California taxpayers may see the municipal pension contributions they fund for the California Public Employees’ Retirement System rise as much as 50 percent under a plan to fill $87 billion in unfunded obligations.
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.
The California Public Employees’ Retirement System is seeking to sue bankrupt San Bernardino over missed pension payments, the second potentially precedent- setting fight the fund picked with a California city this year.
California Governor Jerry Brown sued State Street Corp. in 2009, when he was attorney general, for “unconscionable fraud” against pension funds over foreign- exchange pricing. That didn’t stop the largest of the funds from striking a new three-year deal with the firm.
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.