The California State Employees’ Retirement Fund (Calpers) finally released a response to recent allegations that have been swirling around political circles in California in recent months questioning their fiscal management and past track record, particularly with regard to SB 400 from 1999.
But the statement proposes no viable solutions and essentially restates their commitment to a failed pension system that literally has the potential to bankrupt the entire state if corrective action is not taken.
The statement illustrates the great disconnect between the “business as usual” approach of the Calpers board and the urgent action that needs to be taken to shore up the pension giant which is now projected to have unfunded liabilities in excess of $150 billion—a 50% increase from 2014—due to massive investment losses in 2015 and 2016.
“The recent back-and-forth debate over pensions for public employees always lands on important issues like employer contributions and discount rates. Lost in the discord, though, is what’s ultimately at stake: the financial future of millions of Americans,” according to the statement.