Pay to Play Opportunities Eliminated
The Teachers’ Retirement Board has fiduciary responsibility for the considerable assets of the Teachers’ Retirement Fund — the second largest public pension fund in the country. In that role, the board sets investment policy and makes other decisions related to the fund’s investments.
At its September 6, 2007, meeting, the board approved regulations to restrict campaign contributions to board members and the Governor. The restrictions are a first of their kind for California pension plans. The restrictions apply to individuals and businesses seeking an investment relationship with CalSTRS.
"We’re proud of the work we've done as a board toward eliminating 'pay to play' opportunities," said Board Chair Dana Dillon. "We currently operate at the highest ethical level. Moving forward with these regulations underscores our commitment to conflict-free investment decisions."
The regulations:
- Restrict campaign contributions to board members and the Governor in a 12-month period to no more than $1,000 per donation or $5,000 total.
- Require board members to recuse themselves from decisions involving any of their donors who make a campaign contribution greater than the contribution limits.
- Disqualify a party who violates the regulations from engaging in future or additional business with CalSTRS for two years.
The regulations were approved by the Office of Administrative Law and went into effect on November 28, 2007.
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