PUBLIC PENSION FUND INVESTMENTS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Deletes constitutional provisions specifying percentage and type of stocks and corporations in which public pension funds may invest. Substitutes provisions empowering Legislature to authorize investment of public pension funds by fiduciary who must discharge duties solely in interest and for exclusive purposes of providing benefits to participants and their beneficiaries, minimizing employer contributions, and defraying reasonable administrative expenses; discharge duties pursuant to specified prudent person standard; and diversify investments pursuant to specified standard. Declares public pension funds assets are trust funds held for exclusive purpose of providing benefits and defraying reasonable administrative expenses. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: This measure would have no direct fiscal effect on the state or local governments. The indirect fiscal effect of this measure would depend on the extent to which the rate of return on the investments of public retirement funds is higher or lower than what it would have been in the absence of the additional flexibility authorized by this measure.
Legislative Vote Results
Assembly - Ayes, 71; Noes, 2 -- Senate - Ayes, 38; Noes, 0
Popular Vote Results
Y: 2440568; A: 53.2; N: 2148729; B: 46.8
Assembly Constitutional Amendment
Code Sections Affected
Amended Cal. Const. art. XVI, section 17
Louis J. Papan, Member of the Assembly, 19th District; Larry Stirling, Member of the Assembly, 71th District
Pat Nolan, Member of the Assembly, 41st District; Jake Petrosino, Member, Board of Administration, Public Employees' Retirement System, State of California
Rebuttal Against Author
Louis J. Papan, Member of the Assembly, 19th District
Public Pension Fund Investments. California Proposition 21 (1984).