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A CalPERS Comeuppance: Welcome to the Hotel California
The Wall Street Journal; subscription may be required Link to more items from this source
Oct. 7, 2014
"In 2011 Calpers adopted a policy of discounting the termination fee at a rate tied to 10- and 30-year Treasurys in lieu of the 7.5% rate it ordinarily uses to calculate unfunded liabilities. This sleight-of-hand blows Stockton's $212 million unfunded pension liability up to $1.6 billion. Welcome to the Hotel Calpers. You can check out anytime you want, but you can never leave. Judge [Christopher] Klein called Calpers's extortionist ploy a 'golden handcuff,' adding that 'the city's contract with CalPERS could be rejected' and the 'lien can be avoided.'"

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