OTHER NEWS - July 2, 1996

Pension Bill Sent Back for Study: A state Senate committee voted to table a bill that would allow state employees to move retirement assets now in the giant California Public Employees’ Retirement System, and other state pension funds, to private 401(k) accounts. The five-member Public Employment and Retirement Committee voted 4 to 0 to put the issue before a joint Assembly-Senate hearing this fall. The decision kills the proposal as approved by the Assembly in May. CalPERS, with $100 billion in assets, opposed the Assembly bill, arguing it failed to address potential constitutional and tax problems in allowing employees to shift assets out of state funds and into self-directed accounts, such as mutual funds.