Last week in this post, I wrote about the California Controller John Chiang’s announced intention to sponsor legislation to shut the revolving door between California’s two largest public retirement systems, CalPERS and CalSTRS, and the private sector. Last week, Assemblyman Warren Furutani introduced AB 873. Below is the Legislative Counsel’s description of the bill:
This bill would prohibit an individual, who was a member of the retirement board of PERS or STRS or an administrator, executive officer, investment officer, or general counsel of the system, from accepting employment, within 2 years after separation from the system, with any employer with which the individual participated personally and substantially with contracts or investments valued greater than $10 million any time in the previous 5 years while the individual was employed by, or served on the board of, the system, as specified. The bill would except from that prohibition a former employee of PERS or STRS working for any entity whose principal market is unrelated to the individual’s prior service.
The bill would also prohibit an individual from, for 2 years after separation from the system, accepting employment with any placement agent who has successfully placed an investment with either PERS or STRS during the prior 10 years.