CalPERS considers itself a leader in the shareholder movement to force public companies to improve their corporate governance practices. It has recently targeted Goldman Sachs and JPMorgan Chase. But its moral authority has been undercut by recent investigations into pay-to-play lapses that have implicated former pension executives.

Now, another regulatory investigation may be underway into whether the pension provided adequate disclosures about portfolio risks. The pension has been hit hard by the financial crisis, losing about 25 percent of its portfolio value, according to the New York Times.

This may be part of a broader attempt by the SEC to upgrade disclosure standards at public pensions. In some ways, these pensions have been seen as victims, misled by sellers of exotic securities. But there are signs the SEC thinks some pensions have been remiss.

New Jersey was the target of the SEC's first-ever enforcement action against a state; it was accused of misleading bond buyers about the state of its pension fund.

All of this comes at a bad time, as many question whether CalPERS and other pensions can meet their future obligations to retired workers. The situation is looking bleak.

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