Fifteen Years of Bad Faith from CalPERS

From U-T San Diego:

In 1999, flush with funds because of the stock-market dot-com boom, officials with the California Public Employees’ Retirement System made an extraordinary recommendation. They called on the Legislature and Gov. Gray Davis to approve a 50 percent retroactive increase in the formula used to calculate the pensions of state employees. A glossy report informed lawmakers that this could be done at little or no long-term cost to taxpayers.

But another CalPERS analysis — which warned of vast funding shortfalls if investment returns declined and the stock market cooled — was kept under wraps. A public corporation that acted in such dishonest fashion would face civil and perhaps criminal charges.

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