[randita]

Amid the euphoria of a soaring Dow that built huge surpluses for CalPERS, labor unions successfully lobbied the Legislature, with the support of the CalPERS governing board, to enrich members' retirement benefits. Some of the gains were dramatic.

Under a law enacted last year, for example, a local government worker with 30 years' experience who retired at age 60 would receive a pension benefit equal to 90 percent of his highest salary. Previously, that same worker would have received only 60 percent of his highest salary.

No further comment needed.

[randita]

ping

[NormsRevenge]

"It's been a good run, but we've known all along there would be years when investment returns aren't there to be able to pay the lion's share of employee benefits," said Pat Macht, spokeswoman for CalPERS.

A Good Run? Not for the taxpayers .. who now are gonna be asked for more.. somehow
DUMP DAVI$ & the Den of Socialists

GO SIMON

[BurbankKarl]

http://www.strs.ca.gov/AboutSTRS/Invport.htm

Funny that comment from the State Teacher's Pension...they are down $6 billion...or 6 percent. But I bet they don't let their member districts slide on good years...

[breakem]

and some law enforcement agencies and corrections in CA now give 90% at age 55 based upon 3.0% per year of service. 2.5% at age 50. All of these formulas were tweaked up during the last 5 years.

[1Old Pro]

Amid the euphoria of a soaring Dow that built huge surpluses for CalPERS, labor unions successfully lobbied the Legislature, with the support of the CalPERS governing board, to enrich members' retirement benefits. Some of the gains were dramatic.

So much for saving for a rainy day, just give it all to the unions NOW, and tax people more later.

[John Jorsett]

Looks like we need a state initiative that says benefit increases for public employees have to be submitted to the voters. Those types of measures seem to be the only chance for an effective check on government bloat these days.

[dennisw]

I like this. A down stock market bashing those who feed at the public trough who were kings for a moment. They have to come down just like the peasants they lord over.

[Kay Soze]

Today's LA Times

IN VERY SMALL PART to comply with rules-

NEWS ANALYSIS

Nest Eggs Cushioned From Market's Drop

Retirement: Diversified investments have kept pensions from falling as far as key stock indexes.

By JAMES FLANIGAN Times Staff Writer Story in LA Times

"In addition, pension funds typically invest with a long-term horizon. At the California Public Employees' Retirement System, the nation's largest public pension plan, investments are made on a 10-year perspective in accordance with strict ratios for allocating assets among bonds, stocks and real estate.

CalPERS is shifting more of its funds into stocks as part of a normal process to take profits and move money out of investments that have performed well (bonds) into those that have lagged (stocks). During the height of the stock boom, it shifted money from stocks into bonds.

These days "we are buying equities," said Mark Anson, CalPERS' chief investment officer. "We are selling our gains in fixed-income securities and buying $200 million to $300 million in equities with every 50 point drop in the S&P 500," Anson said. That index has fallen almost 400 points in the last year.

CalPERS' mammoth investment portfolio has lost only about 5% in the last year, going from $156 billion to about $149 billion at present, because gains in bonds and real estate reduced the overall losses.

[razorback-bert]

So, the PRC state employees will have a 16% pay cut.

[Dog Gone]

Under a law enacted last year, for example, a local government worker with 30 years' experience who retired at age 60 would receive a pension benefit equal to 90 percent of his highest salary.

How on earth was that sustainable? At age 60, you have a life expectancy of over 20 more years, and it's been increasing every year.

As the Boomers retire, that will increase the burden. Unbelievable.

[monkeyshine]

It's no different than every other government in the state. California overspent using projections that could never have withstood time. So did most cities and counties. To make matters worse, they gave everyone a retirement raise!

Now the state wants more taxes, and so does my county.. they want to raise property taxes to pay for hospitals that help illegals who own no property and pay no taxes. Great freakin' system we got here in California.

[tubebender]

"The value of CalPERS assets peaked at $178 billion in early 2000. But as the stock market faltered, CalPERS' assets fell below $145 billion. Annual returns on investment, which averaged well into double digits annually during the 1990s, turned negative the last two years. "

They lost 33 BILLION and they are not in jail yet ? If the private sector can be held accountable why not the buffoons managing this fund ?