Tuesday, November 25, 2008

CalPERS Loses Over $65 Billion This Year

According to the latest CalPERS press release, the fund is down to "over $175 billion."

CalPERS is the nation’s largest public pension fund with more than $175 billion in market assets. It provides retirement and health benefits to 1.6 million public employees, retirees and their families.
2008 losses to date total $65 billion, or about $1,850 for every man, woman, and child in the State of California. That's also $40,625 per member. Thankfully, taxpayers will make up the difference in the years decades to come.

Here are the losses in graphical form. Note: the scale doesn't start at zero to better illustrate change.


Anonymous said...

The data are great, but I would recommend using a y-axis that starts at zero for pictures like this (including the price data you post regularly). Using a non-zero baseline actually *distorts* the amount of change. Suppose the fund had only fallen to $210, but that $205 was also chosen as the lowest y-value. Then the picture would look about the way it does now. Having the y-axis start at zero is the only way to avoid that problem.

Darth Toll said...

So just over $100k per retiree. That's slightly better than I expected but not exactly a good number.

Rob Dawg said...

Good thing the losses are over.

Anonymous said...

As long as the state reverts back to pre runup compensation, contributions, and retirement bene's it'll be OK.


Max said...


The state doesn't really have a choice at this point. It's either higher taxes now with cuts down the line (when consumption declines), or cuts now. The bond market is about to rear its ugly head; it will not be a happy day when that happens.

Anonymous said...

Yea, that was tongue and cheek.

Getting used to my new keyboard as old qwerty liked to keep its "c" and "d" to itself.

There's plenty of fat for Arnold to find. Some tax increases there will be.

Dan Walters pointed out that the same 2 billion dollar boondoggle that school teachers got from Gray Davis that ultimately got him the boot is hurting us again... (love my teachers including my teacher friend who says its the best gig going including Thursday afternoons off)

Read where our fire staffing per capita is significantly higher than Fresno, similar sized city but with a balanced budget. (there's no reason to give out 20 year retirements coupled with stress comp coupled with dormitory living). I know too many firefighter/contractors.

While not an Obama policy supporter, I can get on his bandwagon.... showing the leadership that has been lacking... being reflected in the stockmarket and investor confidence and home loans.


Anonymous said...

Yeah, Dan Walters, that paragon of balance. He kept his fat mouth shut when the prison guards were loading up the pork (I know people in that union making $100K/year and are going to retire at 80% salary). Pick an easy target and shoot, that's the Walters style.

Anonymous said...

You're right, but this is similar to almost all public safety.... short tenures, OT, big % retirement checks and lots of double/triple dipping.

Here's one of his last on CCPOA:

Dan Walters: California's prison guards union, Indian tribes flex political clout
By Dan Walters - dwalters@sacbee. com
Published 12:00 am PDT Friday, August 29, 2008

Talking to a car guy last night who told me that the big 3 is paying similar pensions and lifetime benes to retirees who worked 20 years for Detroit.

That will obviously end soon.

Its a very simple concept.... somebody's gotta work. We can't all sit on our Fat Axx waiting for the check to arrive.


wannabuy said...

So when does Calpers 'jump the shark?' ;)

Oh, keep with you y-axis. Doesn't Calpers need to early 8%+ to fund the state pensions? So anything less than 8% is horrid! Not to mention money has continued to flow into Calpers!

Rob Dawg said...
Good thing the losses are over

Ow! zing!

Oh, Arnie had better be careful about raising taxes. I know of a half dozen small business owners who will start laying off if their takehome gets hit. (Often they take home less than their best paid employees... ahh the joy of ownership.)

Got Popcorn?