CalPERS today responded to the Stanford Institute for Economic Policy Research (SIEPR) report examining CalPERS, the California State Teachers’ Retirement System (CalSTRS) and the University of California Retirement Plan (UCRP):
"The study is written from a perspective that is intended to exaggerate perceived costs and the instability of pension systems,” said Ann Boynton, Deputy Executive Officer of CalPERS Benefit Programs Policy and Planning. “The report’s findings were based on low discount rates to artificially magnify unfunded liabilities. It is important to remember that CalPERS invests in a highly diversified portfolio that includes stocks, real estate, and other assets that have historically earned significantly higher returns than the rates assumed in the study.”
The health of the CalPERS fund has improved in the last two fiscal years as noted below:
More information on CalPERS pensions is available in our Guide to CalPERS Pension Facts.
CalPERS Posted On : Wednesday, Mar 28, 2012 (1 year, 36 weeks, 3 days, 1 hour, 47 minutes)
The growth areas we’ve referred to are in emerging market countries like Brazil, China, and India (to name three of the most prominent), as well as infrastructure and private equity. We do not invest directly in precious metals.
PERSMember Posted On : Wednesday, Jan 18, 2012 (1 year, 46 weeks, 3 days, 6 hours, 23 minutes)
To CALPERS, as a member, are we allowed to know what these "promising growth areas" are? As your financial advisers have most likely indicated, this economy will be tanking significantly in the next few years, if not sooner. Are we privy to know if CALPERS invests in precious metals? Willing to bet that the PERS portfolio will be over a trillion if they did. Thank you.
CalPERS Posted On : Wednesday, Dec 28, 2011 (1 year, 49 weeks, 3 days, 5 hours, 37 minutes)
Thank you for your comments and questions. The CalPERS Fund ended fiscal year 2010-2011 with a market value of $237.5 billion, a 21.7 percent increase from June 30, 2010. The Fund’s most recent high point was in early May when it hit $240 billion. However, since the beginning of July extreme market volatility has been the norm, driven first by the standoff over raising the debt ceiling in the United States followed by the ongoing debt crisis in Europe. The market value of the Fund now stands at around $225 billion. There’s no way to tell what the new year will bring, but our long-term record of 8.4 percent annual returns for the past 20 years speaks for itself. What’s more, we have the resources and liquidity to ride out the global financial system’s roller-coaster ride and take advantage of the investment opportunities that the current economic climate presents, including looking to emerging markets and other promising growth areas for superior risk-adjusted returns.
mikeinriverside Posted On : Wednesday, Dec 14, 2011 (1 year, 51 weeks, 3 days, 15 hours, 59 minutes)
My observation, around the end of June the fund was over 240 billion. That was were the 21.7% fiscal year return comes from, since June the fund has lost around 15-20 billion (depending on the markets on a given day). As a Calpers member I certainly hope that by June of 2012 the fund is well north of 240 billion! 260 billion would be a great figure around an 8% gain, but a long shot, if Europe does not get its act together.
frankliemydear Posted On : Tuesday, Dec 13, 2011 (1 year, 51 weeks, 4 days, 2 hours, 4 minutes)
Question about this statement: "As of the most recent fiscal year end, the Fund earned a 21.7 rate of return and gained back $60.8 billion from the recent 2009 low of $181 billion. CalPERS assets currently stand at more than $224 billion." If CALPERS gained back $60.8 billion from a low of $181 billion, wouldn't that give a balance of $241.8 billion? So has the fund recently lost $17 billion to bring the balance down? I don't understand the numbers, but we need to be able to defend the facts.