Let’s not knock CalPERS
I just read the latest story on PubSec – “Pension Madness, No Experience” about CalPERS making a $705 million dollar investment in a private equity fund.
I don’t think that vilifying PERS is in our best interest. They are actually our strongest partner in fighting those who want to take our pensions away from us. The fact that in their $300 billion dollar portfolio was a $700 million dollar investment that didn’t work out is really not a big deal.
They are so big that they have to take risks that you and I might not take, but there simply are not enough mainstream investments for them to put all of the money they hold. PERS just finished a year in which their earnings will come in at over 16% despite this one investment that didn’t work out. That means that there are hundreds if not thousands of other similar investments that did work out.
The investment folks at CalPERS are probably the best in the world. That doesn’t mean that everything they do is perfect, but my guess is they did far more due diligence on this investment than anyone else will do before criticizing them.
CalPERS is leading the fight nationally to keep defined benefit pensions. I think it would be better to talk about that rather than add fuel to the fire of those who want control of the PERS money by pointing out this one failed investment.
– Steve James, President
Long Beach, CA Police Officers Assoc.