Critics, including Examiner columnist Steven Greenhut, continue charging that the CalPERS assumed rate of return of 7.75 percent is too optimistic and that the CalPERS unfunded pension gap is much wider than stated.
This unfounded claim is drawn from our decision to reduce the assumed return rate to 3.8 percent for jurisdictions that terminated their CalPERS pension plans. Our terminated pool of assets no longer receives employer or member contributions, and no longer accepts new members, but we must still maintain funds to pay pensions of existing members.
Our decision to set the rate for the terminated agency pool at 3.8 percent is based on the prudent strategy to reduce risk by investing more conservatively to protect longterm benefits. But the CalPERS active pension fund receives contributions from employers and members, along with a more aggressive, but still realistic, investment income from a broadly diversified portfolio.
Over the last 20 years, approximately 64 cents of every dollar paid in pensions has come from investment earnings — with employers only paying 21 cents and members only 15 cents.
Robert Udall Glazier, CalPERS, Sacramento
SF should focus on itself
I have often wondered why San Francisco refuses to do good for itself. For example, who is the sanctuary city policy helping, except illegals?
If The City wants to be a true “sanctuary,” why not first be kind to the legal citizens who live here. Encourage business and hence jobs. This could be done by having tax-free zones for manufacturing and service sector companies. The business generated would help everyone — as well as adding to city coffers.
Other cities just aren’t as punishing, difficult or as obstreperous to live in as San Francisco. The cold fog here isn’t good enough weather to make up the lack of foresight and consideration running rampant in the atmosphere around City Hall.
Janet Campbell, San Francisco
PG&E should pay the price
Federal revelation of what amounts to a criminal conspiracy by the politically powerful utility PG&E, comes as no surprise. Perhaps in a more just world, the sycophants in the San Francisco political establishment who facilitated PG&E’s defeat of public energy efforts here would also be duly charged as co-conspirators. But that list is too long.
It is ironic that the Obama administration’s Justice Department has concluded what many have known all along. Look for all charges to be summarily dismissed.
George Gutekunst, San Francisco