Tuesday, September 21, 2010

CalPERS: raises and bonuses for incompetence

Just to remind you, these are the guys who we're trusting to earn 7.75% annually forever in an environment where Fed Funds and CDs earn 0% and long-term Treasuries earn 3% - 4%. And if they don't hit that lofty goal, Encinitas taxpayers will be required to make up the difference.

As its investment portfolio was losing nearly a quarter of its value, the country's largest public pension fund doled out six-figure bonuses and substantial raises to its top employees, an analysis by The Associated Press has found.

Board member Tony Olivera said the California Public Employees' Retirement System tried to reduce the bonuses but was under contractual obligations to pay them.

CalPERS' plunging value came as stock values tumbled around the world, the state's economy suffered its worst decline in decades and basic state services faced severe budget cuts.

Virtually all of CalPERS' investment managers were awarded bonuses of more than $10,000 each, with several earning bonuses of more than $100,000 during the 2008-09 fiscal year. The cash awards were distributed as the fund lost $59 billion.

Thanks for spiking the pension liabilities 40%, Dan and Maggie!

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