CalPERS CEO Announces Plans to Leave This Fall.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 15, 2002

James E. Burton announced today he will leave his post as CalPERS Chief Executive Officer this Fall to pursue a career outside of public service. This move culminates a 27-year career with the State of California, the last 7-1/2 years of which were as CalPERS' CEO.

"I have been truly blessed to have been part of CalPERS, and am proud of our accomplishments," he said. "It's time for me to move on to a new professional challenge. I am announcing my planned departure at this early date so that I may assist the Board with CEO recruitment and transition. One of my goals has been to help build an organization that is not dependent on any single person. I am confident that we have built a foundation of solid business processes and team leadership that will continue to provide outstanding service to members and employers."

Since becoming CEO in the fall of 1994, the pension fund has grown from $78 billion to its current value of just under $150 billion.

Among the accomplishments made at CalPERS during Burton's tenure are:

-- Commitment to strategic planning and continuous business improvement;

-- Emphasis on quality service to CalPERS' members, retirees and employers;

-- Development of strong leadership within CalPERS' executive and management
teams;

-- Inclusion of all stakeholders' input in major policy decisions;

-- Dedication to the motivation, involvement, and personal growth of all
CalPERS employees; and

-- Expansion of CalPERS corporate governance program, to include governance
principles for all major markets throughout the world.

"Jim's contributions to CalPERS as an organization, and to our Board, have been exceptional. He has been an outstanding CEO, a motivating leader, and a great consensus builder. He has given 100 percent of his time, energy and focus to creating the excellent organization we have today. His departure leaves a large void, which will be challenging to fill," said William D. Crist, President of the Board of Administration. "On behalf of the full Board, we regret his decision to move on, but express our heartfelt appreciation for all that he has done and extend our best wishes for his future success."

Burton joined the CalPERS staff in 1992, when he was named Assistant Executive Officer for Investment Operations. Prior to joining CalPERS, he was Deputy State Controller, advising on public pension, government borrowing and state finance issues. His career in California government also included serving as Executive Director of the Commission on State Finance, Deputy Chief of Staff to Governor Jerry Brown, Executive Secretary of the Pooled Money Investment Board, and Assistant Executive Officer of the State Board of Control.

He also serves on other prominent boards, as First Vice President of the National Association of State Retirement Administrators, and member of the Board of Governors of the National Association of Securities Dealers, Inc. He has also served as co-chair of the Council of Institutional Investors, and member of the Board of Directors of the National Association of Security Dealers Regulations, Inc. Burton was the 1999 recipient of the Outstanding Public Administrator Award from the American Society of Public Administration, and was named by the Sacramento Business Magazine as one of 1998's top 25 Business Managers in the Sacramento Area.

"The CalPERS Board will announce its recruitment process for a new CEO as soon as possible," Dr. Crist stated. "A subcommittee of the Board will be appointed to begin work on the process immediately."

CalPERS is the nation's largest public pension fund. The System provides retirement and health benefits to more than 1.3 million State and local public employees and their families. For further information on CalPERS, please visit the System's web site at www.calpers.ca.gov.