CalPERS’ second set of books a wake-up call
By Mary Williams Walsh, New York Times
When one of the tiniest pension funds imaginable — for Citrus Pest Control District No. 2, serving just six people in California — decided last year to convert itself to a 401(k) plan, it seemed like a no-brainer.
After all, the little fund held far more money than it needed, according to its official numbers from California’s renowned public pension system,CalPERS.
Except it really didn’t.
In fact, it was significantly underfunded. Suddenly CalPERS began demanding a payment of more than half a million dollars.
It turns out that CalPERS, which managed the little pension plan, keeps two sets of books: the officially stated numbers, and another set that reflects the “market value” of the pensions that people have earned. The second number is not publicly disclosed. And it typically paints a much more troubling picture, according to people who follow the money.
Don’t worry government workers, the Democratic legislature has guaranteed the taxpayers will pick up the difference between what money is there and what you were promised. Public employees retiring at 50 or 55 receive 2,3, or 4 times what social security retirees receive at 62. That is sweet is it not.
It may look sweet now but time is short for this type of racketeering and that is exactly what this is.