More Pension Math

It’s the lie that gets you.

Recently the California Public Employees’ Retirement System (CalPERS) reported that its investments in 2017 outperformed its “benchmark” by 0.25 percent. But whether CalPERS beats or lags its benchmark has little impact on pension costs, which are exploding because of explosive growth in pension liabilities. See for yourself:

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CalPERS 2016–17 Comprehensive Annual Financial Report, page 119
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CalPERS, Facts At A Glance, dollars in thousands.

Written by

Lecturer at Stanford University and president of Govern For California

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