CEO of CalPERS will resign, sources say

The chief executive of the California Public Employees’ Retirement System is planning to leave by the end of the year amid tensions with the board, according to two people familiar with the matter.

The board is in discussions with Fred Buenrostro, 58, about his departure from the largest U.S. public pension fund, known as CalPERS, said the people, who declined to be identified. He has been in the job since 2002 and was a member of the board of directors for 15 years. CalPERS has $244 billion in assets.

The executive would be the fund’s third top-ranking officer to exit this year. Russell Read, CalPERS’ chief investment officer, will leave June 30.

The departures come amid internal debate over CalPERS’ investments in infrastructure projects, the people said. At least four of the 13 board members favor a policy requiring union employees to work on the projects. New allocations can’t be made until the policy is adopted, one person said.

CalPERS spokeswoman Pat Macht and board President Rob Feckner declined to comment.

CalPERS has allocated about 2.5% of assets, or $6 billion, for infrastructure, such as roads, bridges and power plants, the person said.

Read quit after overseeing the fund’s investment strategy for two years. Chief Operating Investment Officer Anne Stausboll will replace him until a permanent successor is found. Christianna Wood, senior investment officer, stepped down in February to become CEO of a hedge fund.