The California Public Employees’ Retirement System said it is in talks with Governor Arnold Schwarzenegger ’s administration on a proposal to borrow $2 billion from the fund to help the state balance its budget.
The California Public Employees’ Retirement System, the largest U.S. pension, said it’s cooperating with a state investigation into whether its top staff and board members failed to properly disclose gifts.
Victories for measures to rein in pension costs in San Diego and San Jose, California’s second- and third-largest cities, may show other cash-strapped U.S. municipalities a path to follow, local officials say.
Benefit payments in 2010 by the California Public Employees’ Retirement System, the largest U.S. public pension, spurred more than $26 billion in economic activity in the state, the fund said in a report.
The California Public Employees’ Retirement System’s outside money-managers paid $180 million over the past decade to middlemen they hired to win business from the largest U.S. public pension, according to a report examining the use of so-called placement agents.