WHY RESPONSIBLE INVESTING MATTERS TO PUBLIC EMPLOYEES.
In 2011, CalPERS nominated Priya to serve on the board of the Principles for Responsible Investment, a global organization that CalPERS helped found in 2006. PRI sets a global standard for responsible investing that serves two important goals of CalPERS--to engage with institutional investors around the world to reduce risk and increase long-term shareholder value.
Priya strongly opposes pension reform that makes new employees bear the risk of retirement security by forcing them into defined contribution or cash balance plans. These types of defined contribution plans are useful supplemental savings mechanisms, but, when used as a worker's sole means for saving for retirement, leave workers with the risk that they will outlive their retirement savings.
She also feels strongly that pension promises made to current employees must be honored. She vigorously supports the California Rule. We do not need new legislation that would challenge the California Rule or reduce promised benefits. Further, public employers should be the model for all employers in how they foster their employees' retirement security. Defined benefit plans are the right tool to achieve reasonable retirement security.