Released on = September 4, 2006, 9:22 pm

Press Release Author = Friends of McRitchie for CalPERS

Industry = Government

Press Release Summary = McRitchie challenges illegally adopted CalPERS rules. The
Office of Administrative Law agrees to make a determination.

Press Release Body = CalPERS members who sign nomination petitions for Board
candidates must disclose their Social Security Number, which then circulates to
other members exposing themselves to identity theft. Additionally, the Board
insists they can change CalPERS election rules at will, without disclosing legally
required authority, providing public notice, or responding to comments.

James McRitchie, a candidate for the state member seat in the current election,
petitioned CalPERS to stop these practices. The Board, including incumbent George
Diehr, rejected that petition. Now, the Office of Administrative Law (OAL) has
agreed to make a determination. (see http://www.oal.ca.gov/notice/35z-2006.pdf, page
1281)

For years the CalPERS Board argued their rulemaking was exempt from the
Administrative Procedure Act (APA). In 1999 McRitchie obtained a decision that
CalPERS is not exempt from the law and that actions taken by the Board to bypass the
APA were illegal "underground regulations" (1999 OAL Determination No. 18,
http://perswatch.net/iss/OALDetermination.pdf ). Unfortunately, the Board continues
utilizing "underground regulations."

In 2003 CalPERS placed an ad in the Wall Street Journal, which contained the
following: "When boards control their own membership, directors can be unaccountable
and inattentive - opening the door to abusive executive compensation, fraud and
other misconduct. . .Investors deserve a true voice in director elections."
McRitchie believes the same admonition applies to CalPERS itself. CalPERS members
should have a true voice in shaping the regulations that govern how CalPERS Board
members are elected.

State members of CalPERS have a clear choice in the current election. They can vote
for the incumbent and invite further attacks on CalPERS because of continued
practices of questionable legality, or they can vote for James McRitchie for the
highest ethical standards, lower healthcare costs, a healthcare trust fund, and a
sound investment strategy. For more information, go on the Internet to
PERSWatch.net. Vote James G. McRitchie so that I can represent you full-time in
Sacramento on the CalPERS Board. Questions? Call 916-869-2402. Loose your ballot?
Call 916-795-3952 for a replacement.


Web Site = http://www.perswatch.net

Contact Details = 9295 Yorkship Ct.
Elk Grove, CA 95758

jm@perswatch.net
916-869-2402