CalPERS is sponsoring Assembly Bill 2473 (Cooper), exempting “private loans” made by a “Public Investment Fund” from the California Public Records Act (CPRA).
“Private loans” are a new and untested investment strategy which has not been commonly used for the investment of money held in trust to fund public pension obligations. These loans only have the potential to yield high interest if they are made to borrowers with a high risk of default — or even bankruptcy.
The California Retired Public Employees Association (RPEA) has offered amendments that would require such “private loans” to be subject to public disclosure once they become assets held in trust by a public pension fund. Placing public trust funds into secret investments is a recipe for disaster. Keeping the transparency required by current law assures that the taxpayers will not be left holding the bag for losses caused by risky loans of public funds.
Evelyn Naake, president
Grass Valley Chapter 78 Retired Public Employees Association (RPEA)