he was the top official at calpers from 2002 to 2008.hey say he has steered contracts to clients represented by his friend who earned more than $58 million from the calpers deal. it was the second big legal action to come out of the scandal. the two men were sued by the state in 2010. that case is still pending. >>> california voters will get the chance to decide if the state should abolish the death penalty this november. supporters of the ballot measure announced today they have enough signatures to qualify for the ballot. the secretary of state is expected to finalize the move later this week. supporters want to replace capital punishment with life in preside prison without the possibility of parole. >>> disgruntled at the dmv, vandalism of an employee vehicle could be the work of an angry customer. whoever tried to set the cadillac escalade on fire failed for the most part. the fire department got to the parking lot in time to put the fire out before the suv was completely destroyed. but repairs will clearly be expensive. >> an arson

the real reason they voted behind it and the person looking out for your interest here was calpers, the real strong money manager, handles the california pension system. >> we've run out of time. thanks for being with us. >> my pleasure.

explain the vote at calpers. why did you vote against this pay package? >> it was a simple vote.jected the proposal because city have not demonstrated that they're making awards of performance pay for long-term performance and that's what we as the owners really need to see. >> warner: so are you saying the amount of money was too big or you don't like that way the compensation package is structured? >> it's... we're share owners, we're not management. it's not our job to nickel and dime individual amounts. but what we want to see is full transparency, that's the first thing, we need to understand what's going on and we also need to see that performance targets are anchored to the long term. and that information was simply missing. and, remember, mr. pandit joined as chief executive at city, thee share price was something on the average of $340 per share. when i looked yesterday afternoon it's hovering just over $35. so because we're long-term owners we're still looking not at just what's happened since the financial crisis, we're really looking ahead. that's our focus. >> warner

pension funds, you know, a schoolteacher in california may be invested in the hedge fund through calpers. this gives them maybe the ability to understand and manage their retirement portfolios a little bit better. >> precisely. you're spot-on. that's the question we get a lot. is this just a solution for the 1%? but what people don't understand is that of the $2 trillion in assets in hedge funds, over $1 trillion is coming from pension funds. so teachers, policeman, firemen and so forth. basically, historically, the investors would get a monthly statement either the hedge fund or administrator. now they can get streaming near realtime information. it limits the possibility of a fraud like madoff from ever happening. >> good news too for the engineers calpers would have the ability to go, oh my gosh, we're underperforming, we need to make changes. we don't want an annual statement and say by the way we missed our target by 8%. some people will be struggling to get paid. >> precisely. onced data is there you can create analytics never created. without the data, you don't have any idea what

we do not know how to get our calpers around this subject and it is a real challenge. -- our calipers around the subject and it is a real challenge. >> [unintelligible] regionalist but i have been doing this a lot and i have the advantage of being from the region myself. i can kind of understand some of the things. one of the things we have not come to terms with is the collapse of the soviet union has changed the world. in the old days, when you had an absolutely dominant paradigm, you could have even during the cold war, i remember one of the books i read as a graduate student in england. it was called "nations in alliance." the great powers generally what alliances to achieve their broad game -- gain. the local states what alliances to help them in their local little games. this is a symmetry that exists between that great power and the local powers, has become much more pronounced and strengthened. [unintelligible] the soviet union. i am sorry to say that the policy community, i am sure they know it in their private deliberations but we do not seem to understand quite well that ou

it is spent part of the program for the past five decades a calpers cents '90s pro o well-designed program can take fall advantage of competition to decrease spending increase the value to beneficiaries broker it is time we tried it did we can find bipartisan agreement moving forward. >> mr. aaron is recognized five minutes. >> thain keogh representative herger and you have written statement i would like to begin with what i think is the central issue that divides us that are opposed to the premium support the idea. all of us recognize there are four-- reforms to improve the operation. we will all like to see cost competition played the enhanced role. people like to see delivery system reform that has better quality and the lacoste and we hope they will work. maybe unable to. if not who bears the rest of costs rising faster their projections? traditionally those risks are pooled across the population over time. under premium support those risks are shouldered by beneficiaries to our faced with higher out-of-pocket cost them sells. that is the fundamental choice that needs to determine a po

enhancing value in the federal employees' health benefits program for the past five decades and in calperse the 1990s. a well-designed premium support program can take full advantage of market competition to drive up unnecessary spending and increase medicare's value to beneficiaries. it's about time we tried it, and i think we can find bipartisan agreement about moving forward. thank you. >> thank you, mr. antos. mr. aaron is recognized for five minutes. >> thank you, mr. herger and ranking member -- thank you, mr. herger and ranking member stark, also special greetings to congressman price with whom i've had the privilege of working in the past. um, you have my written statement, and it's, i understand, going to be entered into the record. i'd like to begin with what i think is the central issue that divides those of us who are opposed to the premium support idea from those who are in favor of it. i think all of us recognize that there are reforms to the existing medicare program that could improve its operation. all of us would like to see cost competition play an enhanced role. all of