The board of the $356 billion California Public Employees’ Retirement System voted against divesting from private prisons, rebuffing pressure from state lawmakers to drop the holdings.
Board members voted Monday to support a staff recommendation focused on engaging companies to change, while leaving open the possibility that divestment could be evaluated again at a later time.
“It’s shameful the government contracts out private prisons,” board member Jason Perez said at the meeting in Sacramento. Even so, he added, “That’s not the priority. The priority is to make money.”
California’s two giant pension funds have faced mounting pressure over their private-prison...