CalPERS has yet to recover the approximately $42 million in pension payments to 22,000 dead people, according to an internal audit. About 1,800 CalPERS recipients die each month, and the agency isn’t immediately notified.
The $95 billion pension has pushed back against an independent review that it has not been transparent when it comes to earnings and fees associated with alternative investments like hedge funds and equity firms.
The city wants to offer $100 million in pension obligation bonds, a move that both lowers pension debt and increases the funds’ earning power by providing more money to invest. But the sale is considered risky.
Much depends on their tax structures, particularly if Prop. 13-style tax caps are in place. But inflation-driven pressure for wage increases could squeeze budgets and crush pension funds.
State legislatures will have a lot on their plates. They’ll deal with issues in wildly differing ways. We set the context for the 2020 session with an overview of abortion, election security, housing, immigration, net neutrality, pensions, pre-emption, recession fears, redistricting, vaping, and workforce.
A recent Urban Institute analysis shows how many years new state workers will need to put in before earning pension benefits from their employers.