Author: David Crane

Exxon, CalPERS and CalSTRS: Partners In Deception

Everyone knows about Exxon’s history of suppressing scientific studies linking fossil fuels and global warming. Fewer know about CalPERS’s and CalSTRS’s suppression of the true math associated with California’s unfunded pension obligations. As a consequence of that suppression, pension costs…

For Whom the California Budget Tolls

Who Really Bears The Burden Of Unfunded Retirement Costs Journalists and elected officials occasionally make the mistake of viewing budget problems in terms of size rather than where the budget item falls. For example, the costs of unfunded pensions and…

Fix Medi-Cal Or Lose UC and CSU

The Big Problem About Which Little Is Written As a new Congress takes office, newspapers are filled with articles about the potential consequences for California of federal changes to Medicaid but not about how California’s existing version of Medicaid — known as “Medi-Cal” — is…

CalPERS Must Stop Spinning, Part II

In response to a press inquiry about CalPERS’s recent board decision to require greater pension contributions from state and local governments, a CalPERS board member had this to say about investment markets: “The last 10 years [have] been fairly stagnant.”…

CalPERS Refuses To Bite Bullet

Will Continue Deferring Costs To Next Generation According to the New York Times, CalPERS will not consider cutting its investment return assumption below 7 percent, a rate well above long term historical returns for similar portfolios and its consultant’s forecast.…

Next Generation Is On CalPERS’s Menu

“If you’re not at the table, you’re probably on the menu.” — Dave Low, Executive Director, California School Employees Association “Pay now or pay more later.” — CalPERS board member Richard Gillihan, appointed by Governor Jerry Brown The CalPERS board is considering a…

Clearing Up Some Pension Math

Say you invested $1000 in 2005 and earned these returns through 2015: Compounded Annual Gain = 6.7% Even though your portfolio suffered a material decline during the Great Recession, your compounded annual gain over that period would still be 6.7% and…

Public Pension Costs: Potential Good News for Californians

The California Supreme Court has decided to hear the MCERA case, which as explained here potentially is good news for citizens. Now citizens should turn their attention to CalPERS’s board, which in February will decide on its consultant’s recommendation to…

Time For CalPERS To Lead

According to a recent article, the California Public Employees’ Retirement System (CalPERS) is considering a meaningful reduction in the investment return it assumes when establishing pension contributions. Future generations should hope CalPERS’s board makes the change. Public employee pension costs…

MCERA: Will CA Supreme Court Justices Be Courageous?

The California Supreme Court has until early December to rule on a request by public employee unions to de-publish an Appellate Court ruling that could help citizens meet rising public pension costs. Public employee pension costs are designed to be…