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How A California Pension Fund’s Decision To Sell Out Of 3 Major Hedges Could Impact Employees




 The California Public Employees' Retirement System building in Sacramento, California July 21, 2009.
The California Public Employees' Retirement System building in Sacramento, California July 21, 2009.
Max Whittaker/Getty Images

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The California Public Employees’ Retirement System, also known as CalPERS, is making headlines after it made the decision to exit three hedges last year. The investments into the three funds were an effort to receive big payoffs when and if the market slides, according to a recent piece in the Wall Street Journal. And it did, big time, thanks to the coronavirus pandemic.

Some estimate the decision resulted in the company losing out on a more than $1 billion payout. And there’s also controversy because some CalPERS board members say they were never told about the adjusted strategy and that they should have been. But the pension fund’s chief investment officer has argued the same decision would have been made knowing what they know now and that they have decided on a better strategy moving forward.

Today on AirTalk, a reporter joins us to discuss the latest with the controversy and what it could mean for employees who pay into the fund. Do you have questions? Call 866-893-5722.

Guest:

Cezary Podkul, senior reporter for The Wall Street Journal's financial investigations and projects team; he tweets @Cezary

Dan Bienvenue, CalPERS Deputy Chief Investment Officer