by Bob Walsh
CalPERS is the largest public employee pension fund in the known universe. They do, on occasion, have to deliver bad news. They hate that because, like many messengers, they often get the BLAME unfairly. They are trying to get out of that.
They are proposing a new law to the CA legislature that would require public employees to notify their pensioners when a local agency decides to bail out of CalPERS.
This stems from situations with the small city of Loyalton and the East San Gabriel Valley Human Services Consortium. They both stopped paying their cut to CalPERS. CalPERS stopped paying the pensioners. The pensioners blamed CalPERS.
CalPERS wants the law to require that organizations that decide to bail must notify their membership within seven days of making that decision. The East San Gabriel Valley organization took nineteen MONTHS before they took that step. Pensioners from the East San Gabriel Valley group got their pensions cut by 63%. They were not happy. I can imagine not.
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