CalPERS’ Portfolio Grows to Record $261.7B, but It Still Is Not Fully Funded
On Friday, CalPERS' investment portfolio grew to a record $261.7 billion, eliminating the nearly $97 billion worth of losses it sustained during the recession, the Sacramento Bee reports.
Details of Portfolio
Although the portfolio now has surpassed the previous record reached in 2007, CalPERS still has about $100 billion in unfunded pension liabilities.
CalPERS' pension liabilities haveÂ grown significantly in recent years because of increases in government payrolls, according to officials.
According to the Bee, CalPERS does not have enough money to cover all of its long-term pension obligations because of the unfunded liabilities (Kasler, Sacramento Bee, 4/26).
To address the unfunded liabilities, the CalPERS Board of Administration this month gave final approval to an employer rate hike of about 50% that will be phased in over five years. Board members say the change will fully fund CalPERS within 30 years (California Healthline, 4/18).
Comments on Portfolio
Dan Pellissier -- president of California Pension Reform -- said the investment portfolio record is "no reason to break out the party hats," adding, "You've hit this marker, but it's completely meaningless ... unless you view it in the context of the liabilities."Brad Pacheco, a CalPERS spokesperson, said, "Our liabilities never took a vacation," adding, "They continued to grow based on higher payroll. That means we have to pay out higher pensions" (Sacramento Bee, 4/26). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.