(The Center Square) – A booming stock market propelled California’s main state retirement fund to near-record returns, but the fund is still $166 billion short on its obligations, according to the Reason Foundation. With the taxpayer-funded Legislative Analyst’s Office warning the state should be ready for a possible stock market peak and downturn as weak economic conditions persist, the 12-figure pension shortfall could widen once again – and leave taxpayers with the bill.
Amid these risks, and several high-profile mishaps by the California Public Employees’ Retirement System uncovered by The Center Square, one California assemblyman is wondering why the state is continuing with this system in the first place.
After The Center Square’s investigation found CalPERS lost 71% of its $468 million investment in a clean energy and technology private equity fund, Assemblyman Carl DeMaio, R-San Diego, a government finance expert and former San Diego city councilman, requested an investigation by the U.S. Department of Justice into the matter; DeMaio’s office reportedly is in ongoing discussions with the Department of Justice, which has confirmed receipt of the request but has previously declined comment to The Center Square on the matter…