Pension Reform

California cities facing growing pension costs in new year

SACRAMENTO – After two years of miniscule investment returns, the nation’s largest state pension fund – the California Public Employees’ Retirement System – has once again lowered its expected rates of return. Even some CalPERS officials and consultants argue the

Bad news for U.S. is good news for CalPERS, CalSTRS

Chris Reed December 27, 2016

The California Public Employees’ Retirement System has not had a good 2016. Its investment returns were microscopic, it faced sharp criticism from a prominent financial website for alleged unethical behavior and Gov. Jerry Brown had to intervene to prevent the nation’s largest

CalPERS considers – then rejects – efforts to end tobacco divestment

Steven Greenhut December 20, 2016

SACRAMENTO – As the nation’s largest state-based pension fund, the California Public Employees’ Retirement System is known for using its massive investment muscle to promote various social-investment causes. So-called ESGs – Environmental, Social and Governance issues – are a major

California’s largest public employee union strikes deal with Gov. Brown

James Poulos December 7, 2016

Gov. Jerry Brown came to an agreement with SEIU 1000, resolving a crisis over negotiations with the public employee union, California’s biggest. The bargain struck came relatively close to Brown’s initial offer, sharpening the ongoing debate over how best to budget for

CA Supreme Court to review pension case with nationwide implications

James Poulos December 1, 2016

Reigniting a perpetually smoldering debate with nationwide implications, the California State Supreme Court agreed to consider whether rules cracking down on pension boosting strategies could be applied to unionized government workers. “A state appeals court in San Francisco ruled in a

Union appeal focuses attention on pension precedent

Steven Greenhut October 11, 2016

SACRAMENTO – A decision by four Marin County public-employee associations to appeal a pension-related case to the California Supreme Court could ultimately determine whether localities have the tools needed to rein in escalating pension debt. At issue is how far

CalPERS has faith in imperiled energy status quo

Chris Reed March 28, 2016

Is the California Public Employees’ Retirement System about to make another big mistake with a mistimed investment strategy, this time in the industrial solar sector? Beginning 13 years ago, CalPERS invested heavily in real estate at the height of the

LAO raises doubts about teachers’ pension bailout

Chris Reed February 11, 2016

A new report from the nonpartisan Legislative Analyst’s Office is raising questions about the long-term effectiveness of the Legislature’s 2014 bailout of the California State Teachers’ Retirement System, which will nearly double annual funding to cover CalSTRS’ obligations when it

LAO: Teacher pension fund too risky and complex

Matt Fleming February 5, 2016

Policy analysts are calling on state lawmakers to simplify the way the teachers’ pension fund gets funded — to improve oversight and to avoid the state being left in a lurch. According to the non-partisan Legislative Analyst’s Office, the “subjective” funding

Pensions initiative pulled

James Poulos January 22, 2016

The landmark effort to take public pension reform straight to the people of California has been withdrawn from ballot consideration. “Beleaguered by fundraising doubts and attacks from organized labor, two former California officials said Monday they are backing off plans