
FOR YOU- THANK YOU AND I WANT TO
TURN TO A TEACHER COOPER NOW.
THANK YOU MR HERE'S A QUICK
COMMENT- THERE ARE. EIGHTY FIVE
DIFFERENT RETIREMENT SYSTEMS IN
CALIFORNIA FOR SCOOTERS SECOND
COUNTY- THEY DON'T HAVE RETIREE
MEDICAL. THURS DOESN'T PERS DOES
AND THAT'S DRIVES A LOT OF THOSE
COST IN THERE TO PAY FOR
RETIREES MEDICAL THAT THAT'S A
BIG ISSUE SO IT'S NOT APPLES TO
APPLES COMPARISON YOU EXIT
EIGHTY FIVE RETIRED MRS IN
CALIFORNIA SO VERY DIFFERENT IF
YOU NOTICE- IS FIVE HUNDRED
FIFTY THOUSAND. NINETEEN THIRTY
SEVEN ACTIVE EMPLOYEES AND
RETIREES NOT A NOT A BIG NUMBER
WHEN COMPARED TO STIRS A PURSE
THANK YOU MR THANK YOU
APPRECIATE THE CLARIFICATION OF
ONE MORE CALL FOR QUESTIONS-
FROM THE FLOOR SO TO SPEAK- SEEN
NONE- THANK YOU. GENTLEMEN VERY
MUCH FOR. YOUR PRESENTATION AND-
YOUR RESPONSE TO OUR QUESTIONS
WE'RE GOING TO MOVE TO OUR LAST
PRESENTATION FOR TODAY WHICH IS
BY THE CALIFORNIA TEACHERS
RETIREMENT SYSTEM COASTERS
REPRESENTED BY KASANDRA LOOK
SMART. AND CHIEF EXECUTIVE
OFFICER IN MR CHRISTOPHER AILMAN
CHIEF INVESTMENT OFFICER AND
JUST BEFORE- THE TWO OF YOU
BEGIN TO PRESENT LET ME- LET ME
JUST. MAKE MY ANNOUNCEMENT ONE
MORE TIME FOR MEMBERS OF THE
PUBLIC- ASSUMING SO PEOPLE MIGHT
BE TUNING IN- TUNING OUT- IF YOU
WANT TO FOLLOW ANY
PRESENTATIONS. ON OUR WEBSITE GO
TO THE WEBSITE AND THEN LOOK AT
THE TAB THIS- HEARINGS HEARINGS
TWENTY TWENTY TWO THAT WOULD BE
THE TAB ON THE WEBSITE. WHERE
YOU CAN SEE. ANY OF THE
MATERIALS THAT ARE BEING
PRESENTED TO US TODAY THANK YOU
AND NOW TO OUR PRESENTERS PLEASE
PROCEED. GOOD MORNING ARCHER'S
PARTIES IN COOPER MEMBERS OF THE
COMMITTEE I'M BECAUSE ANDERLECHT
NOT THE CHIEF OPERATING THE
CHIEF EXECUTIVE OFFICER AT CAL
STARS I WAS. JUST APPOINTEDTO
THE POSITION- ON JULY FIRST OF
TWO THOUSAND AND TWENTY ONE AND
I WAS PREVIOUSLY THE CHIEF
OPERATING OFFICER CASTERS- WHICH
IS WHY I'M STILL USING THAT
TITLE. SOME OF THE TIMES.
ACCOUNT SERVICES THE LARGEST
EDUCATOR ONLY RETIREMENT SYSTEM
IN THE NATION AND WE PROVIDE
RETIREMENT DISABILITY AND
SURVIVOR BENEFITS TO CALIFORNIA
EDUCATORS AND THEIR FAMILIES WE
DO NOT PROVIDE. MEDICAL CARE IN
RETIREMENT SO I JUST WANTED TO
CORRECT THAT THOSE- RETIREE
HEALTH CARE BENEFITS ARE
ACTUALLY NEGOTIATED AT THE LOCAL
LEVEL FOR TEACHERS- SO THAT IS
DIFFERENT THAN HAT CALPERS
ADMINISTERS. I WANT TO EMPHASIZE
THE IMPORTANCE OF OUR BENEFIT TO
OUR CALIFORNIA PUBLIC EDUCATORS
OUR MEMBERS DO NOT PARTICIPATE
IN SOCIAL SECURITY FOR ANY OF
THE CASTERS COVERED EMPLOYMENT.
AND WITH THE CAREER LONGEVITY OF
OUR MEMBERSHIP OUR MEMBERS RELY
UPON- BENEFIT AS THE MAJORITY IF
NOT SOLE SOURCE OF INCOME IN
RETIREMENT. WE TAKE THAT
RESPONSIBILITY SERIOUSLY AN
ADMISSION DRIVES EVERY DECISION THAT WE MAKE AS AN
ORGANIZATION. A FEW YEARS AS
PROBABLY KNOW THE FUN WAS
PROJECTED TO RUN OUT OF ASSETS
IN ABOUT THIRTY YEARS BUT-
BECAUSE OF OUR CULTURE SPENDING
PLAN THAT WAS ADOPTED IN. TWENTY
FOURTEEN. CASTERS AS FINANCIALLY
STRONGER AND BETTER POSITIONED
TO ACHIEVE FOR FINDING. THE
FUNDING PLAN INCREASED COMP
CONTRIBUTIONS AMONG THE PROGRAMS
THREE COM CONTRIBUTORS CASTERS
MEMBERS EMPLOYERS IN THE STATE.
AND IN FACT CASTERS IS AHEAD OF
SCHEDULE AND ITS GOAL OF
REACHING FULL FUNDING BY TWENTY
FORTY SIX THE TARGET DATE
ESTABLISHED IN OUR FUNDING PLAN.
THE SUPPLEMENTAL PAYMENTS MADE
TO THE STATE THE LAST FEW YEARS
TO REDUCE ITS SHARE OF THE
CASTERS UNFUNDED LIABILITY.
COMBINED WITH THE TWENTY SEVEN
POINT 2% INVESTMENT RETURN THAT
WE EARNED LAST YEAR. PUT CASTERS
ON A PATH THAT COULD LEAD US TO
FULL FUNDING PRIOR TO THE TWENTY
FORTY SIX TARGET DATE. AND THE
STATE COULD ACTUALLY FULLY
ELIMINATE THEIR SHARE OF THE
CULTURES AND FUNDED LIABILITIES
IN THE NEXT. TWO TO THREE YEARS.
THE KIOSK OF THE FUNDING PLAN IS
THE LIMITED RATE SETTING
AUTHORITY THAT PROVIDES THE
BOARD. TO ADJUST THE STATE AN
EMPLOYER CONTRIBUTION RATES AND
THIS ALLOWS CASTERS TO RESPOND
TO ECONOMIC CONDITIONS AND
BETTER POSITIONS US TO TEACHING
FOR FUNDING. BUT THERE ARE RISKS
THAT REMAIN- AS WE ARE
MONITORING THE FUNDING PLAN THAT
COULD PREVENT US FROM REACHING
THE FULL FUNDING. AND THE MOST
SIGNIFICANT THREE I'M GOING TO
SPEAK ABOUT- BRIEFLY. THE FIRST
IS THE LONGEVITY RISK. THE CODE
NINETEEN PANDEMIC HAS IMPACTED
ALL THREE OF THE WRIST IN
DIFFERENT WAYS. AND IS LIKELY TO
CONTINUE TO IMPACT THESE RISKS
ON THE SHORT TERM- AS AN END AS
WELL AS A LONG TERM. THE
LONGEVITY RISK REFERS TO THE
POTENTIAL THAT MEMBERS LIVE
LONGER THAN ANTICIPATED.
RESULTING IN THE NEED FOR THEIR
LIFETIME BENEFIT TO COVER A
LONGER PERIOD THAN EXPECTED.
LIVING LONGER FOR RETIREMENT
SYSTEM NEEDS PAINTWORK AND
BENEFITS. AND ON THAT FRONT
CASTERS IS UNIQUE OR TEACHERS
ENJOY A LONGER LIFESPAN THAN THE
AVERAGE PERSON IN CALIFORNIA.
AND IN THE UNITED STATES. A
FEMALE CASTERS TEACHER LIVES ON
AVERAGE TWO TO THREE YEARS
LONGER THAN THE AVERAGE WOMAN
LIVING IN CALIFORNIA AND FIVE TO
SIX YEARS LONGER. THAN THE
AVERAGE U. S. WOMAN. AND WITH
72% OF OUR CAL STIRS MEMBERS
BEING WOMEN. THIS LONGEVITY
CORRELATES WITH THE MAJORITY F
OUR MEMBER POPULATION. JUST TO
PUT IT IN PERSPECTIVE WE
CURRENTLY HAVE FOUR HUNDRED AND
TEN MEMBERS THAT ARE OVER THE
AGE OF ONE HUNDRED. IN OUR
SYSTEM WITH OUR OLDEST RETIRING
BEING ONE HUNDRED NINE YEARS OF
AGE SO YOU CAN SEE THE
SIGNIFICANT IMPORTANCE THAT
THERE FOR NOW. FINANCIAL
SECURITY. AND OUR RESPONSIBILITY
FOR THEM TO MAINTAIN A FINANCIAL
SECURITY- IS CORE TO WHAT WE DO.
THE COVER NINETEEN PANDEMIC ADDS
EXTRA CERTAINTY TELSTRA'S
PROJECTIONS OF THE LIFE
EXPECTANCY AND IT'S REALLY NOT
CLEAR WHETHER. THE PANDEMIC WILL
HAVE LONG TERM OR SHORT TERM
IMPACTS ON MORTALITY. AND REALLY
NOT KNOW THIS FOR THE- NEXT
SEVERAL YEARS. BUT SINCE THE
BEGINNING OF THE PANDEMIC
CASTERS IS ALSO SEEN A DECLINE.
OF MORE THAN TWENTY THOUSAND AND
THE NUMBER OF ACTIVE MEMBERS WHO
PARTICIPATE IN THE DEFINED.
BENEFIT PROGRAM. THIS WOULD N.
AS IN. INACTIVE MEMBERS HAS BEEN
. TO LOWER. EXPECTED GROWTH RATE
OVER THE- TWO YEARS AND THIS
ISN'T UNIQUE TO CALIFORNIA WE'RE
SEEING THIS- ACROSS THE NATION
THAT THE- THAT THE PAYROLL
GROWTH AND- ACTIVE MEMBERSHIP IN
THE TEACHER POPULATION IS
CONTINUING TO DECLINE. ALSO
CONTRIBUTING TO THE DECLINE IN
ACTIVE MEMBERSHIP WITH A HIGHER
THAN EXPECTED RETIREMENTS IN THE
TWENTY TWENTY TWENTY TWENTY ONE
FISCAL YEAR. ADDITIONALLY RECENT
DECLINES IN THE NUMBER OF
CHILDREN ENROLLED IN THE CATER
TWELVE PUBLIC SCHOOLS. AS WELL
AS THE PROJECTED DECLINE IN
FUTURE MOMENTS MAY RESULT IN A
NEED FOR FEWER TEACHERS IN
CALIFORNIA. AND THIS COULD
FURTHER IMPACT THE NUMBER OF
ACTIVE TEACHES TO PARTICIPATE
IN THE DEFINED BENEFIT PROGRAM.
SO THERE IS A GROWING CONCERN
RELATED TO THE LONG TERM PAIN OR
DYSFUNCTION OF THREE AND A HALF
PERCENT THAT IS USED IN THE
FUNDING OF THE SYSTEM. THE RULES
OF THE FUNNY PLAN AS WELL AS
THESE ISSUES AFFECTING PAYROLL
GROWTH COULD NEGATIVELY IMPACT
HOUSES ABILITY TO FOR FINDING
ADULTS REQUIRING CONTRIBUTION
RATE INCREASES ESPECIALLY. FOR
OUR EMPLOYERS. BUT OF ALL THE
RISKS PASTORS MONITORS
INVESTMENT RELATED VOLATILITY
REMAINS THE GREATEST RISK FACING
CONCERTS TODAY AND THIS IS
IMPORTANT BECAUSE- JUST TO
REITERATE WHAT DAVID LAMB OR-
HAD MENTIONED ABOUT SIXTY CENTS
COME. OF THE BENEFITS THAT WE
PAY COMES FROM INVESTMENT
INCOME. AND THE COMBINATION OF
CASTERS BEING A MATURE SYSTEM
EVER CREATED IN NINETEEN
THIRTEEN AND THE DECREASING TIME
FRAME OF THE FUNDING PLAN ONLY
SERVES TO EXASPERATED STRESS.
AND WHEN INVESTMENT RETURNS ARE
BELOW EXPECTATIONS THE UNFUNDED
ACTUARIAL OBLIGATION INCREASES
WHICH IN TURN REQUIRES
ADDITIONAL CONTRIBUTIONS TO
BRIDGE. THE GAP. BUT AS I
MENTIONED EARLIER LAST YEAR IS
TWENTY SEVEN POINT 2% INVESTMENT
RETURN HAS SIGNIFICANTLY CHANGED
THE OUTLOOK FOR FUNDING LEVELS
IN THE STATE CONTRIBUTION RATES
AND- REALLY ASSUMING THAT- THE
FUND EARNED 7% OVER THE NEXT TWO
YEARS. THE STATE SHARE THE
UNFUNDED OBLIGATION IS NOW
PROJECTED. TO BE ELIMINATED BY
TWENTY TWENTY THREE. ANOTHER
PART TOOL IN MY- THE PLAY ISN'T
SHE THE AXE. SOME THAT WE USE
OUR A PROBE WORKFLOW EXPO. OF
THE FUTURE. AND EVERY FOUR YEARS
PASTORS PERFORMS A FORMAL
REVIEW. OF OUR ACTUARIAL
ASSUMPTIONS AND THIS REVIEW WAS
DONE IN CONJUNCTION WITH THE
REVIEW OF OUR ASSET ALLOCATION.
WHICH IS HOW WE INVEST OUR
ASSETS AND THE CONTRIBUTIONS
THAT WE RECEIVE. THIS IS ONE OF
THE MOST IMPORTANT DECISIONS.
THAT ARE MORE TAKES ON EVERY
FOUR YEARS AND DIRECTLY IMPACTS
THE LONG TERM INVESTMENT RETURN
TURN ASSUMPTION ARE CURRENTLY
SET AT SEVEN PERCENT. THE BOARD
LAST REVIEW THE ADOPTION AND
ADOPTED THE ASTROS SOME SINCE
LAST JANUARY. JANUARY TWENTY
TWENTY. AND THE NEXT REVIEW
CYCLES OF WILL BEGIN NEXT FISCAL
YEAR TAKES APPROXIMATELY A YEAR
TO GET THROUGH THAT PROCESS. I
ALSO WANTED TO TOUCH ON ONE OF
THE- SPECIFIC ECONOMIC
ASSUMPTIONS USED IN THE FUNDING
OF CASTERS DEFINED BENEFIT.
PROGRAM AND THAT'S INFLATION AND
THAT WAS ONE OF THEM. COMMENTS
THAT WAS BROUGHT UP EARLIER IN
THE- HEARING TODAY IT'S AN
IMPORTANT SOMETHING THAT
IMPACTS- EXPECTED PAPER WORKS.
AND THE INCIDENT INVESTMENT
RETURN AND MORE IMPORTANTLY CAN
IMPACT OUR MEMBERS NEGATIVE
NEGATIVELY WE ALL KNOW INFLATION
HAS REALLY BEEN HI THIS LAST
YEAR IT'S MATTER OF FACT EVEN.
HAD MENTIONED THAT IT'S THE
HIGHEST THAT WE'VE SEEN. IN THE
LAST FORTY YEARS IN CALIFORNIA
AND WHEN AN INFLATION IS HIGH IT
CAN BE VERY HARMFUL TO OUR OLDER
RETIREES BECAUSE OUR BENEFIT
DOES NOT HAVE THE SAME
PURCHASING POWER. AS WHEN THEY
RETIRED. AND- SEVERAL MEASURES
IN PLACE TO HELP PROTECT OUR
OLDER RETIREES FROM THE IMPACT
OF INFLATION THE FIRST. IS A
SIMPLE 2% ANNUAL BENEFIT
ADJUSTMENT. I'M IN THE SECOND AS
OUR SUPPLEMENTAL BENEFIT
MAINTENANCE ACCOUNT OR SBMA.
CASTERS ADMINISTERS THE ESTIMATE
WHICH IS A PROGRAM. DESIGNED TO
PROTECT RETIRED MEMBERS AGAINST
HIGH INFLATION BY HELPING
MAINTAIN A CERTAIN LEVEL OF
PURCHASING POWER PROTECTION. AND
THIS PROGRAM IS FUNDED BY
CONTRIBUTIONS FROM THE STATE AND
HELPS ARE OLDER RETIRED MEMBERS
AND THEIR BENEFICIARIES BY
ENSURING. THEIR PURCHASING POWER
DOES NOT DROP BELOW 85% THE
LEVEL CURRENTLY PROVIDED BY.
REPLACING PROTECTION PROGRAM.
THIS BEEN IF IT IS IMPORTANT FOR
MEMBERS. AN INCIDENT CORTESE
AND- SENT BILL EIGHT SIXTY OF A
BILL THAT PER A JUST SP. O
THOSE WHO BEGAN RECEIVING
BENEFITS PRIOR TO NINETEEN
NINETY NINE AND AS I MENTIONED
EARLIER THERE ARE QUITE A FEW
THAT- IN OUR SYSTEM THAT DO
RECEIVE BENEFITS. AND NEED TO
HAVE THAT PROTECTION THE
TEACHERS RETIREMENT BOARD IS
FORMALLY ADOPTED AT A SUPPORT
POSITION ON THIS BILL LAST WEEK.
I'M THAT THE MEETING SO I'LL GO
AND HANDED OVER TO. OUR CHIEF
INVESTMENT OFFICER CHRIS ELEMENT
TO TALK ABOUT OUR EFFORTS TO
MAINTAIN THE- THE FUNDING LEVELS
AND DISCUSS AND ANSWER SOME OF
THE QUESTIONS OPPOSED BY-
NUMBER. OR PRESS. THIS OF. THE
CHAIR CORTESE AND COOPER AND
MEMBERS OF THE COMMITTEE THANK
YOU FOR THE OPPORTUNITY TO
PRESENT TO YOU TODAY MY NAME'S
CHRIS SALMON ON THE TEETH IN THE
SOFT SERVICE WAS INTRODUCED LET
ME TALK FOR MEN ABOUT
DIVERSIFICATION DIVERSIFICATION
IS THE SINGLE MOST IMPORTANT
PRINCIPLE FOR MITIGATING RISK AS
AN INSTITUTIONAL INVESTOR AND
INDIVIDUAL INVESTORS WERE
DIVERSIFIED ACROSS- ASSETS AND
DIVERSIFIED ACROSS COUNTRY- AND
I WANT TO POINT OUT THAT
DIVERSIFICATION ACTUALLY IS IN
THE STATE CONSTITUTION IS A
EQUIREMENT FOR ALL THE
RETIREMENT SYSTEMS. WITHIN THAT
DIVERSIFICATION COMES UP THAT
CONVERSATION ABOUT DIVEST AND
YOU BROUGHT IT UP SEVERAL TIMES
TODAY- WHAT'S IMPORTANT FOR YOU
TO UNDERSTAND IS THAT CAL STIRS
HAS TO INVESTED- A TOTAL OF SIX
TIMES OVER THE LAST TWENTY TWO
YEARS- I'M KIND OF SAD TO SAY
WERE PROBABLY THE MOST MORE THAN
ANY OTHER PLAN IN THE COUNTRY.
OF ALL THOSE TO VESTMENTS EACH
ONE OF THEM TO DATE HAS LOST
MONEY- TO ANSWER- CINDER
COOPER'S QUESTION WERE AT NINE
POINT FIVE BILLION DOLLARS OF
LOST AN OPPORTUNITY LOST A LOT
OF THAT IS THE COMPOUNDING- AND
AS- MARCY FROST SAID DID A LOT
OF IT IS DUE TO TOBACCO- IF YOU.
ADDED THAT BACK IN OUR PLAN
WOULD BE THREE PERCENTAGE POINTS
HIGHER IN OUR FUNDING PLAN- AND
WE'D BE A LOT QUICKER TO BEING
FULLY FUNDED PUBLIC UP CUT A
COUPLE YEARS OFF OUR PLAN TO BE
FULLY FUNDED- NOW A COUPLE OF
SUGGESTIONS MAY FINALLY TURN
EVEN- BUT IT'S SAD TO SAY- AND I
CAN TELL YOU FROM MY PERSONAL
HISTORY ADMINISTERS FOR THOSE
TWENTY TWO YEARS. NONE OF THEM
HAS ACTUALLY BROUGHT ABOUT ANY
SOCIAL CHANGE THEY'VE ALL BEEN
FOREIGN INVESTMENT DECISION TO
TRY TO MITIGATE RISKS AND SINCE
WE'VE LOST MONEY TODAY THEY
HAVEN'T HELPED US MITIGATE. RISK
BUT WE KEEP AN EYE ON THOSE.
WITH THE DIVEST THOUGH AND I AND
I GUESS I WOULD ADD. IF YOU
THOUGHT OF A SINGLE WORD WHEN
YOU HEAR THE WORD DIVEST MEANT
THINK OF THE WORD AS
DISENGAGEMENT IT CAUSES US TO
TURN OUR BACK TO A PROBLEM OR
IGNORE PROBLEM AND I KNOW THE
LEGISLATURE WANTS TO PUT OUT
STRONG STATEMENTS- BUT I AGREE
WITH THE OTHER STATEMENTS ABOUT
ALLOWING THE BOARD TO MAINTAIN
THEIR FIDUCIARY ARREST. WE ALL
CONSIDER ENVIRONMENTAL SOCIAL
AND GOVERNANCE FACTORS IN OUR
INVESTMENTS ON A REGULAR BASIS-
CASTERS FIRMLY BELIEVES IN
ACTIVE MANAGEMENT AND
ENGAGEMENT- WE SOLD MANY OF OUR
INVESTMENTS- IN RUSSIA AS THIS
HORRIBLE WAR BROKE OUT. TO
MITIGATE OUR RISK- UNDER TWENTY
ONE RISK FACTORS- SO WE WILL
TAKE ACTIONS IN OUR PORTFOLIO-
BECAUSE WE'RE ALL WE BOTH- BIG
FUNDS BELIEVE IN SUSTAINABILITY
. WE HAVE A LONG HISTORY OF
INCORPORATING SUSTAINABILITY OR
ESG IS ACTUALLY IN OUR CORE
INVEST SOME POLICY AND IT'S IN
EVERY SINGLE ASSET CLASS
INVESTMENT POLICY. SO MY STAFF
AND IHAVE TO LOOK AT THAT ON
EVERY SINGLE INVESTMENT WE DO.
AND YOU KNOW THE WORLD'S NOT
BLACK AND WHITE SO EVERYTHING
COMES WITH SHADES OF GREY ABOUT
RISK. AND WHETHER ONE RISK IS
ACCEPTABLE OR WHETHER IT'S NOT
ACCEPTABLE. WE'RE VERY WELL
AWARE OF CENTER GONZALEZ BILL
SB. ELEVEN SEVENTY THREE OUR
BOARD TOOK A POSITION LAST WEEK
TO OPPOSE THAT BILL AND WILL BE
SHARING THAT WITH THE
LEGISLATURE. THE REASON IS WE
ACTUALLY CARE ABOUT CLIMATE
CHANGE THAT IS OUR NUMBER ONE
PRESSING ISSUE IT IS CRITICAL TO
OUR PORTFOLIO IS CRITICAL OF
MANKIND. I DO NOT BEING-
pCASTERS IS ACTUALLY ONE OF THE
LEADING VOICES IN THE NATION AND
THE WORLD AS A PENSION PLAN ON
CLIMATE CHANGE. WE'VE ACTUALLY
MADE DRAMATIC CHANGES IN OUR
ENGAGEMENT. WHICH MADE A CHANGE
IT WORKING WITH THE HEDGE FUND
IN CALIFORNIA TO CHANGE THE
EXXON MOBIL BOARD. WE'VE WORKED
WITH OCCIDENTALIS CALPERS DID TO
MAKE DRAMATIC CHANGES AND THERE
WE ACTUALLY CHANGE THE CEO MANY
YEARS BACK. SO WE WILL STEP UP
AND SHOW OUR STRENGTH IN AND AS
JAMES SAID FROM CALPERS. IF YOU
WANNA GO FAST TOO BY YOURSELF
BUT IF YOU WANT TO GET A LOT
DONE AND YOU WANT TO GO FARTHER
YOU WORK WITH OTHERS. SO JUST
GIVE YOU SOME NUMBERS ON OUR
PAST ENGAGEMENT- WE WORK WITH A
30% COALITION WHICH RESULTED IN
A HUNDRED AND TWENTY SEVEN
COMPANIES. APPOINTING WOMEN TO
THEIR BOARDS WE WORK TO THE
CALIFORNIA INVESTORS GROUP WHICH
INCLUDED THE COUNTIES. AND WE
ACHIEVED FIFTY TWO COMPANIES
THAT ADDED WOMEN OR A DIVERSE
PERSON TO THEIR CORPORATE BOARD.
AND WE'RE NOT DONE. BOTH CALPERS
AND CAL STIRS A BEEN DOING
CORPORATE GOVERNANCE FOR OVER
THIRTY FIVE YEARS IT'S RATHER
AMAZING AND PAST LEGISLATURES
RECOGNIZE THAT. THEY
CONTINUOUSLY APPROPRIATED THESE
CORPORATE GOVERNANCE POSITIONS
AT BOTH FUNDS SO THAT. GOVERNORS
COULDN'T CUT IT OUT AT DIFFERENT
TIMES. AND WE BOTH STAYED
COMMITTED AND WE'RE BOTH AMONGST
THE LEADERS IN THIS ENTIRE
NATION. AND ENGAGING COMPANIES.
CAL STIRS LAST FALL MADE A
COMMITMENT TO BE NET ZERO BY
TWENTY FIFTY OR SOONER. WE JOIN
MANY COMPANIES AND MANY. OTHER
INDIVIDUALS AND OTHER PLANS WITH
THE UNITED NATIONS- TO ACHIEVE
THAT IT'S VERY IMPORTANT TO US
AND IT IS SOMETHING THE BOARD IS
GOING TO ADDRESS ON A REGULAR
BASIS. UPCOMING IN MAY WILL
ANNOUNCE OUR WHAT WE CALL OUR
CARBON FOOTPRINT AND OUR CARBON
INTENSITY. AND WE WILL PLEDGE ON
WHERE WE WANT TO BE OUR GOAL FOR
WHAT WE WANT TO BE AND REDUCING
OUR CARBON FOOTPRINT BY TWENTY
THIRTY. TWENTY THIRTY FIVE
TWENTY FORTY. BUT WE CAN'T DO IT
ALONE. DIVESTITURE OF CARBON
WOULD JUST CHANGE OUR PORTFOLIO
BUT WE NEED MANKIND WE NEED
EVERYBODY. TOGETHER ON THIS TO
CHANGE THEIR BEHAVIOR IN ORDER
TO ROUTE SCREEN OUT PASSES. AND
ONE OF YOUR QUESTIONS WAS YOU
KNOW IS IT IN INDUSTRY IS JUST
ONE INDUSTRY THE PROBLEM. AS
MARCY SAID THE ANSWERS NOW.
GREENHOUSE GASES ARE EVERYWHERE
AND IN EVERYTHING. IT STARTS
WITH ELECTRICITY TRANSPORTATION
WHICH EVERYBODY THINKS OF
BECAUSE AUTOMOBILES IN
CALIFORNIA. BUT IT'S ALSO IN
AGRICULTURE WHICH IS GOING TO BE
A HUGE ISSUE IN OUR STATE. IS IN
MANUFACTURING- IT'S IN REAL
ESTATE AS MARTY MENTIONED SO. WE
NEED TO WORK COMPREHENSIVELY
ACROSS ALL THOSE AREAS NOT JUST
ONE AREA AND NOT VILLAIN EYES
ONE INDUSTRY BECAUSE IT'S GONNA
JUST CREATE A WAR BACK AND
FORTH. WHERE WE GET VERY LITTLE
DONE. OUR OTHER STEWARDSHIP
PRINCIPLES- BECAUSE- CENTER FOR
ASK ABOUT THOSE. WE'RE WORKING
ON CORPORATE MARKET
ACCOUNTABILITY WHICH IS REALLY
ABOUT MARKET AND CORPORATE
DISCLOSURE CORPORATE CEO PAY AND
DISCLOSURE ON THAT. WE ARE
WORKING ON EFFECTIVE CORPORATE
BOARDS PUSHING FOR DIVERSITY ON
THEIR BOARDS- AND TURNOVER ON
BOARDS. WE'RE WORKING ON HUMAN
CAPITAL MANAGEMENT WHICH IS
REALLY A NICE WAY OF SAYING THE
WORK FORCE GETTING BETTER
REPRESENTATION IN THE WORKFORCE
BETTER DIVERSITY OF THE
WORKFORCE OF WORKER RIGHTS. AND
WE ALSO WORK VERY HARD ON THE
LOW CARBON ECONOMY AND TRYING TO
GET COMPANIES TO ESTABLISH THAT
PLAN. AND BEGIN A TRANSITION TO
THAT. LOW CARBON ECONOMY AND
LASTLY IT OUR PHONE WE PREDICT
WE CARE ABOUT FIREARMS SO WE'VE
ACTUALLY BEEN VERY ACTIVE IN
CREATING A SET OF FIRE ON
PRINCIPLES. AND REALLY TRYING TO
PROMULGATE THOSE NOT THE FIREARM
COMPANIES BECAUSE WE INVESTED OF
THOSE SO THEY WON'T TALK TO US
WE CAN'T TALK TO THEM BUT TO
RETAILERS. FINANCE COMPANIES
EVEN SHIPPERS. TO REALLY TRYING
GET SOME BETTER RESPONSIBILITY.
IN THE FIREARM INDUSTRY. TWO
OTHER THINGS I JUST WANT TO
CLOSE ON REAL QUICK YOU'LL HEAR
FROM US THE COLLABORATIVE MODEL
WE NEED TO HEAR THAT JUST THINK
OF WE'RE TRYING TO DO BUSINESS
DIFFERENTLY WE'RE TRYING TO GET
OUT OF SOME OF THE PARTNERSHIPS
AND ACTUALLY OWN OUR ASSET
MANAGERS- I CAN TELL YOU
HONESTLY THAT I THINK WITHIN
FIVE YEARS WILL PROBABLY SAVE
CLOSE TO THREE HUNDRED MILLION
DOLLARS THREE HUNDRED MILLION
DOLLARS A YEAR. IN FEES TO WALL
STREET BY IMPLEMENTING THIS
COLLABORATIVE MODEL. YOU'RE THE
BALDWIN CALPERS RUN A LOT OF
ASSETS IN HOUSE IT SURPRISES
PEOPLE BUT IN SACRAMENTO YOU
HAVE TWO VERY LARGE TRADE
DEFICITS. IN OUR CASE WE RUN
OVER A HUNDRED AND FIFTY
BILLION. IN WEST SACRAMENTO-
WITH OUR STAFFS- VERY VERY
EFFECTIVELY. THE OTHER ONE
THAT'S VERY IMPORTANT TO OUR
BOARD IS DIVERSITY INCLUSION.
AND EQUITY. WE BELIEVE IN
DIVERSITY NOT ONLY OF OUR
INTERNAL TEAM WHICH IS FANTASTIC
BUT ALSO ESPECIALLY OF OUR
EXTERNAL MANAGERS. NO I SAID WE
DO BUSINESS AROUND THE WORLD SO
DIVERSITY CHANGES AROUND THE
WORLD I TRY TO BE A VOICE OF
WHAT DIVERSITY MEANS. FROM THE
CALIFORNIA PERSPECTIVE- BUT ALSO
PUSH THAT ON OUR INVESTMENT
YOUR- I PERSONALLY WORK WITH THE
CFA THAT CHARTERED FINANCIAL
ANALYST INSTITUTE THAT'S OUR
LEADING INDUSTRY ORGANIZATION
FOR INVESTMENTS. TO PUT OUT-
THEIR STANDARD FOR DIVERSITY AND
INCLUSION AND THEIR BEST
PRACTICES ON DIVERSITY
INCLUSION. WE'RE REALLY TRYING
TO CHANGE THE FACE OF THE
INVESTMENT IN STRAIGHT AWAY FROM
PEOPLE LIKE ME AND I GET IT. BUT
TOMORROW DIVERS FACE MORE THIS
REPRESENTATIVE CALIFORNIA BUT IT
TAKES TIME THE SUPPLY OF PEOPLE
COMING UP IN THE BUSINESS SCHOOL
BUT IT'S ALSO THAN FINDING THEM.
SO THEY HAVE OPPORTUNITIES TO
SUCCEED. YOU'RE GONNA SEE A
REPORT FROM US- SHORTLY ON OUR
D. AND I EFFORTS WITHIN CANCERS
AND THEN WITH OUR VESSEL
PORTFOLIO. WE IN CALPERS HAVE
TEAMED UP TOGETHER AND PRODUCED
A CONFERENCE LAST YEAR ON
DIVERSITY IN OUR INDUSTRY. AND
ACTUALLY DONE FIVE OF THOSE IN
THE LAST TEN YEARS SO THE TWO OF
US HAVE BEEN VERY VOCAL. WE WORK
WITH A LOT OF GROUPS- IN THE
LEGISLATURE- IT'S GOOD TO SEE-
CENTER COOPER AGAIN- AND A LOT
OF THE AFFINITY GROUPS- IN OUR
INDUSTRY THAT REALLY PUSHES ON
DIVERSITY- SO FOR OUR BOARD IT
IS CRITICAL RIGHT NOW I'M
MERGING MANAGERS IN OUR
PORTFOLIO WHICH FRANKLY JUST
MEANS SMALL. BUT THAT'S THE WAY
WE HAVE TO MEASURE IT RIGHT NOW
WITH PROP TWO OH NINE- IT
REPRESENTS ABOUT 15% OF OUR
EXTERNAL MANAGERS- WE COULD DO
BETTER AND I GET PRESSURE ALL
THE TIME TO DO MORE BUT I THINK
THAT'S A NICE START. IN AN AREA
FOR US TO CONTINUE TO IMPROVE.
LASTLY WITH ALL THOSE EFFORTS
AND GOALS I WOULD JUST EMPHASIZE
THAT. OUR JOB IS STILL TO MAKE
7% IF WE DON'T ACHIEVE THAT 7%
WE DON'T MAKE THE FULL FUNDING
PLAN WE PUT PRESSURE ON YOU AT
THE STATE LEVEL BUT ESPECIALLY
ON TEACHERS ON THE SCHOOL
DISTRICT SO. WE GOT A LOT OF
WORK AHEAD OF US OUR GOAL ALL
THE TIME IS TO KEEP HITTING THAT
7% NET RETURN AND MAINTAINING
THAT AVERAGE. BECAUSE SANDRA
BACK TO YOU. THANK YOU CHRIS-
AND AS FOR SAID WE CONTINUE TO
BUILD ON THE EFFORTS TO FIND NEW
WAYS TO STRENGTHEN. OUR
OPERATIONS IN ORDER TO ATTRACT-
A HIGHLY QUALIFIED AND- TALENTED
WORKFORCE. WE KNOW THAT
DIVERSITY OF THOUGHT AND
EXPERIENCE AS A TALENT IS WHAT.
WILL MAKE US RESILIENT IN AN
EVER CHANGING. WORK ENVIRONMENT.
WE WELCOME AND EMBRACE DIVERSITY
OF THINKING BACKGROUND AND
EXPERIENCE. TO ENHANCE OUR
CULTURE AND DRIVER BUSINESS
SUCCESSES. VALUING EACH
INDIVIDUAL'S PERSPECTIVE.
EMPOWER STAFF TO PERFORM THEIR
BEST WORK FOR THE DEVELOPMENT OF
OUR MISSION. AND CAL STIRS
DIVERSITY EQUITY ANDINCLUSION
EFFORT IS AN INITIATIVE TO
ATTRACT AND RECRUIT A
DIVERSIFIED WORKFORCE.
REFLECTIVE OF CALIFORNIA'S
GROWING POPULATION WHILE ALSO
REALIZING STAFF NEEDS TO BE
SUPPORTED AND DEVELOPED ONCE
THEY'RE HERE. AND TO MAINTAIN
THE CULTURE OF CULTURES WHILE
ALSO. ADAPTING TO THE PANDEMIC
WE HAVE DESIGNED AND
IMPLEMENTED. CASTERS PATH
FORWARD WHICH IS A FRAMEWORK TO
CREATE. A NEW WORK ENVIRONMENT
IN RESPONSE TO THE GLOBAL PET A
PANDEMIC. AND ELEMENTS OF THE
PLAN OR COMPREHENSIVE BUT THE
OVERALL INTENT. IS REALLY TO
CREATE AN ADAPTABLE AND
RESILIENT- ORGANIZATION THAT
CONTINUES TO THRIVE IN ADVANCE
TO MEET ALL OF OUR OVERALL
BUSINESS OBJECTIVES. AND THEN I
JUST WANTED TO MENTION THAT SOME
OF THE PROJECTS THAT WE'RE
WORKING ON AT CAL STARS WITH A
LOT OF THEM UNDER WAY- CURRENT
YOU CAN. LOOK ACROSS THE RIVER
AND SEE OUR HEADQUARTERS
EXPANSION PROJECT THAT WAS- THAT
IS. YOU KNOW BEING BUILT IN THE-
IN THE FINAL PHASES OF
COMPLETION THROUGH THIS NEXT
YEAR. THAT EXPANSION PROJECT WAS
UNANIMOUSLY APPROVED BY THE
BOARD IN NOVEMBER TWO THOUSAND
EIGHTEEN AND- IT WAS TO ADDRESS
THE ORGANISATION'S GROWTH
EXPECTATIONS OVER THE NEXT TWO
DECADES. AND DUE TO INCREASING
COMPLEXITIES IN OUR INVESTMENT
MARKETS IN THE FINANCIAL
SERVICES SECTOR. AND THE PUBLIC
PLAN ADMINISTRATION. ARE CASTERS
A STAFF HAS GROWN. SINCE MOVING
INTO THE WESTERN CRIMINAL
HEADQUARTERS IN TWO THOUSAND
NINE. AND WE REALLY- WERE OVER
OCCUPIED IN OUR TOWER FACILITY-
AT THE TIME AND WE WERE LOOKING
TO. EXPLORE WHAT OUR EXPANSION-
NEEDS WERE GOING BE FOR THE NEW
BUILDING WILL BE FULL AQUI. BY
STAR STAFF. AND WILL BE A MOST.
AND THE REGION PROVIDING
ENVIRONMENTAL BENEFITS AND
PROMOTING HEALTH AND A COMMUNITY
CONNECTIVITY. AND OVER THE SHORT
TERM THE EXPANSION WILL MAKE UP
MORE THAN TWO HUNDRED THOUSAND
SQUARE FEET OF RENTABLE OFFICE
SPACE AVAILABLE. FOR LEASE IN
OUR CURRENT- TOWER RIVERFRONT
BUILDING. SO AND WE THINK THAT
DESPITE A PANDEMIC DIFFERENT
SHIFTS IN THE- OFFICE SPACE
NEEDS CUSTER'S HEADQUARTERS. IS
REALLY POSITIONED TO BE AN
ATTRACTIVE LEASING SPACE FOR THE
SACRAMENTO DOWNTOWN AREA AND
GENERATE. THIRD PARTY LEASE
REVENUE FOR THE FUND. OUR LONG
TERM PLANS- PROJECT CASTERS
GROWTH TO FULLY OCCUPIED- BOTH
BUILDINGS OVER THE NEXT COUPLE
OF DECADES. AND THEN THE OTHER
PROJECT I WANTED TO MENTION WAS
THE PIGEON SOLUTION PROJECT
WHICH IS A MULTI YEAR PROJECT TO
REPLACE OUR CURRENT PENSION
ADMINISTRATION SYSTEM MINUTES
UNTIL RECENT STORMS. THE PENSION
SOLUTION PROJECT IS ONE OF THE
MOST SIGNIFICANT IT IT PROJECTS
IN CALIFORNIA HISTORY- OR
CASTERS SISTER THAT PENSION
SOLUTION. PROJECT ALIGNS WITH
OUR STRATEGIC PLAN AND DELIVERS
FOR PRIMARY BENEFITS TO THE
ORGANIZATION AS WELL AS OUR
CUSTOMERS AND THOSE ARE
ENHANCING SERVICES TO OUR
MEMBERS AND BENEFICIARIES ARE
STAFF. AND EMPLOYERS INCREASING
OUR ABILITY TO RESPOND TO. OUR
CUSTOMERS AND BUSINESS NEEDS
GAIN LONG TERM OPERATIONAL
EFFICIENCIES AND IMPROVE OUR
INTERNAL CONTROLS SO WE'RE WELL
UNDERWAY AND THAT PROJECT
ALTHOUGH WE'RE- LOOKING AT THE-
THE CHALLENGES WITH THE TIME.
THE ADDITIONAL TIME NEEDED TO
IMPLEMENT THAT SYSTEM. AND THEN
THE OTHER- THE SMALLER BUT ITS
DEFENSE JUST AS IMPORTANT
RELATIVELY OPERATIONAL
IMPROVEMENTS THAT WERE LOOKING
AT- TO TRY TO ACHIEVE AN
EMPLOYER REPORTING TO FINAL
BENEFIT PROJECT AND- THE GOAL IS
TO BETTER- TO BUILD BETTER
PROCESSES SO THAT RETIRED
MEMBERS CAN FEEL CONFIDENT. IN
THE PEACE OF MIND AS THEY MAKE
DECISIONS ON TRANSIT TRANSITION
OUT OF THEIR TEACHING CAREERS IN
RETIREMENT THAT THEIR BENEFITS
WILL NOT ADJUST AND WE SHARE A
COMMON GOAL WITH OUR-
STAKEHOLDER MEMBERS AND EMPLOYER
GROUPS TO FURTHER MINIMIZE THAT
MINIMIZES CHANGES TO THE-
MEMBERS OF BENEFITS AND WITH THE
AIM OF BRINGING A CERTAINTY. AND
CONSISTENCY TERM MEMBERS AND- SO
WE LOOK FORWARD TO CONTINUING TO
WORK TOGETHER WITH THE
STAKEHOLDER GROUPS AND
ASSEMBLYMEMBER COOPER
SPONSORING- AB SIXTEEN SIXTY
SEVEN WHICH IS TO HELP ADDRESS.
SOME OF THE STABILIZATION
EFFORTS- AND THEN SOME OF THE
OTHER AREAS THAT I JUST WANTED
TO MENTION OUR OUR RETIREMENT
READINESS- SUCCESS THAT WE'VE
HAD IN THE VIRTUAL ENVIRONMENT
IT DOESN'T REALLY. HAVE THE- THE
BENEFIT OF EXPANDING OUR
OUTREACH OR STAKEHOLDER MEMBERS
WITH- BRINGING SESSIONS AND-
TRAINING SESSIONS GROUP SESSIONS
AND INDIVIDUAL COUNSELING
SESSIONS. I'M INTO A VIRTUAL
ENVIRONMENT WHICH BRINGS OUR
REACH. YOU KNOW BRINGS THE
CAPACITY TO REACH TO A GREATER.
POPULATION SO WE'RE KIND OF
GOING TO CONTINUE TO. EXECUTE
STRATEGIES THAT BUILD UPON THAT
WHILE ALSO OPENING- AND KEEPING
OUR MEMBER SERVICE CENTERS OPEN
AS WE TRANSITION INTO MORE OF A
PHYSICAL- AND PERSON
ENVIRONMENT. THAT IS SOMETHING
THAT WE STILL KNOW WAS MISSING-
OR THE OUR MEMBERS MRS COMING IN
AND BEING ABLE TO- INTERACT
INDIVIDUALLY WITH OUR- WITH OUR
COUNSELORS AND- WHILE OUR
OFFICES ARE OPEN WE STILL
HAVEN'T SEEN. THE RESURGENT OF
OUR MEMBERS I'M COMING IN AT THE
RATE THAT THEY WANT TO DO IT SO
THAT MAKES US BELIEVE THAT THEY
ARE- AND CAPTAIN TO THE VIRTUAL
ENVIRONMENT. TO GREATER DEGREE
THAN WHAT WE HAD EXPECTED A
PREVIOUSLY. AND JUST IN
CONCLUSION I WANTED TO SAY THAT
YOU KNOW WE HAVE BEEN SERVING
CALIFORNIA EDUCATORS FOR MORE
pMISSION OF SECURING THE
FINANCIAL FUTURE- ENTRUST
RECOVERY EDUCATORS OUR PRIORITY.
IS FOR EVERY MEMBERS QUALITY OF
LIFE. AFTER RETIREMENT TO BE
EXACTLY. WHAT THEY EXPECTED IT
TO BE A BETTER. AND WE WILL
CONTINUE OUR FOR ON X. THE
COUNCIL FUNDING. AND MONITORING
ADJUSTING TO THE A DIFFERENT
FUTURE RISKS THAT ARE GOING TO
BE CHALLENGING US OVER THE NEXT.
YOU KNOW FEW DECADES REMAIN
COMMITTED TO INVESTING
RESPONSIBLY OVER THE LONG TERM-
CONTINUING TO ADD VALUE TO OUR
PORTFOLIO. ALL FOR THE BENEFIT
OF OUR CALIFORNIA EDUCATORS AND
THEIR FAMILIES. AND WITH THAT A
HUNDRED BACK OVER TO YOU A
SENATOR PURCHASING. THANK YOU
VERY MUCH. THIS BOOK KNOCK AND-
YOU KNOW AND ALSO MISTER ALEMAN
PRESHEAF VERY MUCH- YOUR
PRESENTATION. IN RESPONDING TO-
SOME OF THE EARLY QUESTIONS A-
THERE WERE THERE WERE ASKED HOME
IN I THINK- ANTICIPATING THE FEW
QUESTIONS THAT MIGHT BE- SO GOOD
JOB WITH THAT- I KNOW WE HAVE A
RIGHT TO REQUEST BE RECOGNIZED
BY SOME MEMBER COOLLY SERMON
ATTORNEY HIM. THANK YOU VERY
MUCH MISTER CHAIR- YEAH THIS
QUESTION RELATES TO THE GENERAL
TOPIC OF DISINVESTMENT WHICH-
SPOKE TO MISTRIAL MONDAY- I
ACTUALLY AM VERY FAMILIAR WITH
PROP TWENTY ONE THAT WAS A C.
SIXTEEN WHICH IS A STAFF MEMBER
IN EIGHTY THREE ACTUALLY WORKED
ON- MY BOSS WAS THE AUTHOR- YOU
KNOW I THINK WHEN YOU LOOK AT
THIS INVESTMENT I THINK WE IN
THE LEGISLATURE HAVE OUR ROLE TO
PLAY. WHICH IS FRANKLY THE
UNDERSTAND THE CONSEQUENCE OF
THESE IDEAS IT SORT OF BRINGS TO
MIND THE EXPRESSION FOOL ME ONCE
SHAME ON YOU FOOL ME TWICE SHAME
ON ME. YOU KNOW I ACTUALLY FOUND
IT INTERESTING MISTRIAL MENU
REMARKED THAT NINE TIMES. YOU
HAVE UNDERTAKEN. DIVESTMENT
TYPES OF DECISIONS- ANY REMARKED
ON THE COLLECTIVE LOSSES THAT
THAT IMPOSED ON THE SYSTEM. AND
SO I GUESS THE QUESTION WOULD BE
HAVE THEY EVER BEEN. NEUTRAL
HAVE THEY ALWAYS FLED THE FUND
IN SOME RESPECTS BACKWARDS.
BECAUSE THEN IF WE KNOW THAT IS
INVARIABLY TRUE YOU CAN'T
ACTUALLY UNRING THAT BELL AND
THAT BECOMES A PART OF WHAT
EXACTLY DOES THE INVESTMENT
REQUIREMENT ADDED TO THE
CONSTITUTION BY PROPOSITION
TWENTY ONE. HOW DOES IT RELATE
THESE ISSUES NOT EVERY YOU WOULD
NO LONGER DEAL WITH
DISINVESTMENT CENTER CASE OF
FIRST IMPRESSION AS A LAWYER YOU
MIGHT REFER TO IT AS- WE'VE
WE'VE SEEN A SERIES OF THEM THEY
HAVE A CERTAIN. TYPE OF
CONSEQUENCE AND I THINK WE NEED
TO TAKE NOTE OF THAT SO- HAS
THERE EVER BEEN A DISTANT A
DISINVESTMENT TYPE OF PROGRAM
THAT HAS RESULTED IN. A SENSE OF
GAIN TO THE SYSTEM. THANK YOUR
PRESENT A PROOF CENTER CALLING
FOR THAT QUESTION- AND I WANT TO
CORRECT I IF I MISSPOKE- WE
DIVEST AND WE'VE DIVESTITURE
GAINS IN THE LAST TWENTY TWO
YEARS- YOU WOULD THINK THAT SOME
OF THOSE MIGHT BE A BREAK EVEN
WITH THE BEST OF COAL. BOTH US
AND NON US- WE THOUGHT THAT WAS
A VERY SOLID DECISION- BUT
UNFORTUNATELY- THE PASS TO
ADMINISTRATION IN WASHINGTON
CAME ALONG AND- COLE JUMPED. IN
USE- AND IT IT IS PROBABLY THE
CLOSEST ONE OF THE- SIX THEY
WOULD GO TO- BREAK EVEN- THE
OTHER THAT WE THOUGHT MADE SENSE
WAS- WE DIVEST OF FIREARMS-
COMPANIES THAT SELL PARTS. THAT
ARE ILLEGAL IN THE STATE OF
CALIFORNIA IT WAS ONLY TWO
STOCKS- BUT THERE AGAIN-
UNFORTUNATELY BEEN SALES WENT
THROUGH THE ROUGH- IN DURING THE
PANDEMIC. AND THEN LASTLY
ANOTHER ONE I WOULD SAY THAT WAS
PROBABLY OUR LAST INVESTMENT IF
I RECALL CORRECTLY- WE
DIVESTITURE OF TWO PRIVATE
PRISON COMPANIES- AND- WHILE
THERE WAS A BIG PUSH TO STOP
DOING BUSINESS- PEOPLE HAVEN'T-
AND THOSE STOCKS- UNFORTUNATELY
YOU KNOW LAST YEAR THE MARKETS
ARE SO STRONG- A RISING TIDE
RAISES ALL BOATS EVEN ONES THAT
MIGHT BE WEAK LIKE THOSE STOCKS
AND THEY WENT UP IN VALUE. SO
THERE ARE LEAST OF THOSE THREE
OF THE SIX I WOULD SAY OUR BREAK
EVEN THE CHALLENGE I GUESS I
WOULD RACE TO YOU IS THAT I
THINK WE WHEN YOU WANT US TO
TAKE ACTION. AND DIVEST MANY OF
THOSE DO NOT HAVE A SUNSET
CLAUSE AND SO ON PARTICULARLY ON
IRAN AND SUDAN SUDAN DID START
TO GET BETTER AND AT LEAST
SEPARATED. BUT WE WOULD NOT HAVE
INVESTED BACK IN COMPANIES THAT
WERE DOING BUSINESS WITH SOUTH
SUDAN BECAUSE THE LOG SYSTEM SO.
IT'S A TOUGH INSTRUMENT IT'S A
HARD DEBATE I DID IT AND THEN-
AND THANK YOU FOR YOUR WORK ON
PROP TWENTY ONE IT'S BEEN MY
ENTIRE CAREER- WORKING. IN
CALIFORNIA. PENSIONS- IT'S A
DISCUSS ABOUT HOW TO BRING ABOUT
THE RATE CHANGE AND I JUST
WANTED HER TO DIVEST MAN IS AN
INVESTMENT DECISION- IT HAS NOT
AFFECTED SOCIAL CHANGE. YES
PLEASE JUST BY WAY I MAY THANK
YOU VERY MUCH AND I DEFINITELY
WANT TO SAY. I ASKED THE
QUESTION TO INFORM HOW WE IN THE
LEGISLATURE DELIBERATE UPON
THESE MATTERS. ALL WE DO SET THE
POLICY WE GIVE DIRECTION. YOU
KNOW I THINK WHAT THE PUBLIC
WANTS US TO DO IS TO THINK
DEEPLY ABOUT THE RAMIFICATIONS
OF THINGS. SO I THINK. ARE VERY
STRINGENT SYSTEMS OPERATE A PROP
TWENTY ONE VIOLENT YOU DO THE
BEST YOU CAN- I WAS I APPRECIATE
YOUR COMMENTS THEY JUST SORT OF
IN LARGE MY FRAMEWORK ON THESE
MATTERS. AND THAT OF MY
COLLEAGUES WHO I THINK YOU VERY
MUCH VERY APPRECIATIVE OF YOUR
WORK AND YOUR PARTICIPATION
TODAY THANK YOU MISTER CHAIR.
THANK YOU SO EVER END IN BEFORE
WE GO ON- JUST ANOTHER
ANNOUNCEMENT THIS WOULD BE A
GOOD TIME FOR MEMBERS OF THE
PUBLIC WHO WANT TO PARTICIPATE
IN PUBLIC COMMENT- KEY TO DIAL
IN THE TOLL FREE NUMBER IS EIGHT
FOUR FOUR. TWO NINE ONE.
585-844-2914 ONE EIGHT FIVE THE
ACCESS CODE IS FOUR SIX. SIX
THREE NINE SIX EIGHT. IF YOU
DIAL IN NOW- YOU'LL BE- TO BE
QUEUED UP FOR PUBLIC COMMENT
WHICH WILL BE OCCURRING AS SOON
AS WE'RE DONE WITH QUESTION
ANSWER ON THIS PANEL. SO THANK
YOU IN BACK TO QUESTIONS AND
ANSWERS UNTIL COOPER. THANK YOU
MR CHAIR- I DON'T THINK MR
ALLMAN FIRST CANNED OR TENDER-
YOU KNOW CAL STIRS NINE POINT
EIGHT BILLION IN LOSSES- THE CAL
STARS AS DIVERSE AS SIX TIMES IT
DOESN'T CREATE SOCIAL CHANGE IN
IN FOR FOLKS TO THINK ABOUT THAT
I DROPPERS FOR YEARS NOW. AND I
CURRENTLY CHAIR PERSON THE
ASSEMBLY- CALIFORNIA RESPONSIBLE
FOR ONE PERSON THE GREENHOUSE
GAS EMISSIONS- I HAD THE MOST
RETIREES IN THE SECRETARY MY
DISTRICT IN THE MOST ACTIVE.
PERSON PLEASE IT'S ABOUT
RETIREMENT GETTING THERE ON THE
GROUND THE CAPITOL EMPLOYEES
THAT WORKERS ARE EMPLOYEES THIS
IS THE MAKE SURE WE SECURE THEIR
FUTURE THAT THEY WERE PROMISED
FOR RETIREES. TO SECURE THE
FUTURE PROMISED EVERY YEAR
THERE'S FOUR FIVE BILLS ON THE
VESTMENT THAT COME BEFORE
COMMITTEE IT'S RUSSIA IS CHINA'S
BELARUS ISRAEL TURKEY. DIVEST
FROM FIREARMS TOBACCO COAL
PRIVATE PRISONS- IT'S TOUGH YOU
KNOW PEOPLE STILL USE GAS THAT'S
THE BIG FOSSIL FUEL ISSUE IN YOU
REALLY DIG INTO THINGS AND DELVE
DEEP INTO IT- CLIMATE CHANGE IS
REAL I BELIEVE IN IT. IT TAKES
TIME- THE MANAGER KARA
CALIFORNIA'S FOURTEEN YEARS OLD
LAWFUL TO OUR CAR PAYMENT THEY
CAN AFFORD EVEY THEY CAN AFFORD
THE INSURANCE HOW DO WE DO WITH
THOSE FOLKS THINK ABOUT THAT SO.
LIKE I SAID I'M I'M PASSIONATE
ABOUT IT BUT ALSO TO BE
REALISTIC WE IMPOSE SO MUCH ON
CALIFORNIANS IT IS EXPENSIVE TO
LIVE HERE BECAUSE THE THINGS THE
LAW SWEEP THE THINGS WE DO THE
LAWS WE PASS AND THAT'S THAT'S
THE TOUGH PART ABOUT IT SO. THIS
HEARING IS BEEN GOOD IT'S BEEN
REFRESHING TO HEAR SOME SOME
CANDOR- FROM THE FOLKS IN THE
RETIREMENT SYSTEMS. AND THAT'S
WHERE IT COMES DOWN TO WE HAVE
AN OBLIGATION THOSE FOLKS ARE
RETIRED ALREADY IN THOSE FUTURE
EMPLOYEES ARE EMPLOYEES IN THE
BUILDING WHICH NUMBER A GREAT
DEAL AND THE OTHER STATE
EMPLOYEES TO MAKE SURE- THEY GET
WITH THEIR PROMISE SO. THAT BE
VERY JUDICIOUS IN HOW WE APPLY
THIS AND RIGHT NOW IT'S THAT THE
VESTMENT MILK. GUNS ARE STILL
AROUND PEOPLE LIKE FIREARMS.
DEMOCRATS INTO. ENDED UP. SO
WE'VE A VERY. AND WE PERCEIVE ON
THIS THANK YOU MR. THANK YOU MR
ISSUE YOUR COMMENTS- LET ME IT
IS THERE ANYONE ELSE WHO WOULD
LIKE TO QUESTION COMING FROM FOR
LET ME JUST SAY IN IN I DON'T
THINK THIS IS NECESSARILY- AN
ALTERNATIVE POINT OF VIEW BUT I
THINK WHAT. IS GOING ON WILL
CONTINUE GOING THE LEGISLATURE
IS- THERE'S A COST IS THE COST
BENEFIT ANALYSIS BUT IT'S NOT
NECESSARILY WHETHER OR NOT- IN
THE CASE OF CLIMATE FOR EXAMPLE
LET ME JUST SAY. I HAVEN'T TAKEN
A POSITION ON CURRENT
LEGISLATION ON THE INVESTMENT
AROUND CLIMATE BUT- WHEN ON THE
DAY THAT I WAS SWORN INTO OFFICE
ALONG WITH- MY VICE CHAIR OF
THIS COMMITTEE DECEMBER SEVENTH
TWENTY TWENTY- IT WAS ANNOUNCED
THAT DAY THAT CALIFORNIA.
ECONOMIC DAMAGE TO TWO.
WILDFIRES IN TWENTY EIGHTEEN WAS
A HUNDRED AND FORTY EIGHT POINT
FIVE BILLION- IN- JUST. A
RECENTLY. NATIONAL ESTIMATES ON
FIRE DAMAGE FOR TWENTY TWENTY
ONE OR SEVENTY BILLION. MORE
THAN HALF OF WHICH ABOUT FORTY
FIVE BILLION WAS IN CALIFORNIA
AND SO I THINK WHAT WHAT HAPPENS
IS PEOPLE AREN'T NECESSARILY
LOOKING AT WHETHER OR NOT- THE
DIVESTMENT HAS EFFECTUATED
CHANGE WITHIN. WITHIN THE
RETIREMENT SYSTEM ITSELF- OR
WHETHER THAT HAS. LED TO- GLOBAL
CHANGE BUT I THINK WHAT HAPPENS
IS WE HAVE NOT ONLY
CONSTITUENCIES BUT A SENSE OF
VALUES TAT SAYS WE NEED TO DO
SOMETHING ABOUT CLIMATE WE NEED
TO DO WHAT WE CAN ABOUT CLIMATE.
IT'S EXISTENTIAL AND THE COST TO
THE STATE OF DOING. NOTHING
WOULD BE IN THIS CASE. IN IN THE
WORST YEAR WE HAD A HUNDRED
ALMOST A HUNDRED FIFTY BILLION
DOLLARS SO I GUESS THE QUESTION
THAT'S ATTACHED TO THAT FOR ME.
IT IS IT SEEMS IT SEEMS IT SEEMS
THERE'S TWO WAYS FOR THE PENSION
FUNDS TO HANDLE THESE QUESTIONS-
HE ONE IS. TO SAY WE'RE JUST YOU
KNOW WE'RE GOING TO OPPOSE.
DIVESTMENT BILLS ARE GONNA TRY
TO TALK PEOPLE DOWN FROM FROM
THE CLIFF SO TO SPEAK ANOTHER
WAY IS TO SIT IN A MAYBE AND
MAYBE THIS IS BOTH HAND IS TO
SAY. WE ANTICIPATE EITHER BY
LEGISLATIVE MANDATE OR BY
ATTRITION- THAT THE FOSSIL FUEL
INDUSTRY IS GOING TO DECLINE OR
THAT OUR ABILITY TO INVEST IN
HOUSTON GOING TO DECLINE AND
WHAT IS THAT CRITICAL PATH LOOK
LIKE I DON'T THINK I'VE YET
HEARD TODAY ANYONE COME FORWARD
AND SAY- WE'RE NOT PARTICULARLY
KEEN ON DIVESTMENT. IMMEDIATE
DIVESTMENT WE DON'T THINK IT'S
PRACTICAL WE DON'T THINK IT'S
EFFECTIVE BUT WE UNDERSTAND THAT
WE'RE GOING TO NEED TO GET OUT
OF THIS BUSINESS AND HERE'S
HERE'S HERE'S- HOW WE CAN DO
THAT. HERE'S A CRITICAL PATH
IT'S TEN YEARS OF DECLINE
INVESTMENT IN THIS SPACE OR IT'S
TWENTY YEARS- I'M NOT HEARING
THAT AND I JUST WANTED TO ASK.
EITHER OF OUR CURRENT PRESENTERS
WHETHER OR NOT THAT KIND OF WORK
IS ACTUALLY BEING DONE INDIA
HAVE. CONTINGENCY PLANS FOR
MOVING OUT OF. INVESTMENTS THAT
ARE BECOMING INCREASINGLY COSTLY
FOR SOCIETY. HE RESPECTABLE WHAT
THE LEGISLATURE DOES. I'LL JUMP
IN AND TURN IT OVER TO CALPERS
AFTER THAT THAT'S RIGHT. THANK.
I'LL GO AHEAD MY NAME IS CHRIS
HIM AGAIN- ABSOLUTELY SIR WE'RE
VERY ACTIVE BOTH WE AND HERS ARE
ACTIVE IN TRYING TO GET OUR
PORTFOLIOS TO NET ZERO WHAT THAT
MEANS IS NOT JUST GETTING FOSSIL
FUEL COMPANIES TO STOP DRILLING
FOR OIL BUT TO GET THEM TO
CHANGE THIS IS NOT GOING TO BE
AN EASY TRANSITION I AGREE WITH
SENATOR COOPER'S COMMENTS ABOUT
THE PRICE OF AUTOMOBILES BUT AS
I SAID IT'S EVERYWHERE SO WE
WANT TO REDUCE THE CARBON
INTENSITY OF OUR TWO PORTFOLIOS
STEADILY OVER TIME BUT A BIG
PART OF THAT IS TO GET FORD AND
GM TO MAKE MORE EASY. IS TO GET
ALL THE ELECTRICITY
MANUFACTURERS ARE PROBABLY THE
ELECTRICITY GENERATORS AND
UTILITIES IN THE COUNTRY TO
SHIFT AWAY FROM COAL AND FROM
OIL AND GAS- AND GO TO HYDROGEN
AND OTHER RENEWABLE SOURCES BUT
THAT CAN'T HAPPEN OVERNIGHT
BECAUSE IT'S JUST TOO EXPENSIVE
IT'S GOT TO BE A STEADY
TRANSITION- AND WE FRANKLY I'VE
GOT TO GET THE OIL AND GAS
INDUSTRY AND THE MIDDLE OF THE
COUNTRY OF TEXAS TO BE WILLING
TO SHIFT AWAY FROM WHAT'S BEEN
THEIR BREAD AND BUTTER OVER TO
OTHER AREAS AND IT'S HARD TO
TURN A BIG SHIP LIKE EXXON MOBIL
BUT WE DID IT BY CHANGING THE
TOP. AND GETTING THEM TO START
TALKING ABOUT NET ZERO IN TWENTY
FIFTY THEY'RE NOT MAKING PLANS
FAST ENOUGH GRANTED BUT THEY ARE
MAKING A CHANGE LOOK AT WHAT
SHELL CHEVRON IS DOING IN TRYING
TO BUY INTO A GREEN DIESEL SO
PEOPLE REALIZE AND THESE
COMPANIES REALIZE IF THEY WANT
TO SURVIVE IN THE FUTURE THEY'VE
GOT TO CHANGE IF THEY DON'T
CHANGE YES HER SISTERS WILL BE
COMPELLED TO HAVE TO SELL THOSE
STOCKS IF WE WANT TO REDUCE OUR
CARBON FOOTPRINT. BUT THAT'S
GOING TO ENTAIL A RISK. IF THE
REST OF THE HAS SHIFTED. AND WE
ALL THE PEOPLE IN THE STATE ARE
LIVING CLOSER TO NET ZERO. THEY
WERE TAKING WHO DRESSED AND
WE'RE PREDICTING THE FUTURE. AND
THAT INVOLVES A CHALLENGE. SO
THAT'S PROBABLY TWENTY THIRTY
AND TWENTY THIRTY FIVE NOT TODAY
BUT YOU HAVE TO START ON THAT
TRIP TODAY IF YOU WANT TO GET TO
ZERO BY TWENTY FIFTY OR EARLIER.
IT'S GOT TO BEGIN TODAY. YEAH I
DON'T THINK THERE'S ANY
DISAGREEMENT ABOUT THAT- AND I
THINK THERE'S A LOT OF PEOPLE
WHO FEEL THAT IF YOU DON'T GET
TO KNOW ZERO. AND DON'T MEAN YOU
WE- BUT THAT TIME FRAME. YOU'RE
PROBABLY NOT GOING TO HAVE TO
WORRY ABOUT THE PENSION FUND
BECAUSE IT'S AN ISSUE OF. OF
HUMANITY SURVIVING BUT BE THAT
AS IT MAY ALL I WAS ASKING FOR
IS WHERE'S YOUR- THIRTY YEAR
PLAN YOUR TWENTY YEAR PLAN WERE.
THERE'S BILLS LEGISLATION
THERE'S EXECUTIVE ORDERS TO WRAP
UP THE EV'S. TO TOLD EMANATE-
THE SALE OF GAS POWERED VEHICLES
HERE LAST YEAR THERE WAS A BILL
THAT ACTUALLY GOT SIGNED INTO
LAW THE ELIMINATING- GASPAR
GARDEN TOOLS WITH YOU AGREE WITH
THAT OR NOT I'M NOT EVEN ASKING
A QUESTION. OR THE AGREE WITH
WHETHER OR NOT CALIFORNIA ITSELF
CAN. CAN MAKE A DIFFERENCE BY
DOING THOSE THINGS- WHAT IS YOUR
PLAN DO YOU HAVE DO YOU HAVE- AN
ACTUAL RAMP DOWN PLAN IT SOUNDS
LIKE WHAT YOU'RE SAYING IS. YOU
KNOW THE FOLKS THAT WE'RE
INVESTING IN ARE MOVING QUICKLY
ENOUGH- SOMEBODY NEEDS TO GET
HIM TO DO THAT IT SEEMS TO ME
THAT'S- THAT'S PART OF THE
LEGISLATIVE FUNCTION THAT'S OUR
JOB IF THAT'S WHAT WE WANT TO DO
IS TO TRY TO GET PEOPLE TO- TO
MOVE IN A DIFFERENT DIRECTION-
BUT I DON'T. I'M A I'M I'M
CONCERNED THAT THERE'S NOT A
PERIL OF PLAN THAT I'M HEARING-
YOU KNOW IN THE PENSION FUNDS
IN. A IT SOUNDS LIKE YOU'RE
YOU'RE THINKING THROUGH IT
YOU'RE DOING THE WORK BUT IF
THERE IS SUCH A PLAN AGAIN I
THINK I'D BE A GREAT THING TO
DISTRIBUTE- YOU KNOW TO ALL OF
US SO WE CAN. WE CAN SEE IT MAY
TEMPER. OR A CAR BECAUSE PEOPLE
TO ADJUST- THE KIND OF
LEGISLATION TO BRING IN FOREIGN
INVESTMENT AND TO TRY TO TIE IT
TO THE KIND OF TIME LINE SO
YOU'RE ACTUALLY. MORE
COMFORTABLE WITH- THEM AT THE
SCHOOL YOU LEANING IN THAT YOU
WANT TO COMMENT AGAIN. I DO
AGREE WITH YOU I THINK THEY CAN
DO MORE BUT LIKE THIS HE SAID IF
THE WORLD HAS A SHIFT AWAY. AND
A GOOD EXAMPLE THE BIGGEST
INDUSTRY IN CALIFORNIA'S
AGRICULTURE. SO CARD SAYS YOU
CANNOT USE THIS TRY ACTOR IN
CALIFORNIA. BUT YOU CAN USE IT
IN ELSE IN THE WORLD- THE- KIND.
THAT THAT IS NONSENSE. BECAUSE
THAT JUST DRIVES UP PRICES IN
CALIFORNIA SO. I THINK IT'S BEEN-FORCED DOWN BY THE LEGISLATURE
THE PUBLIC. ON THE CLIMATE
CHANGE THINGS I THINK- PERSON
STARS IN THE REST EIGHTY FIVE
RETIREMENT SYSTEMS. CAN DO TO
FIGURE OUT HERE OUR GOALS. HOW
TO GET THERE AND I THINK THEY
CAN DO THAT MAYBE THEY'VE SHOWN
THAT TIME AND TIME AGAIN INSTEAD
OF YOU HAVE IT FORCED DOWN THEIR
THROAT WITH THAT AND A BAG WITH
IT WITH THE CHERRY IT'S I'D LOVE
TO HEAR THEIR IDEAS. HOW WE GET
THERE I AGREE WITH YOU ON THAT
AND THERE'S GONNA BE SOME MIDDLE
GROUND ON THIS SO GREAT
COMMENTS. THANK YOU SURE COOPER
IN- I THINK IT'S BEEN A GOOD
DISCUSSIONS AND INFORMATIVE- I
WILL SAY BEYOND MY EXPECTATIONS
TODAY WE KNEW WE HAD TO. A
STATUTORY REQUIREMENT OF HEARING
TODAY BUT I THINK- A LOT OF
GOOD- POLICY ISSUES HAVE ALSO
SURFACED- FOR THE PRESIDIO
WITHIN OUR RESPECTIVE
COMMITTEES- I'M GONNA MAKE- SOME
ABBREVIATED CLOSING REMARKS- BUT
I WANT TO GIVE. YOUR COOPER
CHANCE TO DO SO FIRST AND THEN
WE'LL SWITCH RIGHT OVER TO.
PUBLIC COMMENT SO WE CAN- SWING
THROUGH THE ROOM. I STILL THINK
THE PANELISTS BEING WITH TODAY
TO PROVIDE INSIGHT THE WORK THAT
YOU DO TO MINISTER THE
RETIREMENT THE COMPLEXITY
MINISTRATION AND WHAT IT TAKES
TO ENSURE FINANCIAL SECURITY IN
RETIREMENT. RETIREES WHO RELY ON
YOUR EXPERIENCE AND EXPERTISE TO
ENSURE THAT THEIR PENSION
PROMISES MAINTAIN THANK YOU.
THANK YOU VERY MUCH- AND LET ME
FORMALLY ON BEHALF OF ALL OF US
THINK THE LAST- PANELISTS ON US
AGAIN CEMEX WE GIVE AND TAKE
THERE WE APPRECIATE YOUR
PRESENTATION IS GREATLY
APPRECIATE HIS SIDING- SOME OF
THE CURRENT LEGISLATION THAT'S
AROUND THAT MAY- MITIGATE IMPACT
ON ON FOLKS IN TERMS OF
INFLATION AND- AND SOME OTHER
ISSUES SO- WE THANK EVERYONE
TODAY FOR PARTICIPATING WE
UNDERSTAND. THE CRITICAL
IMPORTANCE OF THIS WORK- IN THE
INTEGRITY OF THE PROMISE WE MADE
TO PEOPLE. WHO DEDICATE THEIR
LIVES TO SERVING THE PEOPLE OF
CALIFORNIA WHICH IS REALLY
ULTIMATELY THE BENEFICIARIES OF
ALL THE GOOD WORK THAT YOU'RE
DOING- WITHIN THE PENSION FUNDS
AND IN OUR INTENTIONS TO BUT TO
TRY TO HELP AND BE SUPPORTIVE.
HOWEVER WE CAN AS A LEGISLATURE-
I WANT TO- MOVED DOWN TO TWO
PUBLIC COMMENT- IN THAT WILL.
ESSENTIALLY BE HOW WE CLOSE SO I
WILL ADJOURN AFTER THE PUBLIC
COMMENT BUT- I WILL THINK OF ALL
THOSE SPEAKERS- ONCE THEY'RE
DONE AND- BEFORE WE GO TO THE
MODERATOR- WE- NOW WILL GO TO
THE GALLERY- I'M TOLD AND I CAN
KIND OF SEE FROM HERE THAT WE
HAVE- FOLKS HAVE BEEN WAITING TO
SPEAK FROM THE GALLERY- WE'RE
GOING TO LIMIT PUBLIC SPEAKING.
I DON'T KNOW HOW MANY FOLKS ARE
ARE ON- THE TELECOM IT'S WINE- I
WAS ANTICIPATING ALLOWING ABOUT
TEN MINUTES TOTAL THERE SO WE'RE
GONNA JUST ASK EVERYONE TO LIMIT
THEIR COMMENTS TO ONE MINUTE-
PLEASE TRY TO ABIDE BY THAT IF
YOU CAN'T THANK YOU AND- PLEASE
IDENTIFY YOURSELF AND PERCY.
GOOD MR CHAIR AND CHAIR COOPER
AND COMMITTEE MEMBERS MY NAME IS
SANDY EMERSON AND I'M A CLIMATE
ACTIVIST FROM BERKELEY. THE
SUDDEN LOSS OF VALUE OF
INVESTMENTS IN RUSSIA SHOWS HOW
QUICKLY ASSETS CAN BECOME
STRANDED THE CRISIS IN UKRAINE
HAS BROUGHT GLOBAL SANCTIONS
AGAINST VLADIMIR PUTIN AND HIS
ON JUST WAR AS USUAL THE MOST
SEVERE IMPACTS WILL BE FELT BY
PEOPLE WHO WANT NO PART OF THIS
WAR. BUT THE FACT THAT RUSSIA
DEPEND SO HEAVILY ON SALES OF
ITS FOSSIL FUELS HAS THROWN ITS
ECONOMY INTO CHAOS. THE ECONOMIC
FALLOUT OF THE WAR HEIGHTENS THE
URGENCY OF WINDING DOWN
INVESTMENTS IN FOSSIL FUELS IN
AN ORDERLY FASHION BEFORE
THERE'S A CRISIS. PENSION FUND
SHOULD NOT BE THE HOLDERS OF
LAST RESORT FOR TOXIC FOSSIL
FUEL INVESTMENTS. AS THE
GOVERNOR SAID LAST NIGHT WE MUST
END OUR DEPENDENCE ON PETRO
STATES INCLUDING THE PLANET
SIZED SPHERE OF INFLUENCE OF THE
OIL MAJORS WHO SEEK TO
PERPETUATE THEIR DESTRUCTIVE
BUSINESS AS LONG AS POSSIBLE.
SHAREHOLDER ENGAGEMENT IS NOT
AFFECTED THE GASOLINE INDUSTRY
THAT SEEKS TO GROW ENDLESSLY AND
RELENTLESSLY AND IS AS DEADLY AS
ANY DICTATOR. ASKING FOSSIL FUEL
COMPANIES TO START PRODUCING
FOSSIL FUELS IS NOT GOING TO GET
US TO WHERE WE NEED TO BE. BOTH
CALPERS AND CAL STIRS HAVE
PLEDGED TO ACHIEVE NET ZERO BY
TWENTY FIFTY IN ORDER TO LIMIT
GLOBAL TEMPERATURE RISE TO ONE
POINT FIVE DEGREES CELSIUS
MEETING THAT CARBON BUDGETMEANS
THAT 90% OF COAL AND 60% OF BOTH
OIL AND GAS HAS TO STAY IN THE
GROUND. YOU CAN'T SELL IT IN OUR
PENSION FUNDS SHOULDN'T GET
STUCK OWNING IT I'M GONNA HAVE
TO ASK YOU TO WRAP UP PLEASE.
WITH THE UKRAINE CRISIS JUST
LIKE THAT THE INVESTMENT
LANDSCAPE CHANGED. LIKE AN
INCREASING NUMBER OF LARGE ASSET
OWNERS CALPERS AND CAL STIRS CAN
TAKE THIS OPPORTUNITY TO DIVEST
FROM FOSSIL FUELS IN AN ORDERLY
FASHION. AND ACCELERATE THE
TRANSITION TO A CLEAN ENERGY
ECONOMY. THANK YOU FOR BEING
HERE NEXT SPEAKER PLEASE. THANK
YOU MR CHAIR AND COMMITTEE
MEMBERS AND CULTURE COOPER MY
NAME IS GLEN SHIEL BEN I AM A
CALPERS MEMBER. I'M ALSO AN
ASSOCIATE PROFESSOR OF
ENVIRONMENTAL STUDIES AND A
CLIMATE ACTIVIST. FOR THE LAST
FEW MONTHS AND ESPECIALLY THIS
WEEK. THE STRATEGY OF HOLDING ON
TO FOSSIL FUEL INVESTMENTS LOOKS
LIKE A GOOD IDEA. THIS MORNING I
HEARD THAT A PRICE THAT A BARREL
OR OIL IS NOW SELLING FOR A
HUNDRED AND FORTY DOLLARS. AND
THE FOSSIL FUEL COMPANIES ARE
MAKING BIG PROFITS SO IT LOOKS
LIKE A RESPONSIBLE DECISION TO
HOLD ON TO THESE ASSETS. BUT
ALSO THIS WEEK ALTHOUGH IT'S
BEEN KNOCKED FROM THE HEADLINES
BY PUTIN'S TERRIBLE MISADVENTURE
IN UKRAINE. HUMAN LIFE AS WELL
AS MOST OTHER LIFE ON EARTH IS
IN SUCH TROUBLE AS TO DESCRIBE
DESCRIPTION. AUSTRALIA THIS WEEK
IS EXPERIENCING THE WORST FLOODS
IN ITS ENTIRE HISTORY. AFTER
SOME OF ITS WORST FIRES
RESIDENTS OF PLACES LIKE PHOENIX
AND MIAMI NOT TO MENTION LARGE
SWATHS OF PAKISTAN INDIA AND
AFRICA. WILL BE TRYING TO LIVE
THROUGH DEADLY HEAT WAVE HEAT
WAVES. WITH OVER A HUNDRED DAYS
A YEAR OF DEADLY HEAT THE
BARRIER REEF WILL BE MOSTLY IF
NOT COMPLETELY GONE IN DECADES.
WORST OF ALL THE POPULATIONS OF
SMALL CREATURES THAT FEED
EVERYTHING HIGHER ON THE FOOD
CHAIN INCLUDING US ARE
COLLAPSING AS WE SPEAK. INSECT
POPULATIONS HAVE DECLINED BY
ABOUT 70% WHICH- LEADS TO A
BLEAK FUTURE FOR AGRICULTURAL
PRODUCTS. FOR MARINE ANIMALS FOR
BIRDS FOR EVERYTHING IN SHORT
THAT WE DEPEND ON. I MEAN I HAVE
TO ASK YOU TO WRAP UP I
APOLOGIZE JUST STORES FARED
EVERYONE WE'RE TRYING TO
ESTABLISH. I'M SORRY I CAN HEAR
YOU YES WE CAN HEAR YOU OKAY WE
ESTABLISHED A ONE MINUTE A
PUBLIC COMMENT PERIOD PER
SPEAKER SO JUST ASKING YOU TO
WRAP UP. OKAY I ASK YOU AND
THANK YOU GERMAN CORTESE FOR
QUESTION TO CONSIDER THE EFFECTS
ON INVESTMENT PORTFOLIOS OF THE
COLLAPSE OF THE TOURIST INDUSTRY
THE INSURANCE INDUSTRY THE SKI
INDUSTRY THE RECALL STATE
INDUSTRY AND VERY MUCH ELSE I
THINK YOUR POINT WAS WELL TAKEN
THAT A COLLAPSE IN THE CLIMATE
IS JEOPARDIZING ALMOST
EVERYTHING ELSE IN THE CALPERS
PORTFOLIO AND I THINK I'M BEING
ASKED TO QUIT SO I WILL THANK
YOU FOR YOUR ATTENTION. HELLO
THANK YOU FOR YOUR PATIENCE AND
YOUR ATTENTION FOR BEING HERE WE
APPRECIATE THE PUBLIC COMMENTS
OR ANYONE ELSE IN THE GALLERY
THAT WISHES TO SPEAK I SEE NONE-
ORGAN TURN THE MODERATOR
ANNOUNCED THAT- PHONE LINE A
COUPLE OF TIMES- LET'S SEE IF
THERE'S ANYONE WHO WISHES TO
SPEAK AGAIN IF THERE IS- THERE'S
STILL A ONE MINUTE LIMIT PER
SPEAKER. THANK YOU THE PUBLIC
COMMENT YOU MAY PRESS ONE AND
THEN ZERO. I ONE ZERO FOR ANY
PUBLIC COMMENT. INVESTORS NO ONE
IS QUEUING UP AT THE TIME- THANK
YOU- MODERATORS SO THOUGH THAT
CONCLUDES OUR PUBLIC COMMENT-PERIOD- WE HAVE- A MINUTE OR TWO
NOT THAT WE NEED TO USE THAT UP
BUT I DO WANT TO- THE FURNITURE
COOPER IF HE WANTS TO SAY
ANYTHING ELSE- I HAVE- IN FACT
HAD MY SAY- AND- WE'RE GONNA GO
AHEAD AND- CONCLUDE THIS. JOINT
MEETING OF THESE TWO COMMITTEES
AT THIS TIME OF THE MEETING IS
HEREBY ADJOURNED THANK YOU TO
EVERYONE.