Pension Funds are For-Profit

California’s Constitution clearly states the California Public Employees’ Retirement System’s (CalPERS) singular motive is to make profits. I point this out in “Mixing Pensions with Politics” in The Orange County Register:

“California’s constitution entrusts the pension board members with “sole and exclusive fiduciary responsibility over the assets of the public pension,” and stipulates, “Assets shall be held for the exclusive purposes of providing benefits to participants in the pension.”

However, CalPERS board members are not content to merely try to maximize profits. Instead, CalPERS board orders account managers to deviate from the profit system in favor of environmental, social, and corporate governance (ESG) principles. Below is how CalPERS circumvents their fiduciary duties to pension beneficiaries: