Keyword: calpers

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  • Bankruptcy Judge Hammers Unions by Allowing Stockton Pension Cut

    10/04/2014 10:22:18 PM PDT · by 2ndDivisionVet · 23 replies
    Breitbart California ^ | October 4, 2014 | Chriss W. Street
    In what will be a devastating blow to California public employee unions, U.S. Bankruptcy Judge Christopher Klein ruled in the Chapter 9 municipal bankruptcy of the City of Stockton that pensions managed by the California Public Employee Retirement System, known as CalPERS, can be cut in bankruptcy “like any other garden variety” unsecured debt. He rejected the unions’ argument that the world’s largest pension fund is an “arm of the state” and that public employee pensions are protected by federal and state laws. Stockton city employees and city council members, who are all CalPERS pension beneficiaries, received retirement benefit enhancements...
  • Federal judge questions sacredness of government employee pensions

    10/02/2014 9:27:04 AM PDT · by SeekAndFind · 14 replies
    American Thinker ^ | 10/02/2014 | Thomas Lifson
    When government employees buy the California legislature with huge campaign contributions, one of the benefits they expect in return is absolute protection of the lush pensions they are promised, even when their employer goes into bankruptcy. Thus, California law insists that Calpers, the state-backed agency used to provide many government employees with their pensions, is granted very special powers, including the right to seize assets and liquidate them to provide for full payment of pensions, even when other creditors are paid a penny on the dollar.But yesterday, a federal bankruptcy judge in California issued a preliminary ruling indicating that once...
  • CalPERS gets decision: Judge rules Stockton can sever its city pensions (CA)

    10/01/2014 4:14:40 PM PDT · by aimhigh · 27 replies
    Sacramento Bee ^ | 10/01/2014 | Dale Kasler
    In a potentially groundbreaking decision, a federal bankruptcy judge today struck down the sanctity of government pensions in California, saying the city of Stockton has the right to sever its contract with CalPERS. The verbal ruling from U.S. Bankruptcy Judge Christopher Klein, two years after Stockton filed for bankruptcy, was the decision CalPERS longed to avoid.
  • Government Employee Unions Tee Up California's Bankruptcy

    05/17/2014 10:15:08 AM PDT · by SeekAndFind · 6 replies
    Forbes ^ | 05/17/2014 | Bill Frezza
    Half a Billion Dollars. That’s how much the California Teachers Association and the powerful Service Employees International Union have spent on California politics since 2000. The unions’ return on that “investment”? A legislature totally beholden to them for political support and campaign contributions. Here’s another mind-boggling number: Half a Trillion Dollars. That’s an estimate of the unfunded public pension liabilities racked up by California’s state and municipal governments due to overly generous pay and defined benefit pension plans lavished on unionized government employees. If you thought the bankruptcies of Stockton, San Bernardino, and Vallejo were entertaining, break out the popcorn...
  • CalPERS Ex-CEO Buenrostro Guilty Plea Explains Why Bankers Make So Much Money

    07/13/2014 9:29:08 AM PDT · by Lorianne · 5 replies
    Forbes ^ | 13 July 2014 | Tim Worstall
    The ex-CEO of CalPERS, Fred Buenrostro, has just pleaded guilty to accepting doucers, cash bribes and fees for placing investment business with a specific firm. The economic point that this helps us elucidate is why bankers and fund managers make such vast incomes normally. It’s a concept called “efficiency wages”. Essentially, when stripped right down, if people are handling or responsible for a large amount of money then pay them very well. So that it’s not actually worth their trying to do anything naughty, the risk of losing that high income is greater than what they can gain by being...
  • Unions: 'Will that Be Cash, Credit or Corruption?'

    03/17/2014 4:41:21 AM PDT · by Kaslin · 7 replies
    Townhall.com ^ | March 17, 2014 | John Ransom
    While it’s a truism that for every finger you point at someone else you’ve got three pointed right back at you, for liberals it’s part of their laws of physics. It would be impossible for the laws of liberals to govern without this binding hypocrisy that keeps them in orbit. That’s why it shouldn’t surprise you that for all the leftist rhetoric about corporations and greed contributing the decline of the country, there’s one corporate outfit that’s really screwing up this country- and it’s a creation and a creature of the left. Like most Big Left organizations it is...
  • Voters in bankrupt San Bernardino sweep old guard from power

    02/06/2014 9:17:29 AM PST · by Beave Meister · 5 replies
    Reuters ^ | 2/5/2014 | TIM REID
    (Reuters) - Residents of bankrupt San Bernardino, California on Tuesday voted to complete a rout of the city's pro-union old guard, electing business-friendly pragmatists who have pledged to try to reduce pension costs and take on vested interests. As San Bernardino enters into a fourth month of mediation with its creditors, the biggest of which is Calpers, California's giant retirement system, voters on Tuesday elected Carey Davis as the crisis-hit city's new mayor. Davis, a businessman and political novice, ran in part on a campaign to reduce the city's pension obligations. In an interview in November, when he became one...
  • San Bernardino, deemed eligible for bankruptcy, may take knife to pensions

    08/29/2013 7:38:13 AM PDT · by redreno · 37 replies
    http://www.lasvegassun.com ^ | Wednesday, Aug. 28, 2013 | By Jennifer Medina, New York Times News Service
    LOS ANGELES — A federal bankruptcy court judge granted the city of San Bernardino eligibility for bankruptcy protection Wednesday, raising the possibility that the city will propose a plan to dig itself out of debt by cutting money promised to the public pension system. The ruling by Judge Meredith Jury came despite opposition from the powerful California Public Employees’ Retirement System, more commonly known as CalPERS. San Bernardino, a working-class city of 240,000 about 60 miles east of Los Angeles, declared Chapter 9 bankruptcy last summer, saying it had effectively run out of money to pay for day-to-day operations, in...
  • CalPERS Is Hotel California

    04/30/2013 7:17:52 AM PDT · by Texas Eagle · 5 replies
    chrissstreetandcompany.com ^ | April 30, 2013 | Chriss W. Street
    When it comes to public employee pension politics, the Eagles got it right with Hotel California: “You can check-out any time you like, but you can never leave!” The San Jose City Council, facing huge budget deficits tried to honor the will of the people by terminating life-time pension benefits for Council members. But they just learned ending wildly expensive retirement benefits may be wildly more expensive than staying in the plan. The California Public Employees’ Retirement System (CalPERS), which manages most public employee retirement benefits in California raised San Jose’s cost of checking-out of the pension plan by 584%.
  • As we predicted, pensions eating up Prop. 30 education funds

    04/29/2013 6:12:28 PM PDT · by massmike · 5 replies
    calwatchdog.com/ ^ | 04/29/2013 | John Seiler
    As Bill Clinton might put it, it’s in the math. In the lead up to the November 6 election last fall, CalWatchDog.com ran several articles on Proposition 30 and pensions. We warned that the $7 billion tax increase would go not to schools, as advertised by Gov. Jerry Brown and others in TV ads, but to teacher pensions and other spending. I’ll quote some below. The news now is that this is exactly what is happening. David Crane, a Democrat who was a budget adviser to Republican Gov. Arnold Schwarzenegger, has the facts in a Bloomberg article: “Most Californians would...
  • Bankrupt California city to resume paying pension fund, but not bondholders

    04/12/2013 9:20:33 AM PDT · by Uncle Chip · 30 replies
    Yahoo News ^ | April 12, 2013 | Tim Reid | Reuters
    LOS ANGELES (Reuters) - Bankrupt San Bernardino will resume paying into the state pension fund on July 1, but the California city will continue to renege on other debts including payments to bondholders, according to a new budget released late Thursday. Nearly a year after it halted contributions to America's biggest pension fund, San Bernardino will resume payments to Calpers at the start of the new fiscal year - but continue to not pay other creditors, according to the budget. San Bernardino will not make interest and principal payments on $50 million in pension bonds issued in 2005, according to...
  • State Auditor: CA Net Worth Negative $127.2 Billion

    03/30/2013 4:11:30 PM PDT · by lowbridge · 42 replies
    breitbart ^ | march 30, 2013 | Mike Flynn
    At end of the week, California's State Auditor released its annual financial report for the state. The report, compiled by Auditor Elaine Howle, found the state has a net worth of -$127.2 billion. If the state were a business, it would be a candidate for liquidation. CA's financial situation deteriorated this year, largely because the state spent $1.7 Billion more than it collected in revenue. This over-spending worsened the state's debt picture. "Expenses that exceeded revenues and increased long-term obligations resulted in an 81.4 percent decrease in the total net assets for governmental and business-type activities from the 20-10-11 fiscal...
  • Ex-CalPERS CEO, board member charged with fraud

    03/19/2013 7:32:35 PM PDT · by NormsRevenge · 7 replies
    Mercury News ^ | 3/19/13 | Paul Elias - AP
    SAN FRANCISCO -- Federal officials on Monday charged the former head of the nation's largest pension fund and one of his business associates with falsifying documents and other charges in a long-running influence peddling and bribery investigation. A grand jury in San Francisco charged Federico Buenrostro Jr. and Alfred Villalobos, and they were booked and released on bond Monday after briefly appearing in court. Buenrostro, 64, served as CEO of the California Public Employees' Retirement System from late 2002 until June 2008. Villalobos, 69, served on the CalPERS board and is a former vice mayor of Los Angeles. The indictment...
  • The Pension Fund That Ate California (CalPERS’s corruption, overwhelms taxpayers with debt)

    02/07/2013 7:25:41 PM PST · by SeekAndFind · 17 replies
    City Journal ^ | 02/07/2013 | Steve Malanga
    After spending years dogged by unpaid debts, California labor leader Charles Valdes filed for bankruptcy in the 1990s—twice. At the same time, he held one of the most influential positions in the American financial system: chair of the investment committee for the California Public Employees’ Retirement System, or CalPERS, the nation’s largest pension fund for government workers. Valdes left the board in 2010 and now faces scrutiny for accepting gifts from another former board member, Alfred Villalobos—who, the state alleges, spent tens of thousands of dollars trying to influence how the fund invested its assets. Questioned by investigators about his...
  • CalPERS slams San Bernardino for 'sham' bankruptcy

    12/18/2012 6:26:35 PM PST · by Lorianne · 10 replies
    Daily Bulletin/Reuters ^ | 16 December 2012 | Tim Reid, Jim Christie
    A high-stakes legal battle has intensified as the largest U.S. pension fund filed court papers denouncing the financially troubled city of San Bernardino for what it called a "sham" bankruptcy and accused the city of "criminal behavior" in withholding payments to the pension plan. The filing on Friday by the California Public Employees' Retirement System, or CalPERS, came 10 days after San Bernardino officials traveled to Sacramento to plead with top CalPERS executives for more time to make payments. At issue is whether the pensions of government workers take precedence over other payments in a municipal bankruptcy - which could...
  • Bankrupt San Bernardino to halt payments to Calpers, bondholders

    11/27/2012 5:56:14 AM PST · by Uncle Chip · 28 replies
    Yahoo News ^ | November 27, 2012 | Tim Reid and Jim Christie | Reuters
    SAN BERNARDINO, California (Reuters) - Bankrupt San Bernardino, California, voted on Monday to present a plan to a bankruptcy judge that seeks to balance its budget through deferring payments to the state's public employee pension fund and to the city's bondholders. ....... San Bernardino has already halted its biweekly $1.2 million payment to the California Public Employees' Retirement System (Calpers) since it filed for bankruptcy protection on August 1. The city calls the halted payments "deferrals," but under the pendency plan it would not resume any payments to Calpers until the 2013-2014 fiscal year. It also wants to negotiate its...
  • CalPERS objects to bankruptcy filing by San Bernardino, which owes pension fund millions

    10/25/2012 9:16:19 AM PDT · by SmithL · 13 replies
    Sacramento Bee ^ | 10/25/12 | Dale Kasler
    After getting stiffed by the city of San Bernardino for millions in payments, CalPERS is objecting to the city's right to file for bankruptcy protection. In a lengthy court filing late Wednesday, the California Public Employees' Retirement System suggested San Bernardino is using bankruptcy protection to avoid paying its debts. The city owes CalPERS about $5.2 million. The city's action "raises a serious question of whether its underlying purpose has been merely to 'buy time' and 'evade creditors,'" CalPERS wrote in a filing in U.S. Bankruptcy Court in Riverside.
  • Calpers threatens San Bernardino over pension debt

    10/19/2012 9:03:24 PM PDT · by Uncle Chip · 6 replies
    Yahoo News ^ | October 19, 2012 | Tim Reid, Reuters
    (Reuters) - In the opening skirmish of a battle over how local governments deal with soaring pension costs, America's largest public employee retirement system made clear on Friday it would not tolerate a city deciding to miss a payment. The California Public Employees' Retirement System (Calpers) told bankrupt San Bernardino it may take legal action to force the city of 210,000 to resume its pension payments. And the $243 billion Calpers even threatened to sever its ties with the city altogether if it continues to be in arrears. San Bernardino, a city 60 miles east of Los Angeles that has...
  • Police chiefs in California getting huge final paychecks

    07/11/2012 9:27:42 AM PDT · by dragnet2 · 23 replies
    http://www.latimes.com/new ^ | 7/11/2012 | Sam Allen
    El Monte Police Chief Thomas Armstrong oversaw a modestly sized department, with 120 officers But when Armstrong stepped down last year, he was paid nearly $430,000 The payday was possible thanks to a clause in Armstrong's contract that allowed him to accrue unlimited sick and vacation hours and sell them back to the city at the end of his career. By the time he retired at age 56, Armstrong cashed out for roughly $200,000. And he's not alone. Similar payouts have been made in city governments across the state. Those employees include Roy Campos, Downey's former police chief, who was...
  • Judge: CalPERS can offer long-term care insurance to gay couples

    05/26/2012 12:04:17 PM PDT · by SmithL · 10 replies
    Sacramento Bee ^ | 5/26/12 | Dale Kasler
    In a major case involving gay rights at CalPERS, the nation's largest public pension fund has been ordered to offer its long-term care insurance program to same-sex partners of California workers. A federal judge in Oakland struck down portions of the federal Defense of Marriage Act that have prevented the California Public Employees' Retirement System from extending the insurance to gay spouses and domestic partners. In a ruling released Thursday, U.S. District Judge Claudia Wilken said the ban served no "legitimate governmental interest" and was apparently "motivated by anti-gay animus."
  • To Gov. Jerry Brown's dismay, pension board phases in state hike

    05/16/2012 4:09:55 PM PDT · by SmithL · 6 replies
    SacBee: Capitol Alert ^ | 5/16/12 | Kevin Yamamura
    Against Gov. Jerry Brown's wishes, the California Public Employees' Retirement System board voted today to phase in a higher cost to the state over two years rather than bill the state immediately in full. In a letter to the board, Brown called that "not a prudent decision." The disagreement was over the pace at which PERS is lowering its assumptions about future investment returns from 7.75 percent to 7.5 percent, called the discount rate. Such changes are intended to compensate for lower market returns. When the rate of return assumption goes down, governments must contribute more. The PERS board agreed...
  • UPDATE 2-SEC charges former Calpers CEO with fraud scheme

    04/23/2012 3:35:32 PM PDT · by ColdOne · 1 replies
    Reuters.com ^ | 4/23/12 | Reuters
    * SEC says ex-CEO, ex-board member fabricated documents * Two charged with scheming to defraud a firm of $20 mln (Reuters) - A former chief executive of Calpers, the biggest U.S. public pension fund, and a former board member were charged by federal regulators on Monday with scheming to defraud Apollo Global Management, a private equity firm, of more than $20 million in placement fees. The U.S. Securities and Exchange Commission said that Federico Buenrostro, a former chief executive of the California Public Employees' Retirement system, and Alfred Villalobos, a friend and former board member who became a placement agent,...
  • Top administrators shamelessly try to cook the pension books

    03/18/2012 8:58:59 AM PDT · by SmithL · 11 replies
    Contra Costa Times ^ | 3/18/12 | Daniel Borenstein - Staff columnist
    Solving California's public pension crisis must begin with honest numbers. So when top government administrators, who are supposed to be the neutral brokers, start advocating for cooking the books for political and budgetary reasons, we should be concerned. That's what happened last week as the California Public Employees' Retirement System took a small step toward realistically forecasting future investment returns. Peter Ng, employee benefits director for Santa Clara County, supported by his boss, County Administrator Jeff Smith, pleaded with CalPERS board members to override their actuary's advice because it would lead to increased short-term pension costs. While the investment forecast...
  • CalPERS OKs reduction in investment forecast, costing state extra $167 million per year

    03/14/2012 3:13:27 PM PDT · by SmithL · 7 replies
    Sacramento Bee ^ | 3/14/12 | Dale Kasler
    CalPERS gave final approval today to a quarter-point reduction in its investment forecast, but will look at softening the fiscal impact on government budgets. The lowered forecast will cost the state an extra $167 million a year, and will also raise costs for the school districts and municipalities that belong to the California Public Employees' Retirement System. But the CalPERS board, sensitive to piling a higher burden on cash-strapped government agencies, told its staff to examine phasing in the dollar impact over two years. CalPERS' governing board voted 9-1 to lower the investment forecast to 7.5 percent, affirming a recommendation...
  • California: Bankruptcy Upon the Union Altar

    02/26/2012 4:50:45 AM PST · by Kaslin · 11 replies
    Townhall.com ^ | February 26, 2012 | Mike Shedlock
    Bondholders of Stockton, California debt are about to be punished as City Manager Takes Steps Toward Bankruptcy. Stockton, California, may take the first steps toward becoming the most populous U.S. city to file for bankruptcy next week because of burdensome employee costs, excessive debt and bookkeeping errors that misrepresented accounts, city officials said today. The Stockton City Council will meet Feb. 28 to consider a type of mediation that allows creditors to participate, the first move toward a Chapter 9 bankruptcy filing under a new state law. The council will also weigh suspending some payments on long-term debt of about...
  • Democrats want to extend guaranteed retirement savings to private sector

    02/23/2012 1:50:36 PM PST · by SmithL · 15 replies
    SacBee: The State Worker ^ | 2/23/12 | Jon Ortiz
    New legislation unveiled this morning aims to build a sort of CalPERS-for-all retirement savings system that the measure's author says could cover an estimated 7 million working Californians in the private sector. Senate Bill 1234 by Los Angeles Democratic Sen. Kevin de León would require businesses with five or more employees to enroll them in a new "Personal Pension" defined benefit program or offer an alternative employer-sponsored plan. De León, Senate President Pro Tem Darrell Steinberg and other political and labor leaders who touted the measure noted that public discourse has focused on public employee pensions. The press event came...
  • CalPERS will look again at adjusting forecast

    02/15/2012 3:42:51 PM PST · by SmithL · 6 replies
    Sacramento Bee ^ | 2/15/12 | Dale Kasler
    CalPERS is going to look again at adjusting its investment forecast, a move that could increase taxpayer contributions while ramping up the political heat on public pension funds in California. Just a year ago, the board of the California Public Employees' Retirement System ignored recommendations from senior staff to cut its forecast a quarter-point, to 7.5 percent. Yet on Tuesday, senior actuary Alan Milligan said CalPERS staff will make another recommendation to the board next month. He didn't say what the recommendation will be. But other big public pension funds have been cutting their forecasts in recent years to reflect...
  • Federal judge may overturn CalPERS care rule

    01/31/2012 9:39:24 AM PST · by SmithL · 4 replies
    Sacramento Bee ^ | 1/31/12 | Dale Kasler
    CalPERS refuses to sell its long-term care insurance to the same-sex partners of state workers, on the grounds that federal law doesn't allow it. Now a judge in Oakland seems ready to overturn that federal ban. Last week, U.S. District Judge Claudia Wilken refused to dismiss a class-action lawsuit against CalPERS and the U.S. government over the California pension fund's long-term care program. In her ruling, she suggested the ban could be unconstitutional. While the California Public Employees' Retirement System extends most benefits to same-sex couples, it has denied long-term care coverage to the same-sex spouses or domestic partners of...
  • Built on lies, CalPERS now wants to sue its way to solvency: How very Democrat!

    01/18/2012 7:56:38 AM PST · by jmaroneps37 · 14 replies
    coachisright.com ^ | JANUARY 18TH, 2012 | Kevin “Coach” Collins
    This story isn’t very complicated. In 1999 California’s public employee unions took control of the Golden State from a weak sycophantic Democrat Governor, the now infamous Grey Davis. The unions instructed their servants in the Legislature to create the California Public Employees Retirement System known as CalPERS. With CalPERS. Davis and his Party purchased perpetual control of California’s government through never ending union support. And why not; CalPERS gives state employees lavish pay, benefits and pensions amounting to 90% of yearly salaries. Not surprisingly Californians knew little or nothing about the dirty secret imbedded in the CalPERS bill (SB 400)...
  • CALIFORNIA: State retirement systems placing risky wagers at taxpayer expense

    12/17/2011 6:11:12 PM PST · by SmithL · 11 replies
    Contra Costa Times ^ | 12/17/11 | Daniel Borenstein - Staff columnist
    California taxpayers should ask themselves, in the words of Clint Eastwood's famous movie character, "Do I feel lucky?" We're not staring down the barrel of "Dirty Harry" Callahan's gun wondering whether there's a bullet in the chamber. Instead, we're gambling our financial future on whether public pension fund investments will surpass reasonable expectations. If state Treasurer Bill Lockyer, union leaders and the state's largest government employee retirement funds have their way, they'll continue betting against the odds. It's not surprising. It's not their money at risk. They won't have to cover the losses. Taxpayers will. Last week, a study led...
  • Obamacare Covert Bailout Should be Scrutinized

    11/04/2011 10:44:13 AM PDT · by jazusamo · 3 replies
    National Legal & Policy Center ^ | November 4, 2011 | Mark Modica
    Back in April of this year I wrote about the covert bailout that was buried in the Obamacare bill which gives $5 billion of taxpayer money to unions, states (for public employees) and corporations for health care coverage for retirees aged between 55 and 64. The program is called the Early Retiree Reinsurance Program or ERRP. The UAW is the largest single beneficiary, receiving over 200 million dollars. General Motors also gets a piece of the pork with about a 20 million dollar cut. A recent report by the Washington Examiner identifies early retirees (many of whom are being...
  • California: CalPERS rolling out new computer system late and at higher cost ($507mn)

    09/20/2011 3:19:03 AM PDT · by TigerLikesRooster · 5 replies
    LAT ^ | 09/17/11 | Marc Lifsher
    CalPERS rolling out new computer system late and at higher cost California Public Employees' Retirement System officials hope the complex $507-million project for tracking data of 1.6 million members will work as planned, though they expect start-up problems. Reporting from Sacramento — At nearly twice the estimated cost and a year late, a new computer system for the state's giant public pension fund is scheduled to go live Monday, tracking the contributions, healthcare coverage and retirement benefits for 1.6 million members. Officials at the California Public Employees' Retirement System hope the complex $507-million project, dubbed My CalPERS, will work as...
  • California’s disastrous condition proves Democrats can’t be trusted with our future ever again

    08/10/2011 8:09:10 AM PDT · by jmaroneps37 · 8 replies
    coachisright.com ^ | Kevin “Coach” Collins
    The fortunes of California are sinking fast. We need not imagine what our lives would be like if the Democrats take top to bottom control of our lives ever again. The unmitigated disaster that is California shows us what America’s future would be if Democrats and their union masters ever regain control of our government. When disgraced and recalled California Democrat Governor Gray Davis quietly signed SB 400 a bill funding the California Public Employees’ Retirement System in 1999,he set in motion a nightmare for taxpayers and sugarplums dancing in the empty heads of the state’s unionized workers. Bill SB...
  • California officials seek higher rates for meal reimbursements

    08/04/2011 4:22:41 PM PDT · by BenLurkin · 5 replies
    sacbee ^ | August 3, 2011
    The chief executives of CalPERS and CalSTRS along with Controller John Chiang and Treasurer Bill Lockyer are asking the Brown administration to overhaul the state's travel meal reimbursement rates to help accommodate for trips to expensive locales. Read more: http://blogs.sacbee.com/the_state_worker/2011/08/california-officials-seek-higher-rates-meal-reimbursements.html#ixzz1U6X38OST
  • Medco--drug-benefit firm entangled in CalPERS bribery probe--to be sold

    07/23/2011 6:16:12 AM PDT · by DeaconBenjamin · 19 replies
    Sacramento Bee ^ | Friday, Jul. 22, 2011 - 12:00 am | By Dale Kasler
    Wounded by the CalPERS bribery scandal and other problems, a New Jersey pharmaceutical-benefits company is being sold. Medco Health Solutions Inc., one of the giants of the drug-benefit industry, on Thursday agreed to a $29.1 billion takeover by rival Express Scripts Inc. Such a deal would have been unthinkable a few months ago, when Medco was flying high. But the New Jersey company ran into a series of problems that began with its entanglement in the CalPERS bribery case. "This year has been a head-spinner for this (Medco) management team, starting out with the CalPERS issues," said investment analyst Arthur...
  • California's huge pension debt will be jarring

    07/18/2011 8:53:56 AM PDT · by SmithL · 31 replies
    Sacramento Bee ^ | 7/18/11 | Dan Walters
    When Gov. Jerry Brown and Republicans failed to reach agreement on closing the state budget deficit, they also failed to resolve several budget-related issues – most prominently what, if anything, should be done to rein in public employees' pensions. Pension costs are not yet a huge component of the state budget because the vast majority of its funds are given to others to spend. But they are huge in local governments, especially cities, which spend most of their money on personnel – especially high-wage police officers and firefighters – and face rapidly escalating pension costs. Republicans wanted to scale back...
  • Arizona Land Sells for 8% of Price Calpers Paid

    05/29/2011 3:49:53 PM PDT · by fifedom · 27 replies
    Forextv.com ^ | May 29, 2011 | staff writer
    A desert site in Arizona sold for $32.5 million this week, five years after the California Public Employees’ Retirement System paid $400 million for the land. “Of all the speculative deals I’ve seen here, this was right at the top,” McDonnell said. Calpers had investments valued at $209.7 million in MW Housing Partners III June 30, 2007. The next year, the investment had a negative market value of $102.9 million.
  • 49 CalPERS staffers investigated by state agency

    05/27/2011 2:19:51 PM PDT · by george76 · 3 replies
    Chronicle ^ | May 24, 2011 | Andrew S. Ross
    More shoes may be dropping at the California Public Employees' Retirement System. Forty-nine staff members, including the president and chief investment officer, have been notified they are being investigated by the Fair Political Practices Commission for possible violations of gift reporting requirements. ... some of the potential violations went back five years. The investigation grew, indirectly, out of the scandal involving outside placement agents and their allegedly corrupt links to senior CalPERS executives
  • Jerry Brown issues pension reform plan

    04/01/2011 3:13:06 PM PDT · by BenLurkin · 14 replies
    CCPOA news ^ | April 1, 2011
    Gov. Jerry Brown today issued a 12-point pension reform agenda his office says he will introduce in the Legislature "with or without Republican support." The first seven items seek to end abuses or tighten pension funding rules. The last five involve more systemic changes and are listed as "under development." PENSION REFORM PROPOSAL APPLIES TO STATE AND LOCAL GOVERNMENTS 1. Eliminate Purchase of Airtime. Would eliminate the opportunity, for all current and future employee members of all state and local retirement systems, to purchase additional retirement service credit. (RN 14777) (Note Walters, SB 522, would eliminate Air Time) 2. Prohibit...
  • A.M. Reading: GOP budget list includes public pension changes

    03/26/2011 10:45:35 AM PDT · by SmithL · 5 replies
    SacBee: The State Worker ^ | 3/26/11 | Jon Ortiz
    Brown's Countdown, Day 76: Budget talks deteriorate as GOP unveils big request list State budget talks between Gov. Jerry Brown and Republican lawmakers deteriorated Friday as Republicans released a long list of proposals to overhaul California government that Democrats said had further divided the parties. According to a document Senate Republicans provided to reporters, they asked Brown for pension cuts to current and future employees, as well as changes to teacher tenure that reward performance and a hard cap on future state spending, among dozens of ideas. ... The list provided by Republicans included notations of where Brown and Democratic...
  • California Moves Closer Toward Default

    03/15/2011 12:48:00 PM PDT · by GVnana · 34 replies · 1+ views
    BigGovernment.com ^ | 3/15/2011 | Chriss W. Street
    California tax payers just took a huge punch in the nose from the same actuaries who provided the cover for state politicians to spike public employee retirement benefits. The latest shocker comes from California State Controller John Chiang who yesterday unveiled a new actuarial report that shows California faces another unfunded debt of $59.9 billion to pay for retiree health and dental benefits over the next 30 years. Controller Chiang highlighted that the unfunded liability grew during the 2010 fiscal year by $8.1 billion; an amount equal to almost 25% of this year’s entire California kindergarten through high school education...
  • SCANDAL ROCKS CALPERS: Boss Forced Subordinates To Pay Millions To Consultant Cronies

    03/15/2011 8:08:18 AM PDT · by SeekAndFind · 28 replies
    Business Insider ^ | 03/15/2011 | John Ellis
    The Los Angeles Times breaks some major news this morning: In a scathing report, a former chief executive of the California public employee pension fund was accused of pressuring subordinates to invest billions of dollars of pension money with politically connected firms. A 17-month investigation also found that Federico Buenrostro Jr. — along with former pension fund board members Charles Valdes and Kurato Shimada — strong-armed a benefits firm to pay more than $4 million in fees to consultant Alfred J.R. Villalobos, who later hired Buenrostro. The report, prepared for the California Public Employees' Retirement System by Washington law firm...
  • Scathing report faults CalPERS, former chief executive on Villalobos payments

    03/14/2011 9:25:53 PM PDT · by NormsRevenge · 4 replies
    Los Angeles Times ^ | 3/14/11 | Marc Lifsher and Stuart Pfeifer
    In a scathing report, a former chief executive of the California public employee pension fund was accused of pressuring subordinates to invest billions of dollars of pension money with politically connected firms. A 17-month investigation also found that Federico Buenrostro Jr. -- along with former pension fund board members Charles Valdes and Kurato Shimada -- strong-armed a benefits firm to pay more than $4 million in fees to consultant Alfred J.R. Villalobos, who later hired Buenrostro. ... The findings of insider dealings at CalPERS could provide fresh ammunition to Republican lawmakers here who want Democratic Gov. Jerry Brown to convert...
  • Cogent: 80% Of US Pensions Underfunded

    02/27/2011 2:05:36 PM PST · by FromLori · 17 replies
    Index Universe ^ | 2/26/2011 | Carolyn Hill and Olivier Ludwig
    Just one in five U.S. pension plans has enough assets to meet obligations, a state of affairs caused largely by overly optimistic projections of investment returns that points to a range of possible scenarios, from changing benefits to pensions going broke, according to a study from Cogent Research. About 54 percent of public pensions say their current funding status is below 80 percent of what is necessary to meet their obligations, and 16 percent of the pensions are below 60 percent of what they’ll need, according to Cogent’s “Institutional Investor Brandscape” study. This shortfall is even more acute among the...
  • S.E.C. Investigating CalPERS on Disclosures

    01/06/2011 10:07:42 PM PST · by GreatJoeMcCarthy · 50 replies
    The New York Times ^ | Jan 7, 2011 | Mary Williams Walsh
    Federal regulators are investigating whether California violated securities laws and failed to provide adequate disclosure about its giant public pension fund, according to a person with knowledge of the investigation. The Securities and Exchange Commission normally polices companies, but last year it brought its first enforcement action ever against a state, accusing New Jersey of securities fraud for misleading bond investors about the condition of its pension fund. The commission signaled, in its settlement with New Jersey, that it was going to look more broadly at the pension disclosures of states and cities. The fund, the California Public Employees’ Retirement...
  • Santa Clara County fire chief, retiring but not leaving, will draw both salary and pension

    12/28/2010 3:28:47 PM PST · by artichokegrower · 81 replies · 3+ views
    mercurynews.com ^ | 12/27/2010 | Karen de Sá
    Santa Clara County's veteran fire chief, Kenneth Waldvogel, will retire at the end of the month, but the 57-year-old won't be packing up his office just yet. He'll be back on the job in January, taking home his $236,691 annual salary as a consultant -- on top of a $200,000 yearly state pension. County officials say the move gives them time to search for a new chief, but critics call the deal a classic case of "double-dipping" -- a practice that has outraged the public and frustrated lawmakers trying to rein it in.
  • Public pension war goes sexy in new video

    12/06/2010 3:04:53 PM PST · by BenLurkin · 10 replies
    oc register ^ | December 4th, 2010, 10:07 am
    We told you recently about a “hateful, vile” video where the union boss is portrayed as an out-of-control Hitler, essentially calling for the blood of taxpayers if that’s what it takes to finance his big fat pension. “L’Aristocracy de CalPERS” mines the same ground — “Thousands of retired government employees are getting pensions of over $100,000 per year, and us taxpayers have to pay for them,” the filmmakers say — but it does so with a good bit more humor, and a good bit less “vileness,” if you will. Using luscious, lavish, lascivious scenes from “Dangerous Liaisons” (the story of...
  • New Video: CalPERS New Assumptions Mean Massive Increased Cost to Cities/Counties

    11/17/2010 2:03:48 PM PST · by joinedafterattack · 9 replies
    YouTube of CalPERS Presentation ^ | 10-17-10 | JoinedAfterAttack
    Click the link for the vide and see below for details on this breaking news.
  • Budget gave Schwarzenegger a win over CalPERS

    10/11/2010 7:52:56 AM PDT · by SmithL · 9 replies · 1+ views
    Sacramento Bee ^ | 10/11/10 | Dale Kasler
    By winning a deal last week to scale back pension benefits for public employees, Gov. Arnold Schwarzenegger beat one of his most formidable opponents: CalPERS. Schwarzenegger and his aides have hammered the California Public Employees' Retirement System over the past 18 months, citing its steep investment losses and its role in raising pension benefits a decade earlier. The administration painted a portrait of a pension fund that refused to look its problems squarely in the eye. The fact that CalPERS needed an extra $600 million from state taxpayers this year – to help it cope with its losses from 2008...
  • [California] Pension crisis worse than suspected, report says

    10/06/2010 5:03:07 AM PDT · by Oldeconomybuyer · 25 replies · 1+ views
    Orange County Register (CA) ^ | October 5, 2010 | by Tony Saavedra
    California’s public pension crisis is a lot worse than anyone suspected and threatens to bankrupt the state if investment rates fail, says a report released today by the California Center for Public Policy. The report says that the state’s tax-paid pensions have made defacto millionaires out of most of California’s employees by the time they reach their late 50s. “Whether the standard is salary, working conditions, benefits or especially pensions, public employees in California receive compensation far in excess of what workers in the private sector do,” says the report. “It is illiberal and unjust.” State public employees are among...