The California Public Employees’ Retirement System (CalPERS) Board of Administration will implement changes to its committee structure this month as a result of a comprehensive review of its governance policies and practices.
CalPERS board committees have been restructured, reducing the number of committees from seven to six. A recommendation before the Board next week will also call for the elimination of the pension fund’s Investment Policy Subcommittee, further reducing its committees to five, if approved.
In addition, the meeting agenda format was streamlined, and a consent calendar was added to board and committee meeting agendas.
“These reforms will result in a much more effective board,” said CalPERS Board President Rob Feckner, who initiated the changes. “They will enhance board oversight, accountability, and decision-making.”
The most significant board committee change is the consolidation of the former Benefits and Program Administration and Health Benefits committees into a new committee, the Pension and Health Benefits Committee. The new committee will focus exclusively on benefit issues.
Administration issues will be part of a new Finance and Administration Committee. Audit compliance issues will now be addressed in a new Risk and Audit Committee. The Investment, Board Governance, and Performance and Compensation committees did not change.
A diagram illustrating committee structure changes can be found on CalPERS website.
CalPERS, with assets of approximately $230 billion, is the largest public pension fund in the U.S. It administers retirement benefits for more than 1.6 million California state, local government, and public school employees, retirees, and their families on behalf of more than 3,000 public employers, and health benefits for more than 1.3 million enrollees. The average CalPERS pension benefit is $2,332 per month. The average benefit for those who retired in the most recent fiscal year that ended June 30, 2011, is $3,065 per month. More information about CalPERS is available at www.calpers.ca.gov.