Despite the current economic mess in the United States, the California Public Employees’ Retirement System (CalPERS) fund remains stable. Retirees will continue to receive their pension checks without interruption.
In light of recent headlines, CalPERS issued a statement to remind members that their retirement benefits are guaranteed by law and, more importantly, to reassure members that the retirement fund is solvent. As of last year, CalPERS had an overall funding ratio of more than 90 percent. This means that the market value of its assets was 90 percent of what its liabilities were for each retirement plan; this is considered excellent for pension funds.
This solvency in times when others are losing their retirement funds to bad investments reflects the importance of having a responsible organization such as CalPERS manage classified employees’ retirement funds.
Like other investors, CalPERS has suffered some losses because of the drop in stocks. However, with its team of investment experts Continue reading “CalPERS Retirement Fund Is Sound”