Calpers gets tough

California's giant pension fund signed off on a new ethics policy that seems so logical you have to wonder why it took a scandal to have it enacted. Under the new rules, the 13 board members must refer any communication regarding current or potential investments to the fund's chief investment officer. Board members must also refrain from advocating an investment action with Calpers staff "outside a board or committee meeting." Like, D'oh! From the press release:

"Our staff must make decisions based squarely on the merits of a transaction," said George Diehr, vice president of the Calpers board, in a statement. "We want independent, objective analysis to be the ultimate guide when it comes to Calpers' investments, and these new policies ensure that will happen."

All this follows the embarassing disclosure that a former board member earned more than $50 million by acting as a middleman between the Calpers board and the firms looking to invest and/or manage billions of dollars in pension fund assets.