With their massive stock holdings, CalPERS and CalSTRS have been leaders in pushing companies on issues such as sky-high executive pay, captive corporate boards that lack diversity, and hurdles to putting resolutions up for a vote by all shareholders. The two giant pension funds are out front again in a new climate-change wave pushing companies […]
A case that could result in the state Supreme Court reviewing the California Rule, which has overturned several voter-approved public pension cuts, is fully briefed and ready to be scheduled for oral arguments. As record-high pension costs take a growing bite out of government budgets, causing tax hikes and cuts in staff and services for […]
Investments earning 6.7 percent during the fiscal year that ended June 30 might seem like a good return, particularly after an alarming stock market drop at the end of last year. But for CalPERS it’s a loss that creates new pension debt. The big pension system currently needs earnings of at least 7 percent to […]
The annual payment to CalPERS for state worker pensions next fiscal year is expected to be $7 billion, a jump from $6.4 billion this year — and a quantum leap from $160 million when a pension increase, SB 400, was approved 20 years ago. It was 1999 and CalPERS was in its golden years, thanks […]
A San Diego city attorney urged an appeals court last week to order talks with unions on repaying 4,000 employees for pensions illegally replaced by 401(k)-style plans under an initiative, a cost some estimate could reach $100 million. If the talks result in agreement, the city attorney suggested the pact could go back to voters […]
Voter-approved pension cuts were the first wave of court cases after public pension investment funds had huge losses in a stock market crash a decade ago, creating the need for big bites out of government budgets to pay alarming debt. Ballot measures in cities large and small were overturned by the courts, from a blunt-force […]
As he requested, Gov. Brown will get a chance before leaving office to defend a public employee union challenge to his pension reform that some think could result in a ruling allowing pension cuts. The state Supreme Court yesterday announced oral arguments scheduled Dec. 5 in Los Angeles on a firefighter appeal to allow employees […]
El Segundo and Arcadia were among two dozen cities urging the CalPERS board last month to avoid another employer rate increase, the fifth in the last five years, when adjusting its $344 billion investment portfolio this month. Last week, the two well-funded cities, both with currently balanced budgets and high service levels, considered sales tax […]
It’s time to bring in some “Mad Men,” like those vintage Madison Avenue advertising professionals in the critically acclaimed television show, and run the name of a new state retirement savings plan up the flagpole and see who salutes. The current name, Secure Choice, doesn’t say much about a big new program that in five years could […]
The annual cost of state worker pensions would increase to $6 billion in July in a recommendation from CalPERS actuaries, up $521 million from the current fiscal year and double the amount paid a decade ago. School districts would pay $2 billion next year for the pensions of non-teaching employees, up $342 million from the […]
