Calpers misses target with 2.4% return
By Alison Vekshin, BloombergBusiness
The California Public Employees’ Retirement System, the largest pension in the U.S., said it earned 2.4 percent last fiscal year, below its target rate as financial-market turbulence depressed stock and bond returns.
The $300 billion fund earned 1 percent on public-equity holdings and 1.3 percent in fixed-income investments, said Ted Eliopoulos, chief investment officer. Real estate returned 13.5 percent, while private equity gained 8.9 percent.
Calpers must average at least 7.5 percent a year to match its assumed rate of return or turn to taxpayers to make up the difference. Calpers is among pensions under pressure to boost investment returns as their unfunded liabilities tripled to almost $2 trillion from 2004 through 2013, according to Moody’s Investors Service.
Lolz! And this is BEFORE the current crash, while the bull market was going gangbusters! Guess the taxpayers will have to make up the short-fall.
Gee this means that STPUD union employee’s may have to take it in the shorts with their cushy little retirement plans built upon us, that truly is to bad, so sorry.
Nah. It just means the productive class in California (the private sector working middle class) will be taxed higher in the future to keep up the promised pay-outs. The public sector never loses. Only the private.