Are CalPERS' hands clean?

It's not yet clear whether the California Public Employees' Retirement System, better known as CalPERS, has engaged in the same kind of pay-to-play activities that have rocked New York state's pension systems, resulted in charges of corruption and cronyism, sparked a nationwide probe by the Securities and Exchange Commission and undermined confidence in the integrity of retirement funds and the people who manage them.

But there have been enough troubling signs in recent months to spur an internal CalPERS review and to prompt changes at some local pension agencies, including the two serving retirees in the city of Los Angeles. And last month, Gov. Arnold Schwarzenegger signed legislation requiring expanded disclosure and restricting the ability of public pension employees to lobby or participate in self-serving deals.