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CALPERS Hits 13.3 Profit for 2012


Here is something that Daniel Borenstein of the Contra Costa Times or the Contra Costa Taxpayers Association won’t like to hear as it provides proof that neither has a clue of what they are talking about. All we hear for the last year from Kris Hunt (CoCo Tax) was how CALPERS would not hit its 7.5 percent projection and how pensions are bad.

Maybe in 2013, people will actually look at the facts and figures before blinding following the Contra Costa Times and this phony taxpayer association.  The truth is, the annual number doesn’t matter, it’s the long term profits that matter for the retirees.

According to the Sacramento Bee, the big pension fund said Monday it earned a 13.3 percent profit on its portfolio in calendar 2012.

That’s significantly higher than the California Public Employees’ Retirement System’s official investment forecast of 7.5 percent.

It’s also a major improvement on the fiscal year that ended last June 30, when CalPERS earned just 1 percent.

Source:  Sacramento Bee

8 Responses »

  1. Anyone that had any exposure to a mix of stocks and bonds did double digits in 2012. It was a good year. And 7.5% annually is reasonable (but does require taking risk). The fact and the problem remains is that the pension, as a concept, is an unsustainable plan. When it was designed, people were living into their 60’s and 70’s. Longevity has changed the landscape and it is not uncommon to live until 100 today. A plan that has people work and contribute for 20-30 years and then collect for 50 years is not financially sound.

  2. I did a bit more research only to find that this site only cherry pics information copied from other second hand sources. All this does is expand the spin. Maybe a complete accounting of what went on with my pension would be more helpful. The little groupies on here get excited with anything that’s on here just to get some kind of attention from the editor. Below is an account of a half year that say 13.3 percent. The rest of the time is yet to be seen until the closing of the annual books for cal pers. We all know what it has done in the past 1 percent. The only real statement made here is by DT, one of the few with a basic math education.

    The huge investment funds that feed the California Public Employees’ Retirement System, or CalPERS, gained 13.3 percent in the 2012 calendar year, a rebound after tiny net returns reported for the fiscal year ending June 30, officials announced this week.

    But while earnings rebounded in the first half of the fiscal year, they were still a little short of the 7.5 percent return CalPERS assumes for the ENTIRE FISCAL YEAR.

    And the 13.3 percent earnings reported for the 2012 calendar year also fell short of the system’s performance benchmark of 14.4 percent net returns in 2012, according to a Jan. 10, 2013 memo to CalPERS’ investment committee.

    The Euro Stoxx 50 Index, a European index fund, gained 10.3 percent; the Hang Seng Index, a Chinese index fund, gained 20 percent, and the FTSE 100 Index, a United Kingdom index fund, gained 3.5 percent.

    If it wasn’t for the Chinese these returns will never be sustainable. Just like DT said.

    For the real truth and first hand info, not some newspaper where this editor gets his info the easy way go to;

    If you do not have a piece of this cal pers pie you are blowin smoke in the wind.

  3. @DT,

    Not quite sure where you are arriving at your figures nor do I buy into them. It was the late ninties when the enhanced pensions were formulated. Life expectancy in 2010 was 78.7.
    While each year life expectancy increases, the rate at which it does has been leveling off and it remains uncommon for people to reach 100 years of age. Less than .003 of the population to be exact.

    Between the fact that employees contribute into their own retirements concurrent with employer contribution and interest the pensions are very sustainable. Don’t let a misinformed part time journalist (Borenstein) and a fluctuation in the economy fool you. The brighter minds with an expertise in finance and the economy know better. They look at the long term-not just a few year snap shot.

    In your hypothesis you claim a worker working 20-30 years is going to be collecting for 50 years….huh? So you really think a typical employee that begins a career @ 25 to 30 years of age works until a minimum of age 60 (65-70 more likely) is going to live to at least 110 or as long as 115/120 years of age?

    Not very realistic D.T.

    Where this becomes problematic is that you get wing nuts like “Joe B.S. fire/capt” all excited about a fantasy.

    However the rest of us see it for what it is… A desperate attempt at distorting the truth. The marginalized Joe Firefighter capt. Can’t help himself from rolling out his dysfunctional grasp of economic reporting. Ironically he accuses the editor of his very own condition is known as denial and projection.

    Speaking of ironies….one of the greatest nemesis of the public pension system here in Contra Costa County has been Kris Hunt/Wendy Lack’s “CC taxpayers association” (membership). Any guess who they hold hands with? Who and where they often quote from? That’s right (ding, ding, ding) “the O.C.”

    Sorry Joe but quoting Morgan Cook from the OC just exposes you as another shill.

    What’s wrong Joe, cat got your Ball?

  4. I went to and found a huge amount of information about the pension issue. I would like to thank Burk for providing this added information to help me understand what is going on with my retirement tax dollars.Ithink things will eventually be alright if the government does not go too much further in debt over this.

    • Not me, thats a group threatened by me buying up domain names around my site and name… good for them. Waste of their money!

      • Burk,

        I’ll bet you anything “joe nobody” has a direct association to the ones that bought up that domain name. Nice to see them strike out again, and for “joe” to make himself look like a dumbass.

        Your readers know by now he is nothing more than a garden variety troll trying to pose as a firefighter. What a loser!

  5. burkforoakley,
    That’s kind of strange on the .org link but there is some good information that I got out of it. This B-Wood character sure has some anger issues. Hope he or she doesn’t go postal on anyone. I suggest some psychiatric help might work before it’s too late. Thanks for the work you do burk but I think I will go to blog elsewhere until the crazy people such as B-Wood move on.

    • Joe, Joe Joe,

      Who are you trying to fool here? Clearly you are in denial and you demonstrate classic symptoms. Lying, denial, deflection, posturing, hypocrisy and narcissism. You are a troll a poser and a tool. I believe you are frustrated because you realize no one bought into your little fantasy. Instead, you only succeeded in making yourself look like a clown.

      The real question you need to ask yourself, is why does this keep happening to you? You “just can’t get no satisfaction”. Do us all a favor and go blog elsewhere and do yourself a favor and get some professional help. Even you know that you need it- It’s pretty obvious.

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