Home » Economics » “CalPERS Is Near Insolvency; It Needs A Bailout Soon” – Former Board Member Makes Stunning Admission

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“CalPERS Is Near Insolvency; It Needs A Bailout Soon” – Former Board Member Makes Stunning Admission

Two weeks ago, in the aftermath of the February 5 volocaust, we quoted David Hunt, CEO of $1.2 trillion asset manager PGIM, who said ignore the volatility spike, the real financial timebomb was and remains public pensions: “if you were going to look for what’s the possible real crack in the financial architecture for the next crisis, rather than looking in the rearview mirror, pension funds would be on our list.” 

In a brief discussion wondering what municipalities and states will do when local tax revenues decline and unemployment worsens, Hunt said “we’re worried about those pension obligations.”

He is hardly alone: having reported over and over and over (and over, and over) again that public pensions are in deep trouble, two days ago none other than Steve Westly, former California controller and Calpers board member – manager of the largest public pension fund in the US, made a stunning admission, confirming everything:

“The pension crisis is inching closer by the day. CalPERS just voted to increase the amount cities must pay to the agency. Cities point to possible insolvency if payments keep rising but CalPERS is near insolvency itself. It may be reform or bailout soon.”


The pension crisis is inching closer by the day. @CalPERS just voted to increase the amount cities must pay to the agency. Cities point topossible insolvency if payments keep rising but CalPERS is near insolvency itself. It may be reform or bailout soon.http://ow.ly/CQGw30iyLko 

Commentary: California’s public pension crisis in a nutshell | CALmatters

The essence of California’s pension crisis was on display last week when the California Public Employees Retirement System made a relatively small change in its amortization policy. The CalPERS board…

calmatters.org


…click on the above link to read the rest of the article…


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