CA Officials Reported Drafting Placement Agent Bill
November 9, 2009 (PLANSPONSOR.com) – Legislation currently being drafted in California would force pension placement agents to register as lobbyists in that state and would eliminate a pay plan for the agents where their compensation is tied to the amount of an eventual pension mandate.
A Wall Street Journal news account, quoting anonymous sources, said California Controller John Chiang and Treasurer Bill Lockyear are working on the proposals. Both are board members of the California Public Employees’ Retirement System (CalPERS).
The Journal said the proposal would also require all compensation to be disclosed, ban placement-agent campaign contributions, and establish a $10 monthly limit on gifts to pension officials from any individual at a placement-agent firm.
The California proposal is expected to be discussed at a CalPERS board meeting in November, according to the Journal.
Last month, CalPERS launched a “special review” as it disclosed that a placement-agent firm run by a former CalPERS board member received tens of millions of dollars from money managers that hired it to get CalPERS business.