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Jerry Brown calls pension funds’ Iran investments illegal

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State Atty. Gen. Jerry Brown sent letters to the heads of California’s two largest public pension funds Monday, accusing them of violating state law by continuing to invest in companies that do business with Iran.

Brown sent nearly identical letters to CalPERS Chief Executive Ann Stausboll and CalSTRS Chief Executive Jack Ehnes on Monday saying reports filed by the pension funds did not comply with a 2007 law passed by the Legislature requiring the funds to divest in any company that conducts business ‘in the defense, nuclear, petroleum and natural gas industries in Iran.’

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‘Unfortunately, in violation of state law, the report fails to explain why CalPERS [and CalSTRS] continue to invest in companies that do business in Iran,’ the letters state.

Brown’s office asked both pension fund heads to ‘please let us know as soon as possible what specific actions you plan to take to comply with the provisions of the Iran Act.’

CalPERS spokeswoman Pat Macht said Brown’s office ‘thought there should be a bit more information’ in the annual report. ‘If we can clarify anything, or perhaps add to the report, we’re happy to consider that,’ she said.

Brown spokesman Evan Westrup said there was no set time line for the pension plans to respond, but ‘given the fact that these reports are in violation of state law, the sooner this issue is resolved, the better.’

-- Anthony York in Sacramento

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