CALPERs and financial woes

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BruceM
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CALPERs and financial woes

Post by BruceM »

This might help explain, at least in part, why California is facing such a financial crisis

http://www.californiapensionreform.com/calpers/

BruceM
bombcar
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Post by bombcar »

They'd be in much less of a crisis if they'd simply invested in a mixture of total stock market and total bond market.

I'm not sure what drives pension fund managers to invest in weird things.
sschullo
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Post by sschullo »

To CalPERS credit, they use a passive strategy for their domestic stock allocation.
I wish my pension CalSTRS would do the same.
Steve
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dual
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Post by dual »

bombcar wrote:They'd be in much less of a crisis if they'd simply invested in a mixture of total stock market and total bond market.

I'm not sure what drives pension fund managers to invest in weird things.
Did you read the linked article? Hint: It's not about investment strategy. I can't say any more without getting this post yanked.
Pacific
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Post by Pacific »

Who is the clown from Vernon who receives $41,639.57 per MONTH???????

No wonder California is such a disaster. This is incredeeeeeble.
expat
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Post by expat »

Vernon is run by two families: the Malburgs and the Malkenhorsts, neither of which agreed to be interviewed. The bespectacled Leonis C. Malburg, 77, whose grandfather founded Vernon in 1905, has been mayor for 33 years.

Bruce Malkenhorst, 71, was for 32 years the city administrator as well as clerk, finance director, treasurer, redevelopment agency secretary and chief executive of the utility Vernon Light & Power. The city was reportedly paying him $600,000 a year, more than twice what L.A.’s mayor earns, until he resigned all posts unexpectedly and without public announcement in 2005. By most accounts Malkenhorst still pulls the strings. His appointed successor is his 42-year-old son, Bruce Jr.


http://www.forbes.com/forbes/2007/0226/104.html
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bob90245
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Post by bob90245 »

Pacific wrote:Who is the clown from Vernon who receives $41,639.57 per MONTH???????
Asked and answered courtesy of Google:

http://www.google.com/search?q=BRUCE+MALKENHORST
grumel
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Post by grumel »

Rofl, poor guys, even the top 10 ends with just 200k. Make that 200million for the top ten of the Californian private sector :-).
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Post by chaz »

BruceM, thanks for the link with the interesting info. CalPers does have some problems.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
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preserve
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Post by preserve »

bombcar wrote:They'd be in much less of a crisis if they'd simply invested in a mixture of total stock market and total bond market.

I'm not sure what drives pension fund managers to invest in weird things.
a pension manager can't justify paying 5% expense ratio to their buddy for a total stock market fund.

thus they invent...


The incentive structure for the pension manager is all jacked up also. They are paid to take risks. Yet, are not rewarded for having a stable portfolio.
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BruceM
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Post by BruceM »

chaz wrote:BruceM, thanks for the link with the interesting info. CalPers does have some problems.
I thought many would find it interesting.

But I'm not sure what they are using to come up with the payment numbers, as all of them are in excess of the Sec. 402(b) limit of $195,000/yr or $16,250/month, (2009). I suspect they are using CALPERS provided health benefits and may even include 457(f) deferred comp...but not sure.

I sent an e-mail asking this, but haven't received a response yet.

BruceM
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