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Understanding financial statements, balance sheets, economic principles and actuarial methodologies are among a set of new core competencies that are desired for those that might serve as a member of the CalPERS Board of Administration.
The complete list of competencies, recently adopted by the Pension Fund's Board, specify more than 20 criteria in the areas of board governance, health care, pension plans, financial markets and communication. They will be part of the CalPERS Board governance policy and will be used to develop future training and educational opportunities for Board Members.
"The issues and topics we address are some of the most diverse and complex of any entity - public or private - in the country," said Rob Feckner, President of the Board. "These criteria are designed to enhance the competency of the Board and will help us better serve our members and employers."
The adoption of the competencies represents one more step in CalPERS efforts to strengthen the accountability, transparency and ethics of its Board. In 2011, the CalPERS Board adopted six Principles for Effective Public Pension Fund Governance that reflect commitment of Board Members to be:
- Effective and capable fiduciaries
- Ethical leaders
- Open and accountable to CalPERS stakeholders
- Risk-intelligent and insightful in their decisions
- Focused on a long-term view for the needs of our members, retirees and their families
- Committed to continuous learning, while adapting to changing environmental, political and economic conditions
Additional governance reforms adopted by CalPERS over the last two years call for:
- Each Board Member to sign a statement acknowledging their fiduciary responsibilities in conjunction with fiduciary training and self-assessment processes.
- An independent third party to assess Board performance once every two years.
- New roles and responsibilities for the Board President, Vice President, Committee Chairs and Vice-Chairs.
- A new structure for the Board and its committees that reserves powers and outlines responsible parties for approvals, standards of conduct, strategy, policy and performance.
CalPERS is the largest public pension fund in the U.S., with more than $278 billion in assets. We administer health and retirement benefits on behalf of 3,064 public school, local agency and state employers. Our members number more than 1.6 million in our retirement system and more than 1.3 million in our health plans. For more information about CalPERS visit www.calpers.ca.gov.
