July 19, 2013 |
WASHINGTON - Detroit's historic bankruptcy filing - already thrown into turmoil by a Michigan court Friday - has ignited a largely uncharted legal front in the closely watched battle between public employee unions and governments across the country struggling to meet costly pension obligations. In Detroit, city pension funds sued Republican Gov. Rick Snyder and the city's emergency manager, saying they could not use bankruptcy to reduce the pensions of about 30,000 current and retired workers to help ease the city's $18-billion debt.
June 26, 2013 |
SACRAMENTO - Federal prosecutors are stepping up efforts to bring to trial two former officials of the California Public Employees' Retirement System indicted on fraud, conspiracy and obstruction charges. The U.S. attorney in San Francisco wants to move ahead quickly on criminal cases brought against Alfred J.R. Villalobos, a former CalPERS board member and deputy mayor of Los Angeles, and Federico Buenrostro Jr., a former chief executive of the pension fund. To do so, the Justice Department has asked federal and state agencies and judges to delay action on various pending lawsuits involving the two men. A grand jury indicted Buenrostro, 64, of Sacramento and Villalobos, 69, of Reno, Nev., in March.
May 27, 2013 |
The municipal-debt market has always rested on a simple notion - that local governments would do whatever they must to repay borrowed money. Cities wouldn't want to default on their bonds, some of which are owned by their own citizens. And they wouldn't want to alienate Wall Street, which finances many of their civic projects. The bankruptcies of Stockton and San Bernardino have shaken the decades-old faith in that premise, and turned the California cities into closely watched test cases for how municipalities grapple with deep-rooted financial problems.
CALIFORNIA | LOCAL
March 20, 2013 |
The pension fund for California teachers and school employees will run out of money by 2044 if lawmakers don't take drastic action, according to a new report from the Legislative Analyst's Office. The report said problems with the pension fund, known as CalSTRS, "may be state's most difficult fiscal challenge. " The costs are massive and growing. The latest estimate pegs the fund's unfunded liability at $73 billion as of June 2012, up from $64.5 billion the year before. "This is more costly the longer we wait," said Ryan Miller of the Legislative Analyst's Office during a hearing Wednesday.
February 14, 2013 |
SACRAMENTO -- The country's second-largest public pension fund is opposing the reelection of Walt Disney Co. Chairman and Chief Executive Robert Iger to the entertainment and theme-park giant's board of directors. Citing concerns about the company's corporate governance, the $158-billion California State Teachers' Retirement System, known as CalSTRS, announced Thursday that it will vote its 5.3 million shares of Disney stock against Iger and five other board members who are up for election at an annual meeting March 6. CalSTRS' holdings in Disney are worth $263 million and represent 0.3% of the company's outstanding shares.
February 8, 2013 |
SACRAMENTO -- The California State Teachers' Retirement System, the second-biggest public pension fund in the nation, reported a return on investments of 13.5% for the just-ended calendar year. The $158-billion fund, known as CalSTRS, said it missed an overall target of 15.4% in asset growth. But it posted strong results of 16% for U.S. stocks, 17.2% for international equities, 14.6% for private equity, 6.1% for bonds and 13.5% for real estate. CalSTRS' returns were in line with last month's report of 13.3% growth during 2012 at its larger sibling, the California Public Employees' Retirement System.