{"id":2245,"date":"2026-05-19T12:32:06","date_gmt":"2026-05-19T12:32:06","guid":{"rendered":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/19\/effort-to-require-calpers-private-equity-disclosures-stalls-in-capitol\/"},"modified":"2026-05-19T12:32:06","modified_gmt":"2026-05-19T12:32:06","slug":"effort-to-require-calpers-private-equity-disclosures-stalls-in-capitol","status":"publish","type":"post","link":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/19\/effort-to-require-calpers-private-equity-disclosures-stalls-in-capitol\/","title":{"rendered":"Effort to require CalPERS private equity disclosures stalls in Capitol"},"content":{"rendered":"<article><!-- --><!-- --><!-- WPS-5038 -- removed the script from WPS and added the placeholder for trinity player --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- CONTENT --><!--[--><!--[--><\/p>\n<p>On Monday, the board overseeing California\u2019s $624 billion pension fund was scheduled to meet and adopt a stance on a bill that posed, in the staff\u2019s position, a major threat to the retirement system\u2019s future.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/19\/sacramento-da-ho-claims-credit-over-ice-refusals-does-he-play-any-role\/\">Sacramento DA Ho claims credit over ICE refusals. Does he play any role?<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>But that meeting was cancelled because the powerful Senate Appropriations Committee axed the measure, which would have required the California Public Employees\u2019 Retirement System to disclose information about its investments in private equity, before the board even had to consider publicly opposing the bill. Lawmakers in that committee decided to hold Senate Bill 1319 on the committee\u2019s suspense file last week, meaning the legislation is effectively dead.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Sen. Dave Cortese, D-San Jose, one of the authors of the now-stymied \u201cPrivate Equity Sunshine Act,\u201d said it was disappointing that CalPERS was opposed to transparency measures he sees as necessary to ensure private equity investments are performing well against public markets.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cWhat\u2019s more disappointing is for appropriations to kill the bill this early in the process,\u201d Cortese said. \u201cIt really cheated people out of the debate.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Ahead of Monday\u2019s meeting, the pension funds staff outlined the potential fiscal impacts of this legislation on the state, local governments and members. CalPERS CEO Marcie Frost said the pending bill would prevent the fund from investing in private markets and put the massive retirement system at a disadvantage compared to other pension systems, noting that over long periods of time, private equity has been the highest-returning asset class.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cI hope we were heard about our concerns about the financial impacts of the bill as it was currently written,\u201d Frost said in a Monday interview. \u201cI\u2019m happy it\u2019s not moving forward.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The bill\u2019s demise comes as various stakeholders continue calls for more transparency around how much CalPERS pays external fees to managers and its reliance on private equity assets.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>One of those transparency pushes is a new documentary about the growth of private equity investments in public pension funds. That movie is being premiered on Tuesday by the Retired Public Employees\u2019 Association of California, a retiree group that both supported Cortese\u2019s legislation and has paid for a third-party investigation of CalPERS\u2019 investment strategies.<\/p>\n<p><!--]--><!--[--><\/p>\n<h2>The cost of transparency<\/h2>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>CalPERS staff prepared a lengthy presentation to convince the board to take a public stance against the bill. By the investment staff\u2019s assessment, requiring CalPERS to disclose information about fund managers and detailing comparisons between private equity investments compared to public markets would have had a significant, negative impact on the massive pension fund.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cThis is estimated to reduce the total funded status of the system by 5% and increase employer contributions by $6.1 to $6.8 billion annually,\u201d reads a document prepared by the retirement system.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The legislation, CalPERS staff said, could lead to higher contribution rates for members too. For state workers who have a salary of $80,000, they could pay $900 more a year to make up lost investment returns if California passed such a measure, according to the estimates.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>The bill threatens CalPERS\u2019 future because it would push private equity funds to look for other investment pools outside of California, rather than give up trade secrets, the pension fund\u2019s staff wrote. The retirement system\u2019s warnings also stated that \u201cmany innovative startup companies will be reluctant to consent to the public disclosure of confidential and proprietary information.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Cortese said these estimates were overblown.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cThey really, in my opinion, took what I call a \u2018chicken little\u2019 kind of posture: \u2018The sky is falling,\u2019\u201d he imitated. Cortese said he didn\u2019t believe that \u201cmassive amounts of investment opportunity\u201d would disappear from the largest pension fund in the country.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>RPEA President Margaret Brown echoed those concerns. She said that the bill may have died due to \u201cwildly overstated fiscal implications.\u201d She said that the information the bill would have required CalPERS and other pension systems to disclose is already collected, maintained and reported internally. The measure is a reasonable step to maintain public confidence and ensure retirement assets operate with transparency instead of asking stakeholders to simply \u201ctrust the process,\u201d Brown said.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cAdditionally, the bill may have failed because of powerful private equity interests and their allies that continue to resist even modest transparency measures involving public pension investments,\u201d Brown said in a statement.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/19\/peta-criticizes-kittle-hopefuls-for-ca-governor-top-sacramento-stories-for-may-18-2\/\">PETA criticizes Kittle, hopefuls for CA governor. Top Sacramento stories for May 18<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Frost said the fiscal impacts of Cortese\u2019s legislation were put together by investment professionals at CalPERS who work in this area every day.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cThe other thing I would say is the markets are cyclical. There are going to be times the public markets will outperform private markets, or there will be times that private markets will outperform public real, estate, etc.,\u201d Frost said. \u201cWhat we try to do is really diversify to assets, and we see private markets as a diversifier.\u201d<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Though the measure is effectively dead for the remainder of the session, Cortese vowed to run the bill next year.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<h2>Pension Fight Club<\/h2>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The bill\u2019s demise came just days before a filmmaker plans to release a documentary on the topic of private equity\u2019s investments in pension funds.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The film, titled Pension Fight Club, features CalPERS but does not focus on the massive California retirement system. In a release describing the premier, RPEA described the film as \u201ca powerful national event focused on transparency, accountability, and protecting the retirement security public employees earned through a lifetime of service.\u201d<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Director Doug Orchard said he was drawn to producing a film about pensions after talking with several sources across the country about their experience trying to push for more transparency around these types of investments, but found that these stakeholders were sidelined.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>\u201cAll they seem to be asking for is more transparency, and I think it\u2019s a fair ask,\u201d Orchard said. \u201cThe film shows what happens when you\u2019re a board member and \u2026 you try to ask for more transparency, what happens to you, and without question, you become targeted.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>He pointed to two former CalPERS board members, Brown and RPEA Director of Health Benefits JJ Jelincic, as examples of this phenomenon occurring in California.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Brown and Jelincic were both CalPERS board members who lost their seats in 2021 and 2019, respectively, after unions spent hundreds of thousands of dollars to support their opponents. Prior to his loss, Jelincic was accused of harassing women who worked for CalPERS and encouraged to drop out of the race by several state officials.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Both have been vocal skeptics of the retirement system\u2019s investments and what they see is a lack of transparency afforded to the public. Jelincic said that both pensioners and board members deserve to know more about private equity investments. Private equity investment managers have made claims that the lack of transparency is part of what makes these assets more lucrative.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Jeincic also rejected CalPERS claims that the now-defunct transparency bill supported by RPEA would have significantly hampered the fund.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cThe argument staff is making \u2026 is that the private equity industry will just walk away. But they will take a lot of abuse before they say I won\u2019t take your half billion dollar check,\u201d he said.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The topic of how to continue the push for more transparency is likely to surface during the Q&amp;A portion of Orchard\u2019s film after its Tuesday showing.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Pension Fight Club premiers at 6:00 p.m. on Tuesday, May 19 at the Crest Theater in Sacramento.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/19\/misleading-unsigned-postcard-urges-california-man-to-vote-for-two-candidates-2\/\">Misleading, unsigned postcard urges California man to vote for two candidates<\/a><\/p>\n<p><!--]--><!--]--><!-- --><!-- --><!-- --><!-- --><\/article>\n","protected":false},"excerpt":{"rendered":"<p>A bill to force CalPERS to disclose private equity investments was killed, reigniting debates in Sacramento over transparency, fees and the future of California pensions.<\/p>\n","protected":false},"author":1,"featured_media":2244,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,8],"tags":[],"class_list":["post-2245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capitol-alert","category-the-state-worker"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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