8chan/8kun QResearch Posts (1)
#9288654 at 2020-05-23 17:25:13 (UTC+1)
Q Research General #11887 Fire Memes At Will Edition
>>9288599
Moar on CalPERS
Governor Pete Wilson
In 1990, fund value reached $49.8 billion.[18] In July 1991, Governor Pete Wilson addressed the state's $14.3 billion budget deficit by removing $1.6 billion from the pension fund.[19] Wilson further sought to give the governor's office control of the PERS' actuarial projections and the appointment of a majority of its board of directors.[19] Public employee unions responded by seeking an amendment to the Constitution of California that would guarantee the board's independence, remove the fund's duty to minimize contributions or administrative costs, and require the provision of benefits to "take precedence over any other duty."[19] The initiative, known as Proposition 162, passed by a single percent at the November California elections, 1992.[19] Proposition 162, also known as the "California Pension Protection Act of 1992," gave the PERS board "the sole and exclusive fiduciary responsibility over the assets of" PERS.[16][20]
To avoid confusion with public employees' retirement systems in other states, the organization's name was changed to "CalPERS" in 1992.[15] By 1996, the CalPERS portfolio was worth $100 billion, and the number of members exceeded 1 million.[15]
Governor Gray Davis
In 1999, fund value reached $159.1 billion, requiring $159 million in state tax dollar contributions.[18] In 1999, the CalPERS board proposed a benefits expansion that would allow public employees to retire at age 55 and collect more than half their highest salary for life.[18] CalPERS predicTed the benefits would require no increase in the State's contributions by projecting an average annual return of 8.25% over the next decade.[18] When Board member Phil Angelides' aide questioned whether the stock market could grow that long, Board Chairman William Crist, a former union president, replied that they "could make all sorts of different assumptions and make predictions, but that's really more than I think we can expect our staff to do."[18] CalPERS' chief actuary, objecTed, finding that it would be "fairly catastrophic" if the fund only grew at 4.4%.[18]
The benefits expansion bill, SB 400, passed with unanimous backing by California State Assembly Democrats and was signed into law by Governor Gray Davis.[18] CalPERS then produced a video promoting the legislation with Chairman Crist promising greater benefits "without imposing any additional cost on the taxpayers" and the California State Employees Association president praising it as "the biggest thing since sliced bread".[18]
The next year the dot-com bubble burst, and CalPERS did not grow, instead losing value in the stock market downturn of 2002.[18] In 2001-2002, CalPERS provided technical assistance for the Sarbanes-Oxley Act because it had sustained financial losses from the Enron and WorldCom bankruptcies.[15] After the Great Recession, in 2009 CalPERS investments lost 24%, dropping $67 billion in value.[18] Chairman Crist retired from the board and it was later revealed he had accepTed more than $800,000 from a firm to ensure hundreds of millions of investment from CalPERS.[18]
In November 2005, CalPERS expanded its headquarters with the 560,000-square-foot (52,000 m2) "Lincoln Plaza East & West" buildings which cost $265 million.[21][22] The architecture of the buildings, which received praise, includes an entry tower 90 feet (27 m) high in a shape reminiscent of a tree which is made of steel covered with glass.[22] The project was awarded a Gold Leadership in Energy and Environmental Design (LEED) rating.[23]
Governor Jerry Brown
In 2012, Governor Jerry Brown signed legislation that reduced benefits for all new state employees and sought to combat pension spiking.[24] Legislators rejecTed Governor Brown's proposals to include a 401(k) type defined contribution plan and to require CalPERS Board members to be independent, not themselves pensioners.[24] Governor Brown promoTed the reform as the "biggest rollback to public pension benefits in the history of California", but it only resulTed in a 1% to 5% reduction in contribution increases.[24] Total savings from the reform are estimaTed to be $28 to $38 billion.[24]
In the fall of 2014, CalPERS named Ted Eliopoulos as chief investment officer. He won the #2 ranking in the Public Investor 100 for 2016.[25] Blackstone Group LP announced in November 2015 that it would acquire 43 international and domestic real estate funds from CalPERS for $3 billion.[26]
In 2016, CalPERS fund value reached $295.1 billion.[18] State tax dollar contributions have had to increase to $45 billion, a 3,000% increase from before the 1999 benefits expansion.[18] Promised benefits exceeded funds available by $241.3 billion.[27] Unfunded retiree healthcare costs add an additional $125 billion to California's public retirement debt.[27]