To Gov. Jerry Brown's dismay, pension board phases in state hike
Posted by admin / Under CalPERS
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...
Published on Friday 18th of May 2012 05:37:28 PM
UPDATE 2-SEC charges former Calpers CEO with fraud scheme
Posted by admin / Under CalPERS
* 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,...
Published on Friday 18th of May 2012 05:37:28 PM
Top administrators shamelessly try to cook the pension books
Posted by admin / Under CalPERS
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...
Published on Friday 18th of May 2012 05:37:28 PM
CalPERS OKs reduction in investment forecast, costing state extra $167 million per year
Posted by admin / Under CalPERS
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...
Published on Friday 18th of May 2012 05:37:28 PM
California: Bankruptcy Upon the Union Altar
Posted by admin / Under CalPERS
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...
Published on Friday 18th of May 2012 05:37:28 PM
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