Other Notes and Comments: Backpedaling?
Tom Campbell, Director, State Department of Finance, presentation to CalPERS board, 2/15/05:
Fundamental goal is that employees, not taxpayers, bear market risk.
CalPERS could manage DC plan, continue corporate governance activism.
Nothing set in stone—other than that the retirement plan cannot be DB.
When asked if market forces might result in salary increases that would offset reductions in retirement benefits and, therefore, result in no savings to the state, Mr. Campbell said YES.