Tag: Henry Jones

Thanks to Assembly Bill 33, introduced by Assemblymember Rob Bonta, D-Alameda, the state Legislature will spend time and resources to codify an issue that California pensioners have spoken on before: divesting from high-performing funds for political purposes. AB 33, as written, would require that state retirement systems, namely California Public Employees Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), divest of all investments in private corrections companies and disallow investing in those same companies in the future. Specific numbers for the amount of money CalSTRS has lost through divesting from private corrections companies are not readily available but all CalSTRS divestment efforts from 2000 through 2018 have cost the fund’s retirees an accumulated $6 billion. The most basic argument against this bill is one against divestment generally. Divesting destabilizes an investment portfolio at the cost of public servants’ retirement and future stability. California pensioners have a reasonable expectation that retirement funds will be responsibly invested and managed now and in the years to come. Further, there is often a misconception that these companies have a role in shaping the public policy that is the target of activist agendas, like Bonta’s call for divestment. In October 2018, CalPERS elected a new board member over the divestment issue. When a pension fund is underfunded only two options remain: raising taxes on working people to make up the difference, or to cheating retirees out of the pensions they rely on. — Editor’s Note: Corrects 9th graf to identify Jason Perez as board member, Henry Jones as board president.