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Calpers far underperformed the Standard & Poor’s 500 Index, which gained 3.1 percent in the year through June 30 before even including dividends.
"The last 12 months were a challenging period for all investors,'' Joe Dear, Calpers chief investment officer, said in a conference call.
That’s certainly true. But Calpers did worse than investors who simply put their money in a stock index fund.
Calpers has trimmed its annual investment return target to 7.5 percent from 7.75 percent. And Dear says he believes that’s realistic, despite the latest setback.
There is not a pension fund in the country which has prefunded half a century's worth of benefits. That's not how pension funds work and the very fact that you do think they work that way speaks more to your own ignorance and lack of knowledge than anything else.
The right wing liars were proven wrong again. Not that they'll ever learn or come back to reality and instead they just slink off to repeat the same failed lies again in a new thread. It's sad but that's the right wing way.
There is not a pension fund in the country which has prefunded half a century's worth of benefits. That's not how pension funds work and the very fact that you do think they work that way speaks more to your own ignorance and lack of knowledge than anything else.
California's three largest pension systems have promised $500 billion beyond their current ability to make those payments to retirees, according to a study released to today by Stanford University Professor and former Democratic Assemblyman Joe Nation and a student researcher.
Among the report's findings for CalPERS, CalSTRS and the University of California Retirement Plan:
Using a "risk-free" or low-risk discount rate -- a method that is debated when experts talk about figuring out a pension system's obligations -- the total unfunded liability for CalPERS, CalSTRS, and the UC system is $498 billion. That's up 17 percent higher than the $425 billion shortfall Stanford estimated in April 2010.
So you think California is going to generate $500 BILLION to cover that obligation, huh?
There is not a pension fund in the country which has prefunded half a century's worth of benefits. That's not how pension funds work and the very fact that you do think they work that way speaks more to your own ignorance and lack of knowledge than anything else.
Fully funded doesn't mean they have all the money in the bank. It means they meet the minimum actuarial reserve threshold. When we talk about underfunded pensions that's what we are saying - they don't have the minimum reserves necessary.
One of the biggest problems is low interest rates. The plan fiduciaries are often forced to invest a large percentage of the assets in risk-free investments. Those currently pay little. Meanwhile the politicians make decisions on unrealistic returns. Often 8%.
Another source of underfunding is expected contributions. Public union pensions are seeing this now as they are forced to cut employees. They were expecting current receipts at higher levels than materialized.
There is one pension program that is 100% funded - 401(k) plans. Those dollars are there. Most traditional defined benefit plans are not - not even close.
The catch-22 is that in absence of new participants the DB plans collapse.
Well, now that the state legislature has their democratic party super majority, and full tyrannical control of the state, their liberal Utopia should be just around the corner.
Well, now that the state legislature has their democratic party super majority, and full tyrannical control of the state, their liberal Utopia should be just around the corner.
And the article clearly says that more cuts will be made to deal with the problem. What the F do you haters want? Oh wait, I know. You either want everyone in California to die, or you just want to complain about California until YOU die.
that's right, we are evil because e don't ant to keep digging ourselves deeper in debt...we are mean for saying not to a bunch of spoiled brat.
that's right, we are evil because e don't ant to keep digging ourselves deeper in debt...we are mean for saying not to a bunch of spoiled brat.
It is difficult for you to be concerned with deeper debt when California is running a surplus. The OP's view of California's shortfall is undercut by the fact that the state is running a surplus.
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