That didn't take long.
The budget deal is dead. No, not from a vote, not from the secret revenue projections leaking. not from the municipalities revolting. not from the bond markets closing. No, this from CalPERS who today released 2009 performance. 23% declines in assets. Correction; 23% declines in acknowledged loses to assets. What that means is that according to "the rules" the State and municipalities need to make them whole again. Ain't gonna happen.
The California Public Employees' Retirement System reported a decline of 23.4% for its latest fiscal year ending in June, marking its worst year ever.----
The pension fund saw its value fall by $56 billion from the previous fiscal year to $180.9 billion.
"The result is not a surprise," Joe Dear, Calpers chief investment officer, said in a prepared statement. "The System has more than enough cash through contributions and income from investments to meet our present liabilities."
Still, Calpers has signaled to its members that they should expect higher contribution rates in the future to make up for market losses.
Some of Calpers's worst-performing assets were private or "alternative" investments, which have attracted the interest of many public pensions and endowments in recent years. Real estate was hardest hit, falling an estimated 35.8%, and private equity was next in line with a 31.4% decline. Figures for both of these categories reflected the 12-month period ending in March.
Cash, up 1.4%, and the fund's global fixed-income, which earned 0.6%, were the only reported assets to finish higher.
The value of the fund dipped as low as $160 billion in March before rebounding by about $20 billion in the final three months of the fiscal year, according to Calpers.
Separately, the California State Teachers' Retirement System, the second-largest public fund, reported a preliminary decline of 25% for the fiscal year ending June 30, 2009, with its market value of assets falling to $118.8 billion.
Suck it up teat latchers.