Should Pension Funds invest in Private Equity?

Quick excerpt from an article I found:
"US job growth is a meager 74000 in December" We all know the fed will continue to taper and keep interest rates low until unemployment reaches below 6.5% or so they say. I believe if the U.S. government and pension funds as a whole fixed a few loopholes, we could see significant job growth. My first proposition is to force all pension fund managers inform their blue collar investors if they are supporting funds that actually stagnate job growth (dividend recapitalizations).

First, starting at the root, blue collar workers, such as California Teachers, choose to dedicate part of their salaries for retirement. They put their savings in CalSTRS, which is now $155bn in AUM. The teachers obviously want their investments to grow at a stable rate, say 10%. I do believe these teachers expect the investments to grow not at the expense of the economy and other blue collar workers. For example, Dan Loeb was in a predicament with pension funds, as he was against defined benefit plans. Thus, I believe these pension fund managers need to inform their investors that some of their funds are invested in private equity funds that depend on dividend recapitalizations for returns."

http://seekingalpha.com/instablog/6206251-thunder-capital/2578401-pension-funds-investments-in-private-equity-good-for-the-economy