If it Ain’t Broke…
Q: What is the significance of “under-funding” of CalPERS?
A: Privatizers have taken a snapshot of one year.
At times the fund has been OVER-funded and at other times under-funded.
Recently were over-funded by 123.5% allowing employers to cut contribution by over $6.05 billion.
Economic downturn led to increase in employer contribution
Fund now bouncing back earning 23% in 2003 and increasing assets by $30.4 billion.