ocii we provide retirement benefits to our employees with calpers.an francisco labor agreements. this in addition to the policy offsets the employer shared contributions by employees required to contribute a portion of their salary to the retirement program. the memorandum of agreement negotiated that employees contribution should be on pretax basis effective date the new calpers contract. in 2015, the successor agency commission previously approved salary increases to the memorandum of agreement with both local 21 and local 1021 along with the employees cost sharing negotiated. all contributions be taken on a pretax basis, as of today the agency treated all contributions on pretax basis. the implementation dates on the contribution are as follow. one percent taken effective the first day of a full pay period february 2015, 1.25 was effect in october of 2015 and 1.25 was on the first full pay period of july in 2016. the current contract that we have with calpers only incorporates the 1% and 1.25. the 1.25 that was taken in july 2016 is not currently

. >> then we get back to the issue and i've had discussion with those in the calpers, when you divest you lose your seat at the table to engage and change. i want to stick to the premise of divest because we can find something to invest in that could be better. and one tough thing for us as a board is hitting our bogie and now inflation protection that some of these companies provided us. that wntd to -- that went to alan's comment of can we hit what we want out the and can we be judicious in finding other areas because i don't think we'll get that in the private sector. >> the point of restricting the universe of investment in uncertain future returns, you don't know where the returns are going to come from, you can impair your future returns. our board feels strongly about this initiative. they went after exxon and got the sovereign funds and everybody got to the point of saying we have to do something. it's like galvanizing on dick's sporting goods and lots of funds would say when i went to the berlin for the e.s.g. initiative, they said why did you leave your seat at the table. no

that region, the buildup of sovereign wealth funds -- they don't have an actuarial hurdle like a calpersnew york common, who says i have to hit a 6% return. the diversification of their acid-base is much more expansive. being smart, staying out of the political rhetoric, understanding the patience of that system in the middle east -- they always talk about the , never mind, maybe tomorrow. i think that is the attitude that investors like us need to retain. david: tom barrick will be staying with us. it is time for some of the top business stories we are watching this morning. emma chandra has bloomberg business flash. emma: qualcomm is feeling the legal fallout from its dispute with apple. they came out with a weak sales forecast for the current quarter. apple decided earlier not to use their chips in the latest iphone . the two companies are in a battle over licensing. the turnaround at commerzbank is being slow down by costs and competition. they blamed falling revenue from competition and low interest rates. meanwhile, they are spending on marketing to acquire new customers. tesla has