Skip navigation
Prison Legal News
× You have 2 more free articles available this month. Subscribe today.

California State Retirement Systems Split on Decision to Divest 
from Private Prisons

Loaded on April 2, 2019 by Scott Grammer published in Prison Legal News April, 2019, page 59
Filed under: Private Prisons, Corrections Corporation of America/CoreCivic, GEO Group/Wackenhut. Location: California.

by Scott Grammer

The Teachers’ Retirement Board of the California State Retirement System (CalSTRS) has decided to get out of private prison investments by dumping CoreCivic and GEO Group stock from its portfolio. About $12 million worth of stock is involved – which represents a fraction of the companies’ combined $4.57 billion market cap.

In a November 7, 2018 press release, Investment Committee Chairman Harry Keiley said, “The board conducted a review of the staff research. We agreed that the engagement efforts were thorough and listened to our expert investment consultants. Based on all the information and advice we were provided, the board decided to divest according to the policy criteria.” That decision occurred after officials visited detention facilities and met with senior management of both private prison firms. 

The Chief Investment Officer for CalSTRS, Christopher Ailman, said there was an increased risk to the retirement system’s portfolio due to human rights violations at privately-operated detention centers used to house immigrants and their children. 

In contrast, the California Public Employees’ Retirement System (Cal­PERS) recently voted against divestment from private prisons. The agenda for a March 18, 2019 meeting of CalPERS’ investment committee stated, “as a California state agency, CalPERS is sensitive to public policy issues, but recognizes that our primary duty and obligation is to our members,” adding, “Divestment almost invariably harms investment performance by compromising investment strategies and increasing transaction costs.” 

It was estimated that selling off Cal­PERS’ 10 million shares in CoreCivic and GEO Group would have cost the $351 billion pension system around $175,000 in fees and market losses. 

---

Sources: barrons.com, pionline.com, bloomberglaw.com, ai-cio.com

As a digital subscriber to Prison Legal News, you can access full text and downloads for this and other premium content.

Subscribe today

Already a subscriber? Login

More from this issue:

  1. News in Brief
  2. Lawsuit Challenging Phone Kickbacks at Massachusetts Jail Survives Motion to Dismiss
  3. Kentucky Prison Guards Settle Sexual Harassment Suit for $1.5 Million, by David M. Reutter
  4. Wisconsin State Prison Sergeant Rats Out Prisoner Informants, by Edward Lyon
  5. Teachers’ Unions Divest Stock Holdings in Private Prisons, by David Reutter
  6. Delaware: Inadequate Medical Care Results in Prisoner’s Death, by Kevin Bliss
  7. California State Retirement Systems Split on Decision to Divest 
from Private Prisons, by Scott Grammer
  8. Former Rikers Island Prisoner Awarded $500,000 Plus Attorney Fees, by Dale Chappell
  9. Colorado: $190,000 Settlement for Prisoners Ordered Released but Kept in Jail for Inability to Pay $55 Fee, by Matthew Clarke
  10. Scabies Outbreak at Michigan Women’s Prison Under Corizon Health, by Edward Lyon
  11. The Lackawanna County Seven: And Then There Were Five, by Mumia Abu-Jamal
  12. Settlement Reached over Visitation, Communication with Prisoners’ Children at Indiana Jail, by Scott Grammer
  13. Corizon Health Strikes Out in Arizona, by Edward Lyon
  14. Warden Turns Whistleblower, Claims Misconduct, Retaliation by Colorado’s DOC Director, by Dale Chappell
  15. New York City Settles Kalief Browder Lawsuit for $3.3 Million, by Matthew Clarke
  16. Strip and Body Cavity Searches: Looking for Contraband in all the Wrong Places, by Matthew Clarke
  17. Connecticut Sued to End Prison Gerrymandering, by Scott Grammer
  18. Securus Files Suit Alleging FDOC Improperly Entered into Prison Phone Contract, by Chad Marks
  19. Seventh Circuit Reverses Dismissal in Prison Gang Assault Case, by Edward Lyon
  20. New York City Pre-trial Detainees Exposed to Freezing Temperatures at Federal Jail, by Edward Lyon
  21. $4.75 Million Settlement for Pennsylvania Teenager’s Withdrawal Death in Jail, by David M. Reutter
  22. Middlesex County, New Jersey Settles Solitary Confinement Suit, by Dale Chappell
  23. Conflict of Interest in Texas Rangers’ Investigation of Deaths at LaSalle-Operated Jails?, by Matthew Clarke
  24. Michigan Prisoner Obtains $2,000 Settlement in Group Strip Search Suit, by Scott Grammer
  25. Georgia Pays More Than $3 Million to Settle Prison Medical Negligence Suits, by Kevin W. Bliss
  26. Tennessee County Settles Jail Prisoner’s Excessive Use of Force Claim for $160,000, by Douglas Ankney
  27. New York: Federal Court Certifies Class-Action Suit Against Jail for Providing Insufficient Diet, by Dale Chappell
  28. Women Prisoners Disciplined More than Men, but Staff Training is Changing That, by Dale Chappell
  29. New York Muslim Prisoner Wins Injunction to Pray on Recreation Yard
  30. Mitigating Factors Counter Government’s Interest in Forced Psychotropic Medication
  31. Minnesota Lawmakers Look at Prison Reforms, by Chad Marks
  32. New Jersey DOC Settles Sexual Abuse Suit, but More Cases are Pending, by Derek Gilna
  33. For Years, Errors in Iowa’s Felon List Have Disenfranchised Eligible Voters, by Matthew Clarke
  34. San Bernardino County, California Sheriff’s Office Settles Civil Rights Suit, by Derek Gilna
  35. New Mexico Medical Technician Wins $150,000 Jury Award for Abuse by Jailers, by Edward Lyon
  36. Nevada: Muslim Prisoner Awarded $39,260 in Damages Plus Attorney’s Fees
  37. Arkansas Governor Addresses Prisoners at College Graduation Ceremony, by Scott Grammer
  38. 2018 Awards for Activism, Advocacy Against the Private Prison Industry
  39. Iowa: Prisoners Entitled to Full Hearing on Termination of Parental Rights, by David Reutter
  40. Oregon Prison Industry Program Nets Record $28.5 Million as Prisoners Earn $1.25/Hour, by Mark Wilson
  41. $1.1 Million Fee Award in California Prison Segregation Lawsuit
  42. Ex-Prisoner Awarded $1.06 Million for Sexual Assault by Former Nebraska Jailer, by Dale Chappell
  43. California Jail Settles Class-Action Lawsuit Over Conditions of Confinement, by Derek Gilna
  44. Pennsylvania DOC, Mental Health Contractor Settle Wrongful Death Suit for $27,500, by Derek Gilna
  45. Texas Prisons, We’ve Got Some Questions About Your Commissary Vendors, by Stephen Raher
  46. Alabama DOC Stonewalling Federal Investigation; Eight Prisoners go on Hunger Strike, by Douglas Ankney
  47. Georgia: Court Certifies Class Action for Prisoners Held Beyond Their Release Date, by Derek Gilna
  48. Wisconsin Prisoner Not Due Credit for Time Spent Free after Erroneous Release, by Scott Grammer
  49. Alabama DOC Refuses Muslim Spiritual Adviser in Execution Chamber, by Kevin W. Bliss
  50. Ohio: Mandamus Action Moot Where Relief Has Been Granted
  51. Class Certification in Missouri Prisoners’ Hepatitis C Suit Upheld
  52. Mugshots.com Operators Arrested, Face Extradition to California, by Chad Marks
  53. California Prison Psychiatrists Blow Whistle on Poor Mental Healthcare, Falsified Records, by Steve Horn
  54. For Journalists Covering Prisons, the First Amendment is Little Help, by Jonathan Peters
  55. Study Says Mass Incarceration Contributes to Poverty and Hunger, by Derek Gilna
  56. “It Smelled Like Death”: Reports of Mold Contamination in Prisons and Jails, by Panagioti Tsolkas
  57. Congressional Report Finds Misconduct by BOP Administrators Often Ignored, by Matthew Clarke
  58. From the Editor, by Paul Wright
  59. Hawaii Supreme Court: Pretrial Solitary Wrong, but Warden Protected by Qualified Immunity, by Derek Gilna
  60. Ohio County Jail Settles PLN Censorship Suit for $45,000, by Steve Horn
  61. Incorrigible: The First Step Act and the Carceral State, by Marie Gottschalk

More from Scott Grammer:

More from these topics: