CalPERS Reports 1% Profit, Falls Short of Previous Estimates
The earnings are significantly less than the 7.5% profit that the public pension fund had previously forecasted (Kasler, Sacramento Bee, 7/17).
According to the San Francisco Business Times, low interest rates, weak economic growth and poor stock market returns from outside managers contributed to the low earnings (Calvey, San Francisco Business Times, 7/16).
The low earnings likely will prompt the fund to impose higher contribution rates on the state and participating municipalities.
According to the Bee, this could create additional stress for public agencies throughout California that already have financial problems (Sacramento Bee, 7/17).
CalPERS Considers Rebidding Health Care Contracts
Last month, CalPERS announced that it is seeking to reduce costs with a plan to raise healthÂ insurance premiums by an average of 9.6% next year for 1.3 million public employees, retirees and their families.
The 9.6% hike in healthÂ insurance premiums is one of the largest increases in recent years and more than twice the 4.1% premium increase that took effect this year.
In addition, CalPERS likely will rebid its health insurance contracts this fall (California Healthline, 6/28).
On Monday, Capital Public Radio's "KXJZ News" reported on CalPERS' recent earnings report (Adler, "KXJZ News," Capital Public Radio, 7/16).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.