Calpers Whiffs

Calpers, the largest US pension fund, just reported its results for last fiscal year, ended June 30. Its investment return for the year was 0.6%, down from the previous year’s 2.4%. And this with a bull market in both stocks and bonds, to say nothing of California real estate.

This is a disaster that isn’t waiting to happen – it is well underway, right in front of our eyes. I’ve beaten the drum of its under-funding in the past, so I’m not going to bother again. In addition to its history of corruption, it is well known for being an obnoxious and left-wing activist shareholder, but this isn’t helping the 1.7 million employees and beneficiaries. The labor unions who choose Calpers’ directors assume that they can take what they want from the public wallet, so they choose activism over savvy, but at some point they’re going to be regretting that choice.

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