ABSTRACT: “Report on CalPERS Visit Daniel Davis- June 20, 2008” (City of Pacific Grove) is uploaded; the document includes sections on CalPERS governance, CalPERS investment strategy, Actions taken by CalPERS to reduce effects of volatility in returns, Rules governing calculations on refunds or costs for termination and Summary. Both the City of Pacific Grove and the City of Carmel-by-the-Sea are reliant on tourism. For the cities of Pacific Grove and Carmel-by-the-Sea, the 2009 population estimates were 14,635 and 3,903, respectively, according to the U.S. Census Bureau. The General Fund Budgets FY 2010/2011 for Pacific Grove and Carmel-by-the-Sea were $14,841,911 and $13,927,864, respectively. Links to more information on CalPERS include “Going For Broke: Reforming California’s Public Employee Pension Systems,” Stanford Institute for Economic Policy Research, April 2010 and CalPERS Response to Stanford Policy Brief on Public Pension Funds (April 6, 2010).
Pacific Grove Report on CalPERS Visit _2008_
Report on CalPERS Visit Daniel Davis- June 20, 2008 (City of Pacific Grove)
Going For Broke: Reforming California’s Public Employee Pension Systems
By Howard Bornstein, Stan Markuze, Cameron Percy, Lisha Wang, and Moritz Zander.
Faculty Advisor: Joe Nation
Stanford Institute for Economic Policy Research, April 2010
Key Policy Recommendations
• Adopt probability-based funding targets.
• At a minimum, funds should be 80% certain of covering at least 80% of liabilities, (an “80/80 strategy”).
• Make contributions at the Normal Rate without exception.
• Amortize shortfall repayments over at most half the duration of liabilities.
• Invest in less volatile asset classes (predominantly fixed income).
• Offer employees a hybrid sys¬tem of both defined benefits and a 401(k)-style system.
CalPERS Response to Stanford Policy Brief on Public Pension Funds
April 6, 2010
ADDENDUM:
Calpers Bad Bets, WSJ, December 18, 2008
1 comment:
I gather the move from defined benefit to hybrid or 401(k) type system would be for new employees only and the the cost of getting out of CalPERs is prohibitive.
In Carmel, compounding the status quo is the not so pretty fact that taxpayers are paying competitive salaries and benefits for employees who are not competitive in the capability sense. Small cities, especially in an area like the Monterey Peninsula, have trouble attracting top notch employees. Add the ongoing ethical problems with the top job of city administrator and we have a bad situation which is made much worse.
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