California Public Retirement Plan May Need Additional Employer Contributions to Stem Losses
The largest U.S. public pension fund, CalPERS, has reported on its website that it may need to tap California public employers for more money if heavy investment losses it suffered in recent months do not reverse.
The California Public Employees' Retirement System said that its assets have declined by more than 20%, or around $50 billion, from the beginning of this fiscal year through Oct. 10 to stand at $190 billion.
The pension fund was estimated to be worth about $240 billion by asset size as of February.
If returns do not improve, CalPERS said, it may require that employers increase contributions by an estimated 2% to 4% of payroll. Such an increase could take effect in July 2010 for about two-thirds of the fund's state-employer members, and for the remaining one-third in July 2011.
Published on October 23, 2008
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