TRB Approves Campaign Contribution Limits
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 meeting September 6, 2007, the board approved regulations restricting campaign contributions to board members and the Governor. The restrictions apply to individuals and businesses who are seeking an investment relationship with CalSTRS. They are the first of their kind for California public pension plans.
“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.
“As pension fiduciaries and strong advocates of good governance practices, we felt these regulations were an important step,” said Jack Ehnes, CalSTRS chief executive officer. “It sends a strong message to our business partners and membership that protecting the system's integrity is paramount.”
The board action was part of a rulemaking process that began in December 2006 when the board approved proposed regulatory language. That action was followed by public hearings and review of written comments from the public, including members of the business and investment communities.
The regulations were approved by the Office of Administrative Law and filed with the Secretary of State on October 29, 2007. They went into effect on November 28, 2007.
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