Calpers and risk: Together forever? (CA Taxpayers on hook for State Employee Pension Fund Loses)

Fortune ^ | 6/30/2010 | Kit R. Roane

[mojito]

Before clocking a $100 billion loss in early 2009, the California Public Employees' Retirement System, known as Calpers, had the swagger of a hedge fund and the certainty of a saint. Other pension funds followed its lead, loading up on leverage, investing in unrated CDOs, shoving money into high-priced private equity deals and barreling into commodities and real estate.

The question now is whether a loss of nearly 40% of its market value -- the worst loss in the system's 77-year history -- has brought Calpers sufficiently back down to earth to avoid another such debacle, and whether other chastened pension systems have followed suit. In truth, not all of the evidence of a rebirth at Calpers is comforting. And in the case of some other underfunded pension funds, their latest financial bets look downright scary.

[mojito]

Where do I sign up to let taxpayers underwrite my investment losses? What a great deal!

[OCCASparky]

Too big to fail, eh?

[RC2]

Public employees union members need to realize that the public is not going to put up with this economy and allow them to go scott free. The union members don’t want to hurt the way the rest of the country is. That’s understandable but not realistic.

[NormsRevenge]

Ain’t Life Grand in this here Goldarn State?

The golden Goo$e$ here poop diamonds on the beaches and gold dust falls off their feathers as the fly overhead..

and then the dream ends..

and the bill comes due..

[tweakDU]

Watch the mass exodus of taxpayers to other states when the bills come due.

[CPT Clay]

Somebody needs to be frog marched off to Jail.

[ExTxMarine]

This is the problem with ALL public union pensions and with MOST corporate union contracts: employees get paid a certain percentage no matter what is the economic reality!

Bankrupt companies are often required to set aside a large portion of their sell-off monies to pay for pensions which are completely out of line with reality, instead of paying back the lenders and the investors! I think at best it should be equal, not this ridiculous crap!

And from the public union contracts, basically, no matter what happens, the police, fire, etc... MUST get their money even though the city, state, etc... can’t afford to keep the lights on to write their D@MN checks! It is stupid mixed with ignorance combined with a very generous splash of DUNCE!

[equalitybeforethelaw]

Look for the union label...

[dragnet2]

CA Taxpayers on hook for State Employee Pension Fund Loses

Not quite....They have no more money, and 30 percent of those not only have no money, but are losing everything...

They'll need to look elsewhere for their lottery style, government retirement pensions.....lol

GOVERNMENT UNIONS

[Joan Kerrey]

The union members don’t want to hurt the way the rest of the country is. That’s understandable but not realistic.

---

For California unions it is perfectly realistic to expect gravy to continue. They own the state and control the government. Only a complete failure of California’s economy might prompt changes. Until then it’ll be business as usual.