Public retirement systems: development projects: labor standards

The law directs attention to whether pension-funded development projects use protections such as prevailing wages, apprenticeship standards, and union-organizing safeguards. It does not require either retirement system to change its investments or project standards.

What the law does ​

• Requests the University of California, Berkeley, Labor Center to independently study labor protections in California development projects funded through CalPERS and CalSTRS real-asset portfolios.
• Requests the study assess effects on workers, the state economy, development costs, project timelines, and other outcomes.
• Requests CalPERS and CalSTRS to provide relevant internal and contractor-held data within 60 days of a written request from the Labor Center.
• Requests the Labor Center to report its findings to the Legislature and Department of Finance by January 1, 2028.
• Defines the protections examined to include prevailing wage and apprenticeship requirements, skilled-and-trained construction workforces, labor-peace commitments, and community-benefits agreements.

Who it affects ​

• CalPERS and CalSTRS, which are asked to supply data about their real-estate and infrastructure investments.
• Developers, contractors, subcontractors, workers, and nearby communities connected to pension-funded development projects.
• The University of California, Berkeley, Labor Center, which is asked to conduct and report the study.