CalPERS Issues Statement on Little Hoover Commission Report
February 25, 2011
The California Public Employees' Retirement System (CalPERS) today issued the following statement in response to the Little Hoover Commission Report on public pensions:
"Pensions play an important role in the overall compensation of public employees today and have for nearly 80 years, and any change must honor the promises made to all public servants.
Pension promises are funded for the long-term. CalPERS has earned a 7.9 percent return over the last 20 years above our assumed rate of return and we have gained more than $70 billion back since the financial crisis.
We recognize that pension costs are a source of fiscal concern for the State, local governments, and taxpayers. We look forward to engaging with the decision makers who must rely on all the facts when confronting these important issues and recommendations."
Top 5 facts to know about CalPERS and public pensions:
- Pensions are a shared responsibility…64 cents of every dollar paid in pensions comes from investment earnings, not taxpayers. Employers pay 21 cents while public employees pay 15 cents from their own pockets.
- CalPERS has earned back more than $70 billion since the financial crisis and the System’s funding status is estimated near 70 percent.
- Pension reform is happening…State employees pay 2-5 percent more from their paychecks toward pensions, saving the State $300 million.
- Under the U.S. and California Constitution, pensions are a vested contract right.
- CalPERS is responding to recent challenges with increased transparency and accountability.
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