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City Council Interoffice Communication
To: Honorable City Council Members
From: Mike Posey, Mayor
Date: October 8, 2018
Subject: CITY COUNCIL MEMBER ITEM FOR THE OCTOBER 15, 2018,
CITY COUNCIL MEETING — EXPLORATION OF LEGAL
REMEDIES TO HOLD CALPERS ACCOUNTABLE TO THEIR
FIDUCIARY RESPONSIBILITIES
STATEMENT OF ISSUE:
The mission of CalPERS is simple, "Deliver retirement and health care benefits to members and
their beneficiaries." This mission is slowly being eroded as investment strategies championed
by the California Legislature, like Senate Bill 964 (Allen), seek to direct CalPERS and CalSTRS
to make investments that are "socially and environmentally" responsible. SB 964 is just one
example of the environmental, social, governance investment strategies championed by the
California Legsilature and pushed onto the governing Board of CalPERS. The CalPERS
website sites their pension beliefs one of which states, "as a leader, CalPERS should advocate
for retirement security for America's workers and for the value of defined benefit plans..." How
can the Board achieve these goals when they are forced to direct their participants funds into
investments that often do not yield profits that will make their promised returns? Thus, passing
the buck onto municipalities and special districts who are left to make cuts to services to fund
their mistakes.
RECOMMENDED ACTION:
Direct the City Attorney to explore any and all legal remedies to hold CalPERS accountable to
their fiduciary responsibilities of providing a sustainable retirement system for those that serve
California. Return to City Council within 90 days with a proposed strategy.
Cc: Fred Wilson, City Manager
Lori Ann Farrell, Assistant City Manager
Robin Estanislau, City Clerk
Michael Gates, City Attorney
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File #: 18-429
City of Huntington Beach
MEETING DATE: 10/15/2018
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Mike Posey, Mayor
Subiect:
Item Submitted by Mayor Posey for the October 15, 2018, City Council Meeting - Exploration
of Legal Remedies to hold CalPERS Accountable to their Fiduciary Responsibilities
Statement of Issue:
The mission of CalPERS is simple, "Deliver retirement and health care benefits to members and their
beneficiaries." This mission is slowly being eroded as investment strategies championed by the California
Legislature, like Senate Bill 964 (Allen), seek to direct CalPERS and CalSTRS to make investments that are
"socially and environmentally" responsible. SB 964 is just one example of the environmental, social,
governance investment strategies championed by the California Legislature and pushed onto the governing
Board of CalPERS. The CalPERS website sites their pension beliefs one of which states, "as a leader,
CalPERS should advocate for retirement security for America's workers and for the value of defined benefit
plans..." How can the Board achieve these goals when they are forced to direct their participants funds into
investments that often do not yield profits that will make their promised returns? Thus, passing the buck onto
municipalities and special districts who are left to make cuts to services to fund their mistakes.
Recommended Action:
Direct the City Attorney to explore any and all legal remedies to hold CalPERS accountable to their
fiduciary responsibilities of providing a sustainable retirement system for those that serve California.
Return to City Council within 90 days with a proposed strategy.
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