Remember all those public employees who rebuked us for questioning CALPERS optimism and said "don't worry!"?
Remember CALPERS prediction that they would easily return to those historic 7.75% investment returns and that all would be well in pension land?
Well, it turns out that we were right and they were wrong: Web Link
CalPERS just reported that their total investment return for 2011 was a paltry 1.1%! 1.1% The S&P 500 gained TWICE that much. So much for the "smartest guys in the room" ability to pick stocks. CALPERS should have canned them all and just bought an index fund.
But don't worry, taxpayers - YOU'RE on the hook for any shortfall.