CA: State pension fund's investment losses weigh on taxpayers

SJ Mercury News ^ | 2/16/03 | Matt Marshall

[NormsRevenge]

A multibillion-dollar bill for the state's public employee retirement plan is coming due now that the plan's investment income has dried up.

And taxpayers will be asked to pay it.

The bill is expected to be $2 billion next year to cover commitments to the 1.3 million members of the California Public Employees' Retirement System. That's up 195 percent from last year's $677 million, and 43 percent over this year's $1.4 billion.

[NormsRevenge]

CalPERS and CalSTRS Ping

[cinFLA]

To make matters worse, Davis may hand stewardship of CALPERs off to good ol' Willie Brown. Bye Bye $$$$

[cinFLA]

It's the unknown part that is more worrying. Many of the venture firms CalPERS invested in during 1999 and 2000 may not make any money at all over their 10-year partnership contracts, and so the negative results could continue for several years.

I bet those responsible for these "partnerships" make their share of the $$$.

[NormsRevenge]

Related thread Political figures on CalPERS board benefit from ties with `middleman'

[The Westerner]

One very good thing Alan Greenspan used his influence to stop was the idea of investing Social Security funds in the stock market. What kind of idiots would invest retirement funds in venture capital? If Willie Brown takes over, the Calif. taxpayer will be liable for the damage for many years to come.

[NormsRevenge]

Ping. pretty sure you saw this but just in case.

[Grampa Dave]

Liz and I are over this stinking mess on another thread.

[Liz]

Some critics add that CalPERS' massive investments in private equity have hurt the industry, leaving too much money sloshing around into too few ideas -- which has resulted in losses for all investors: "Dumb money," says Wade Woodson, a venture capitalist with Sigma Partners in Menlo Park.

More accurately describes the "Stepford Dumbocrats" campaign contributions which got 'em into this fix.

[Uncle Hal]

Now there is talk of putting Willie Brown on the board of CalPers. He is one of the great political hacks of all time. Talk about the fox guarding the hen house. This is it.

[Ernest_at_the_Beach]

Willie is already on the board, he is trying to get to be the head cheese!

[Ernest_at_the_Beach]

Been out all day doing Medical again.

I'll throw it on the calgov2002 list!

calgov2002:

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