Retirees vie for CalPERS opening

For the first time in nearly two decades, retired state and local government workers will tap a new voice as their advocate on California's influential public pension fund board.

Two high-profile retirees with strong labor backing and a retired city finance chief are vying to succeed veteran trustee Robert Carlson, who is retiring this winter after 37 years on the board of the $245 billion California Public Employees' Retirement System.

The race is the first contested election for the seat representing CalPERS retirees since 1991. The campaign could generate more interest than in past races and boost normally low voter turnout -- often below 20 percent.

"This (election) kind of represents the stepping down of the old guard," said James McRitchie, a longtime CalPERS watcher and corporate governance advocate in Elk Grove. "It's time for new ideas and insights."

The candidates, all CalPERS retirees, are:

• Susan Bergeron-Vance, 57, of Lakewood, formerly director of finance and administrative services for Santa Fe Springs, a small Los Angeles County city with an annual $50 million operating budget.

• Henry Jones, 67, of Los Angeles, a school custodian who rose to become chief financial officer of the Los Angeles Unified School District, the nation's second-largest school system.

• Perry Kenny, 61, of Sacramento, a former tax consultant to one-time Board of Equalization Commissioner Claude Parrish. He also taught state prisoners and served several years as president of the California State Employees Association, the largest state employee labor organization representing 140,000 members.

CalPERS will mail ballots Monday to the 393,000 retired members eligible to vote. The voting period ends Sept. 28. If no candidate receives a majority of the votes cast, a runoff will be held in November.

Because of this year's wide-open election, the candidates are counting heavily on the support of labor groups across the state to gain a coveted seat on the 13-member board of the nation's largest public pension fund.

Known for its shareholder activism and enormous influence in the corporate world and financial markets, the CalPERS board makes benefit decisions on behalf of 1.5 million members working for the state and some 1,500 cities, counties and other public agencies.

CalPERS is the nation's third-largest purchaser of health benefits, spending about $5.3 billion a year to cover 1.2 million people.

Historically, CalPERS campaigns are low-key and limited to volunteers handing out fliers and candidate visits to employee and retiree groups around the state. Mass campaign mailings are often too expensive.

John Pitney, a political scientist at Claremont McKenna College in Claremont, likens the race to local elections for judge.

"Endorsements matter the most when information is scarce," Pitney said. Internet searches are the best way to learn more about these candidates, he said. But "that requires some investment of time and knowledge on how to do a good search."

Jones and Kenny are the acknowledged front-runners, thanks to union backing. Bergeron-Vance is relying on a tiny budget and on a small group of backers from Santa Fe Springs to pull an upset.

"I am the underdog," said Bergeron-Vance, who retired a year ago after working 30 years with the Southern California city of 17,000 residents. "I have the actual hands-on experience of dealing with the issues confronting employees, employers and public agencies. My management experience scares the unions."

All three support the fund's current investment strategy and initiatives to combat rising health-care costs, give shareholders greater access to the corporate boardroom and oppose runaway executive pay.

They vow to protect the current guaranteed pension benefit structure -- called a defined benefit program. Former Assemblyman Keith Richman, a vocal critic of CalPERS and other major public funds, is leading an initiative drive that would slash public pension costs by giving a less generous benefit to new state and local government employees and increasing the age to qualify for full benefits.

About the writer:

• The Bee's Gilbert Chan can be reached at (916) 321-1045 or gchan@sacbee.com.