Here's something you might be interested in.
The California Public Employees' Retirement System, the nation's largest public pension fund, reported today (Oct. 23) that it has lost 19 percent since its fiscal year began July 1 through Oct. 10. The portfolio has shrunk from $239.2 billion to $192.7 billion. Unless market conditions turn up, the fund, called CalPERS, may have to boost employer contributions 2 to 4 percent of payroll beginning in 2010. Cities and counties pay about 13 percent of their payroll to CalPERS. Such an added payment would strain budgets of public entities that are already on the brink. The state's other big pension fund, the California State Teachers' Retirement System, is also experiencing big losses but hasn't yet suggested that its rates may have to go up. It says its loss has been 9 percent to $147 billion in its fiscal year.
The California Public Employees' Retirement System, the nation's largest public pension fund, reported today (Oct. 23) that it has lost 19 percent since its fiscal year began July 1 through Oct. 10. The portfolio has shrunk from $239.2 billion to $192.7 billion. Unless market conditions turn up, the fund, called CalPERS, may have to boost employer contributions 2 to 4 percent of payroll beginning in 2010. Cities and counties pay about 13 percent of their payroll to CalPERS. Such an added payment would strain budgets of public entities that are already on the brink. The state's other big pension fund, the California State Teachers' Retirement System, is also experiencing big losses but hasn't yet suggested that its rates may have to go up. It says its loss has been 9 percent to $147 billion in its fiscal year.