A Most Consequential State Election

What’s the biggest enterprise in California? Hint: It’s not Apple, Disney, Kaiser or another corporation. It’s the state’s public education system. California’s K-12 public education system is a state-operated enterprise with 300,000 employees and $87 billion of revenues. Government-funded programs…

CalSTRS’s Too-Great Expectations

In a Wall Street Journal article published yesterday, CalSTRS’s Chief Investment Officer Christopher Ailman lamented earning a 7.1% compounded annual rate of return over the last 20 years, less than his pension fund expected. Apparently Ailman doesn’t realize that 7.1%…

Truth Or Consequences

Second in a Series on Healthy Pension Fund Governance Why do some defined benefit pension plans work well while others do not? The difference arises from choices made by pension fund boards. One critical choice is illustrated below. Footnote 21…

A Tale of Two Pension Funds

First in a series Why do some defined benefit pension plans work well while others do not? Some have recovered since the 2008 financial crisis while others — including California’s public pension funds — are in worse shape. The difference arises from choices made…