Divestment bid is rejected

CalPERS board votes down state treasurer’s proposal on retailers of assault weapons.

SACRAMENTO — Despite pleas from relatives of those killed in the 2015 mass shooting in San Bernardino, the state retirement board on Monday rejected a proposal by California Treasurer John Chiang to consider divesting from retailers that sell assault weapons.

Chiang’s motion was defeated by the Board of Administration for the California Public Employees’ Retirement System, or CalPERS, with nine members voting in opposition and three in support.

Opponents of the motion said divestment would take away their ability as major investors in retail firms to affect store policies on the sale of assault rifles.

“We obviously have a significant problem in this country,” board member Bill Slaton said. But, he added. “We have found engagement is a better alternative in order for us to accomplish something in this arena.”

He noted some retailers have already stopped selling assault rifles and restricted gun sales to those 21 or older.

Chiang, a member of the board and candidate for governor, argued that without a divestment policy, the retirement system loses leverage to force change.

“If we don’t take action nobody is going to take us seriously on engagement,” Chiang said.

The board could still consider divestment next year when it engages in a review of its overall investment policy on social issues, officials said.

The vote came after testimony from relatives of some of the 14 people killed by the mass shooting at the Inland Regional Center in San Bernardino.

Erica Porteus supported the divestment policy, saying her sister was “purposely murdered” in San Bernardino in a manner common to “military warfare.”

“Do everything possible to put a dent in gun violence,” said Arlen Verdehyou, whose wife was killed in the shooting.

The divestment policy was opposed by Phil Jonas, a director with the Peace Officers Research Assn. of California, who said the CalPERS’ priority should be to get the best return on its investment for retirees.

The Chiang proposal, he said, meant retirement system members would “contribute against their will to social causes favored by activists.”

Al Seib Los Angeles Times STATE Treasurer John Chiang, who is running for governor, proposed divesting from assault rif le retailers. The CalPERS board rejected the motion 9 to 3.