CALPERS Gone Wild:Promise Now, Pay Later

Jim Walsh reports:

During the 13 months ending in early December 2008, the investment portfolio of the California Public Employees' Retirement System (CALPERS) lost almost a third of its value — an $81.4 billion drop from just over $260 billion to just under $180 billion. CALPERS manages retirement money for a range of government employees, including firefighters, police officers, social workers, and some teachers. Fund managers said that capital reserves designed to protect against market downturns were helping offset the losses, but they reserved the right (accorded specially to CALPERS by California law) to require state and local governments to contribute additional cash to support the defined pensions promised to CALPERS beneficiaries.


This statist version of a capital call is unique in the American labor market. Only government entities can do it. But, as CALPERS executives reviewed their investment losses and mulled their options, local government officials insisted they didn't have any additional cash to contribute. CALPERS' response was that it would sue local governments that didn't pay up if the investment portfolio was still in the red by June 30, 2009. In terms of draining resources from the commonweal, illegal aliens are amateurs when compared to CALPERS pensioners.

You'll want to read the whole article.Check out CALPERS real estate investments in overpriced California!