California taxpayers and retirees deserve honesty, competence, and transparency from the state’s pension system. Instead, they have been handed over one of the largest financial scandals in CalPERS history — more than $3 billion in losses tied to politically motivated “Green New Deal” investment schemes that were doomed from the start.
This debacle is not just a matter of poor judgment or market volatility. It is the inevitable result of a pension board captured by political ideology, insulated from public scrutiny, and comfortable gambling with money that does not belong to them.
The numbers tell a damning story. In 2007, CalPERS committed approximately $468 million to its “Clean Energy & Technology Fund,” a portfolio marketed as cutting-edge and socially responsible. Nearly two decades later, that investment has lost 71 percent of its value. Only $138 million remains. Meanwhile, CalPERS paid over $22 million in fees to the investment managers overseeing the collapse.
If CalPERS had simply placed that same $468 million in a basic S&P 500 index fund, the portfolio would be worth over $3.3 billion today. The difference — the loss — will ultimately be borne by taxpayers, school districts, cities, and retirees.
Rather than confronting these failures openly, CalPERS has chosen to hide the ball. The pension fund refuses to release full financial records, hides behind exemptions in transparency laws, and presents partial data that obscures the true extent of the losses.
This shady approach might be expected from a private hedge fund trying to protect its reputation so it can continue to dupe investors or escape regulatory sanction — not from a public institution entrusted with the retirement security of more than two million Californians.
This scandal exposes a pattern that has plagued California governance for years: when ideology replaces fiduciary responsibility, and when political insiders are rewarded regardless of performance, the public loses. These investments were not selected because they promised strong returns; they were selected because they aligned with the political preferences of Sacramento’s ruling class and benefited the right network of donors and consultants.
That is why I have formally requested a federal investigation into CalPERS’ actions.
California taxpayers and our retirees cannot rely on state officials to police their own political allies. The Department of Justice must examine whether CalPERS violated its fiduciary duty, misrepresented losses, concealed conflicts of interest, or improperly paid millions in fees to politically connected firms. A pension fund of this size and influence cannot operate without accountability.
The consequences of this mismanagement are not confined to balance sheets. When CalPERS loses billions, taxpayers are forced to fill the gap. Cities are compelled to divert funds from police, fire, and education to meet rising pension obligations. School districts face budget cuts. And retirees — the very people CalPERS is supposed to serve — are left questioning the long-term stability of the system they depend on.
California cannot afford a pension system that serves as a political experiment or a rewards program for insiders. We need a system focused solely on financial performance, transparency, and long-term stability. That means independent audits, clear reporting requirements, and strict safeguards to prevent political interference in investment decisions.
The CalPERS scandal is a warning — and an opportunity. If we confront this failure honestly and demand reform, we can protect taxpayers and retirees from further damage. If we ignore it, the costs will continue to climb, and California families will continue to pay the price.
I intend to pursue this issue relentlessly. Corruption and incompetence thrive when no one challenges them. Californians deserve better than a pension fund that plays politics with their futures, and I will keep fighting until accountability replaces secrecy and responsibility replaces ideology.