Education and Workforce Committee Chairman Tim Walberg, along with Subcommittee Chairmen Rick Allen and Kevin Kiley, have sent a letter to Theresa Taylor, President and Vice Chair of Investment for the California Public Employees Retirement System (CalPERS), regarding recent pension fund losses. The letter seeks information about CalPERS’ investment practices after it lost 71 percent of its nearly half-a-billion-dollar investment in the CalPERS Clean Energy and Technology Fund (CETF).
In their communication, the members stated: “CalPERS as a public pension is eligible for significant tax subsidies if, among other things, its benefits are provided ‘for the exclusive benefit of [an employer’s] employees or their beneficiaries.’ The Committee seeks information to determine whether CalPERS is undermining this requirement by prioritizing a radical [ESG] agenda over its obligation to its beneficiaries….”
They further wrote: “On October 28, the Committee learned that CalPERS lost 71 percent of its nearly half-a-billion-dollar investment in the private equity CalPERS Clean Energy and Technology Fund (CETF). Since committing to CETF in 2007, CalPERS has channeled more than $468 million into the fund…CalPERS’ loss in CETF is just the most recent example of CalPERS prioritizing ESG considerations ahead of its responsibilities to safeguard the pension fund. As of March 31, 2025, the investment’s value was less than $138.1 million.”
The letter concluded: “CalPERS claims significant tax benefits under [Internal Revenue] Code section 401(a), which applies only to plans maintained ‘for the exclusive benefit of [an employer’s] employees or their beneficiaries.’ However, the instances cited above do not appear to be consistent with this rule. To the extent that CalPERS is using plan assets for the benefit of social or political causes, the plan’s qualified tax status is no longer valid.”
The House Education and Workforce Committee oversees federal programs related to education, labor, health, and workforce development. It also influences policy on student loans and worker protections and serves in legislative matters concerning education and labor. The committee monitors government bodies involved in these sectors and advances legislative priorities for students and workers. More information about its role can be found on its official website.
