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Tag Archives: CalPERS

California Senate Shoots Down CalPERS’ Private Debt Secrecy Bill; Board Hissy Fit Reveals It Never Questioned Staff Misrepresentations

Is CalPERS’ influence in Sacramento finally slipping? While one robin does not make a spring, CalPERS’ arrogant and dishonest treatment of beneficiaries, the public, and as a result, California legislators, backfired in the form of a defeat on a private debt secrecy bill that CalPERS had touted as crucial to meeting its return targets. Yesterday, the California Senate Judiciary Committee shot down a CalPERS-only bill, AB 386, on a vote of 3 in favor, 4 opposed, and 4 abstentions. That level...

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CalPERS Long Term Care Program Bleeds Policyholders Dry via 10X Higher Premiums, Gross Mismanagement, Bad Faith Dealing

Yves here. Please welcome Lawrence Grossman, who with his wife is a CalPERS long-term care policy holder. Grossman, a financial analyst, describes the extreme underfunding of this zombie program. The rate increases that CalPERS is putting through, a 900% increase over the rates charged at the outset, are wildly disproportionate to the level of any other significant long-term care program. In other words, even by the standards of an industry that is in deep financial trouble, CalPERS’ rate...

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Dan Walters, Dean of Sacramento Columnists, Blasts CalPERS’ Corruption-Friendly Secret Lending Bill

CalPERS likes to think that all that matters is if it can control perceptions in Sacramento. If Dan Walters’ latest column is any indication, CalPERS is losing that battle. For those of you outside California, Walters has been the most influential commentator in Sacramento for decades. His view skew somewhat conservative, but he regularly calls out politicians on both sides of the aisle. His latest object of disfavor is the CalPERS-sponsored bill AB 386, which he lambasted forcefully in his...

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California Judiciary Committee Gives Blistering Assessment of CalPERS’ Fiduciary Duty Failings in Analysis of Fraud-Friendly Private Debt Secrecy Bill

It appears that at least some people in Sacramento are paying attention to what has been happening at CalPERS and don’t like what they see. Below, we have embedded the California Assembly Judiciary Committee staff analysis for AB 386, a bill providing for secrecy of private debt investments. The analysis calls out some of CalPERS’ major fiduciary duty failings in remarkably blunt terms. This matters because CalPERS claims it intends to set up an in-house unit to make direct debt investors,...

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CalPERS Employee Accused of Embezzling $685,000 from Beneficiary Bank and CalPERS Accounts Hasn’t Been Arrested, Much the Less Prosecuted. Why the Cover Up?

As storied short seller David Einhorn would say, “No matter how bad you think it is, it’s worse.” The lawyers and banking experts I’ve contacted thus far have never heard of a case like the latest from CalPERS, which is saying a lot. As you can see from the embedded filing below, CalPERS is suing Gloria Najera, a former employee it says embezzled $685,000 from beneficiaries, including, Wells Fargo style, from a beneficiary’s bank accounts. The civil claim is sketchy on the timetable, but...

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FBI Investigating Reporting Fraud at $62 Billion Pennsylvania Public Pension Fund, PSERS; Returns Allegedly Falsified to Avoid Increased Worker Contributions

Frankly, it’s surprising that it’s taken this long for an investigation of a public pension fund over allegations that it lied about its returns. But it’s not a surprise that it took Federal investigators, as in the FBI, to saddle up, in this case against a Pennsylvania Public School Employees’ Retirement System, aka PSERS. Readers regularly lament how CalPERS regularly and obviously runs roughshod over the law and board members openly violate their fiduciary duty by not even pretending to...

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LACERS Board Member Lambastes Lousy Private Equity Returns as More Studies Confirm Poor Performance for Decades

More and more public pension trustees are willing to say that the private equity emperors are looking awfully naked. LACERS has joined the club, with board member Sung Won Sohn sharply criticizing results considerably below LACERS’ benchmarks. Sohn’s views carry some weight, since he’s a prominent economist and former banker. But as important, more and more studies and papers are confirming what we’ve said for years: that private equity does not deliver superior returns. We’ll briefly...

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CalPERS Laughingstock: Marcie Frost, Who Previously Pursued Non-Existent Dual Bachelors/Masters Degree, Designates Herself Law School Grad and Bar Member; Investment Committee Chair Theresa Taylor Admits Not Knowing What SPACs Are

CalPERS continues to demonstrate how far the institution has fallen. It’s not a good look that that key actors are broadcasting the CalPERS’ diminished state by seeming totally clueless when making fools of themselves. Marcie Frost, Now Lawyer Extraordinaire Napoleon crowned himself Emperor of France. One must conclude that Marcie Frost has imperial fantasies in designating herself a member of the California bar, which also requires having a law degree or having completed four years of study...

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CalPERS Board Member Theresa Taylor Outs that a Staff Member Has Committed Fraud; When Will Giant Pension Come Clean?

CalPERS continues to demonstrate that its board is both generally unwilling to and incapable of performing its duty of overseeing staff. While discussing inadequate “the horse has left the barn and is now in the next county” measures in the wake of Chief Investment Officer Ben Meng’s resignation, Investment Committee Chair Theresa Taylor dropped the bombshell that the board has been briefed about a so-far undisclosed fraud. As we’ll show, the context makes clear that the swindle was executed...

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Pension Bridge Presents Former CalPERS CIO Ben Meng as ESG Leader Despite California Investigation for Conflict of Interest That Led to His Exit

In the old pre-Covid normal, there were all sorts of reasons to conferences: travel and dine on the company dime, see colleagues and perhaps make useful contacts, pick up industry scuttlebutt, and maybe learn something from the speakers. From what I can tell, the last motive was usually the least important. But since the other justifications aren’t operative for virtual conferences, one would assume that conference organizers would have to tweak their formulas. Thus conference sponsor Pension...

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