UNDERFUNDED PENSION SYSTEMS: TOUGH CHOICES LAY AHEAD FOR PENSION MANAGERS

Managers of some of Californian’s biggest public employee pension funds will face difficult decisions this year to shore up chronically underfunded pension systems.  By anyone’s account both CalPERS and CalSTRS are significantly underfunded.  That means that the pension systems do not have sufficient money, even assuming a set investment return ...Read More

IT’S OFFICIAL: CITY OF STOCKTON IS BANKRUPT

US Bankruptcy Judge Christopher Klein issued a ruling on April 1, 2013 that the City of Stockton was eligible for Chapter 9 Bankruptcy proceedings.  Judge Klein’s ruling comes after a 3 day trial where certain creditors of the City, particularly Wall Street companies that either bought Stockton’s bonds or insured ...Read More

How are California Cities and Counties Going to Pay CalPERS

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IT IS TIME FOR CALPERS TO GET REAL(ISTISC!)

CalPERS is considering once again to reducing its investment forecast.  It attempted to do so last year when CalPERS senior actuary, Allen Milligan recommended to CalPERS that they lower their annual investment return forecast by a half point from 7.75% to 7.25%.  The annual return forecast, also known as investment ...Read More

HEALTH OF PUBLIC PENSION SYSTEMS TIED TO CALIFORNIA’S MOUNTAIN OF DEBT

How does it feel knowing that your pension is tied to the success or failure of the high-speed rail project?  Both the short and long term health and viability of California’s State and Local Pension Funds are tied directly to how California deals with its other massive debt obligations. It ...Read More

GOVERNOR BROWN’S 12-POINT PENSION REFORM PLAN GAINING TRACTION

It appears that Governor Jerry Brown’s recently unveiled 12-Point Public Employee Pension Reform Plan is gaining traction over a wide swath of California voters and not just fiscal conservatives. Periodically the Sacramento Bee publishes an interesting debate between two writers titled “Head to Head.” Head to Head pits conservative Ben ...Read More

TEACHERS’ PENSION FUND BILLIONS SHORT

The biggest pension fund for California teachers, CalSTRS, is experiencing a massive funding gap and the California Governmental Accounting Standards Board (GASB) is proposing new accounting rules for calculating the fund’s liabilities that will make those numbers even worse. CalSTRS currently has a funding gap of 56 billion dollars–the difference ...Read More

CalPERS CEO Issues Statement on Governor’s Pension Reform Proposal

  CalPERS CEO Issues Statement on Governor’s Pension Reform Proposal SACRAMENTO, CA – Anne Stausboll, Chief Executive Officer of the California Public Employees’ Retirement System (CalPERS), today issued the following statement in response to Governor Edmund G. Brown, Jr.’s 12-point pension plan: “CalPERS is closely involved in the pension policy ...Read More

CalSTRS Response To Governor Brown’s Pension Reform

CalSTRS Response: http://www.calstrs.com/Newsroom/whats_new/pension_reform_response.aspx CalSTRS appreciates that Governor Brown has taken a very important step in addressing the critical and complex issues facing the state’s public pension systems. We look forward to receiving more detail on the proposal and having the opportunity to review it in depth. The most important reform ...Read More