Re “CalPERS disputes editorial, 3/15/10″:
CalPERS is right that the pension benefit boosts granted in 1999 are only partially responsible for today’s pension cost increases. But the spokesperson conveniently neglected to mention that the other major reason is CalPERS falling 60 percent short of meeting its investment return assumption.
Since investment earnings are expected to provide roughly 75 percent of pension payments, falling 60 percent short in that department has a huge impact.
This is another example of why we need full – and unspun – disclosure from state-sponsored pension funds.
– David Crane, Special Advisor to Gov. Arnold Schwarzenegger for Jobs and Economic Growth