CalPERS has missed out on as much as $3 billion in investment gains since the nation's largest defined benefit plan shed its tobacco holdings, as that industry powered ahead, a recent report from its consultant states.These are the guys whose investment mistakes create open-ended liabilities for cities like Encinitas. And our local leadership has done nothing to rein in pension costs since the Jerome Stocks council did a partial rollback of the 2005 giveaway. Meanwhile, annual pension costs are rising by double digits every year and it's still not enough to keep up with promised benefits.
That has the California Public Employees' Retirement System weighing whether to take up the habit again. Members of its investment committee on April 18 are expected to consider a plan that could allow the $291.2 billion system to reinvest in tobacco company stocks and other sectors that had been culled from its portfolio.
CalPERS was already severely underfunded before it missed its investment targets last year. It's shaping up to report yet another horrific performance for the current fiscal year ending in June, meaning even more rapidly rising annual costs to the city of Encinitas to keep the employees in six-figure early retirement.