CalPERS

DEFINITION of 'CalPERS'

The California Public Employees' Retirement System (CalPERS), an organization that provides numerous benefits to its more than 1.6 million members, including health insurance, long-term care insurance, death benefits, mortgage program, and distribution of pension and retirement-related financial benefits. CalPERS Investments is the nation's largest public pension fund and, given its size, it is able to exercise significant pressure to make desired changes within the companies in which it invests.

BREAKING DOWN 'CalPERS'

CalPERS Investments publishes an annual "Focus List," which contains companies with concerning financial performance and questionable or undesirable corporate governance practices. Instead of boycotting these companies – and posing a significant threat to their attractiveness as a business for investment by other firms – the organization works with listed companies to improve their performance. The resulting turnaround for companies on the Focus List has created a phenomenon known as the "CalPERS effect."

RELATED TERMS
  1. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  2. Pension Fund

    A fund established by an employer to facilitate and organize ...
  3. Benefits Payable Exclusion

    An insurance policy exclusion that removes the insurer’s responsibility ...
  4. Other Post-Retirement Benefits

    Benefits, other than pension distributions, paid to employees ...
  5. Statement Of Changes In Net Assets ...

    An income statement that identifies any transactions that alter ...
  6. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
Related Articles
  1. Investing

    AXA Is First Big European Insurer to Quit Tobacco

    Health insurer AXA Group (NASDAQOTH: AXAHY) calls its decision to divest the $2 billion worth of tobacco stocks it holds in its various portfolios an ethical one. CEO Thomas Buberl says that ...
  2. Personal Finance

    How Linked Benefit Insurance Policies Work

    Linked benefit policies can be a viable alternative to traditional long-term care insurance. Here's how they work.
  3. Financial Advisor

    How to Advise Clients with Frozen Pensions

    Financial advisors are on the front line in advising clients impacted by a frozen pension. Here's what they need to consider.
  4. Retirement

    How Pensions, Social Security Differ

    Both pensions and Social Security provide an income stream to retirees, but they differ widely on how they're structured and funded. Here's the lowdown.
  5. Managing Wealth

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
  6. Retirement

    What are Pension Funds?

    A pension fund is a company-sponsored fund that provides income for employees in retirement.
  7. Retirement

    Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.
  8. Retirement

    How Safe Is Your Pension?

    A 2014 law permits some private pension plans to reduce benefits. How to figure out if your retirement income is endangered.
  9. Retirement

    Florida's Surprisingly Flexible State Retirement System

    Retired Florida employees can choose a 401(k)-style investment plan or a traditional pension.
  10. Retirement

    What You Didn't Know About Utah's Retirement Systems

    While Utah isn’t quite as generous with employee retirement benefits as it once was, its contribution rate for new hires is still very competitive.
RELATED FAQS
  1. What will happen to my father's pension if he never added a second beneficiary?

    My dad worked at a company for 40 years where he had a pension. My mom passed away about a year after ... Read Answer >>
  2. The company I am receiving my pension plan from has just filed bankruptcy. Could ...

  3. What is the difference between the death benefit and cash value of an insurance policy?

    Understand the difference between the various components of a life insurance policy including the death benefit and a policy's ... Read Answer >>
  4. Why are insurance companies and pension funds considered financial instruments?

    Find out why insurance companies and pension funds are considered carriers of financial instruments, and what role they play ... Read Answer >>
  5. In what ways does government regulation impact the insurance sector?

    See how government regulation of the insurance sector leads to higher prices, more risk and a system where the consumer has ... Read Answer >>
  6. Why would you want a monthly benefit versus a daily benefit?

    An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center