Proposition Summary

PUBLIC PENSION FUND INVESTMENT. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Constitution presently permits Legislature to authorize public pension and retirement funds to invest up to 25 percent in common stock of corporations meeting prescribed standards. This measure permits authorizing public pension and retirement systems to instead invest up to 60 percent in such common stock and, within the 60 percent, 5 percent in stock of corporations not meeting certain present standards. Permits Legislature, within both limitations, to authorize 0.5 percent investment in corporations whose assets are in nonpublicly traded equity instruments. Provides assets of public pension or retirement funds are trust funds. Prescribes fiduciary standards for their investment. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: If implemented, could result in opportunities for increased earnings through higher dividends and capital gains, accompanied by greater risk to the participating public pension or retirement funds, which could entail capital losses to the funds.

Proposition Number

6

Year

1982

Document Type

Proposition

Pass/Fail

Fail

Legislative Vote Results

Assembly - Ayes, 65; Noes, 3 -- Senate - Ayes, 27; Noes, 10

Popular Vote Results

Y: 2650290; A: 39.2; N: 4110123; B: 60.8

Election Type

General Election

Proposition Type

Senate Constitutional Amendment

For Author

Barry Keene, Democratic State Senator, 2nd District; Larry Stirling, Republican Member of the Assembly, 77th District; Dr. Brian M. Neuberger, Professor of Finance, San Diego State University PERS Member

Against Author

H. L. Richardson, State Senator, 25th District; Jake Petrosino, President, PERS Retirement Betterment Committee Inc.

Rebuttal Author

H. L. Richardson, State Senator, 25th District

Rebuttal Against Author

Barry Keene, Democratic State Senator, 2nd District; Larry Stirling, Republican Member of the Assembly, 77th District; Dr. Brian M. Neuberger, Professor of Finance, San Diego State University PERS Member

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