HomeMy WebLinkAboutCC RESO 13,634RESOLUTION NO. 13,634
RESOLUTION SUPPORTING AN INVESTIGATION AND ANALYSIS
OF THE INVESTMENT POLICIES OF THE CALIFORNIA PUBLIC
EMPLOYEES RETIREMENT SYSTEM IN AN EFFORT TO INCREASE
RATE OF RETURN
WHEREAS, the California Public Employees Retire-
ment System includes 357,157 members who are employed by
local public agencies as of June 30, 1980, and
WHEREAS, a formal presentation was made to the
PERS Board of Administration at its April 22, 1981 meeting
in Los Angeles, requesting a change in PERS investment, and
WHEREAS, as of this date, no action has been taken
by the PERS Board of Administration indicating a change in
investment policies is imminent, and
WHEREAS, Federal Treasury Notes, Federal T-Bills,
Certificates of Deposit and Short Term Commercial Paper
have been yeilding interest rates ranging from 12% to 20%
over the past 30 months depending on amount invested, and
WHEREAS, 49% of the PERS $12.85 billion invest -
Trent portfolio as of June 30, 1980, was placed in bonds,
many of which are long term investments, some yielding as
low as 4%, and
WHEREAS, only 4.l% of the PERS investment port-
folio was placed in short term investments at a time when
money market funds are earning up to 20% for large invest-
ments;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of National City that it hereby supports and
concurs in the adoption of that certain resolution to be
presented for adoption at the annual League of California
Cities conference to be held in October, 1981, and which
in effect states:
1. That the California Public Employees Retire-
ment System (PERS) is not currently meeting the 2nd and 3rd
objectives of its stated "Investment Objectives";
2. That the League of California Cities take
appropriate action to influence the PERS Board of Adminis-
tration to change its investment strategy in a concerted
effort to maximize earnings;
3. That the League of California Cities take
appropriate action to influence the PERS Board of Adminis-
tration to institute a procedure to increase opportunities
to examine investment decisions in view of current market
conditions;
4. That the League of California Cities aggres-
sively oppose passage of Senate Constitutional Amendment
21, or any similar legislation, which would increase the
existing 25% PERS portfolio ceiling on PERS stock market
investments;
5. That the League of California Cities sponsor
legislation to expand membership of the PERS Board of Admin-
istation and PERS Investment Committee to ensure representa-
tion of public agency employers, such additional positions
to be filled by appointment of the President of the League
of California Cities;
6. That the League of California Cities support
sub -committee of the Assembly Finance, Insurance and Commerce
Committee, presently investigating the investment policies
of the California Public Employees Retirement System;
7. That PERS member cities, member counties, indi-
vidual members and public agency employee organizations,
write letters and personally appear before the PERS Board
of Administration requesting a full review of current invest-
ment policies;
8. That such an effort to maximize interest earn-
ings from the PERS investment portfolio will benefit PERS
member cities and individual members, as well as reduce the
need for employer rate increases funded from tax revenues.
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PASSED AND ADOPTED this 15th day of September,
1981.
ATTEST:
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CITY CLE r