Advocating on Behalf of the American Military and Defense on the War on Terror

As of last year, CalPRS has $525 billion in unfunded liabilities.  But that was based on a return on equity of 7.75%.  Instead the return was a NEGATIVE 4.8%–a difference of 12%.

That 12% will be added to the unfunded liabilities—$11 billion more of unfunded liabilities.

“The fund’s value declined to $226.1 billion as of June 8, down from $237.5 billion at the start of its fiscal year July 1. As recently as March 31, the fund was up 1.9 percent for the first nine months. Since May 1, the Standard & Poor’s 500 (SPX) index of stocks declined 5.8 percent. Half of Calpers’s money is invested in equities.”

California is in a Depression.  At a minimum the new deficit is $61 billion or as much as $75 billion. Totally unsustainable—as is the government pension systems.  The State will have a fiscal collapse the first quarter of 2013.  The pension systems are not far behind.

Why isn’t this a front page story in the Times, Bee or Chron?  A 12% loss is gigantic, but not enough to make the back pages of mainstream media.