California retirees group calls for pension fund president to resign

The head of a group of a California retired public employees organization says that it’s time for CalPERS Board of Administration President Henry Jones to go, after the abrupt departure of the agency’s chief investment officer last month.

The Retired Public Employees’ Association is calling for Jones resignation, saying its demand is “precipitated by your poor judgment and inappropriately secretive manner” in managing the events that led up to the resignation of former CalPERS Chief Investment Officer Yu Ben Meng.

Meng’s departure from CalPERS followed the revelation that he had investments in a private equity fund controlled by Blackstone Group Inc., the same firm which Meng had approved a $1 billion investment back in March.

Meng told The Financial Times last month he disclosed his holdings appropriately. California’s Fair Political Practices Commission has opened an investigation into his disclosures.

Knox’s group is one of the organizations that closely follows CalPERS, a $419 billion fund that administers pensions for 2 million retired and current California government employees.

Her organization endorsed Jones’ opponent, former CalPERS board member J.J. Jelincic, in a 2019 election for a seat on the pension board.

Immediately after Meng’s resignation, Jones released a statement that showed support for the former chief investment officer and suggested Jones knew about questions regarding Meng’s financial disclosures for some time.

“These are private personnel matters and already have been addressed according to our internal compliance protocols,” Jones said in early August.

Knox in her letter said Jones should have shared that information earlier with the rest of the 13-member CalPERS Board of Administration.

“Further, as board president, one of the few legitimate powers you possess is the power to share with the board as a whole any information that you are aware is being kept from it. You cannot claim that you lacked the authority to ensure that the full board was kept informed,” Knox wrote.

Jones responded in a letter to Knox that he will not resign.

“Your letter is reflective of an organization that has been co-opted by those who care more about a political agenda than the best interests of the members it is chartered to represent. I will neither affiliate with nor support such conduct,” Jones wrote.

“I am disappointed but resolute in my belief that RPEA leadership does not currently represent the best interests of retired public employees. Integrity matters, diversity matters and most of all, CalPERS’ members matter,” he wrote.

This story was originally published September 4, 2020 at 6:00 AM.