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Press Release


October 8, 2003


CalPERS Calls Proxy Access Rule Proposal "Good First Step"


System to seek further improvements

SACRAMENTO , CA -- The California Public Employees' Retirement System (CalPERS) today commended Securities and Exchange Commission Chairman William Donaldson and the members of the Commission for launching a proxy access rulemaking proposal and expressed its hope that it will become a platform for further improvements.

"I personally want to acknowledge the courage of Chairman Donaldson and each Commissioner for placing this critical reform proposal on the table," said Sean Harrigan, President of CalPERS Board of Administration. "We share their goal of creating appropriate rules to deal with the worst cases of directors who blatantly fail to respond to shareowners.

"While this is a good first step, we intend to offer further ideas to strengthen the rules' effectiveness."

The proposed rules hinge on triggers to allow for access. Harrigan said that other types of triggers such as event-related triggers may be worth serious study by the Commission.

"The SEC's proposed framework is sound," said Harrigan. "We want to work to improve the specific elements and add additional ideas for their consideration. We look forward to working closely with the SEC in the next several months. Passing this rule should be everyone's top priority. As the SEC has wisely demonstrated, this rulemaking is absolutely critical in the wake of Enron, WorldCom and other financial disasters to restore investor confidence."

CalPERS is the nation's largest public pension fund with assets totaling nearly $147 billion. The System provides retirement and health benefits to 1.4 million State and local public employees and their families. For more information visit www.calpers.ca.gov.

Contact Info:
Pat Macht/Brad Pacheco
Office of Public Affairs
(916) 326-3991

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