Reed Interview: CalPERS Cost Taxpayers $400B
In an interview this week with the Kersten Institute, RSI board member and former San Jose Mayor Chuck Reed said that with the passage of SB 400 in 1999 and subsequent actions, the California Public Employees’ Retirement System (CalPERS) has committed the worst financial fraud in the history of the state and probably the country.
SB 400 dramatically expanded pension benefits for public employees in California, including retroactive benefit increases, and became the new statewide standard for pension benefits, despite the fact that the costs of the benefits have accumulated a massive burden of debt for California taxpayers.
According to Reed, CalPERS was able to get the California Legislature to pass SB 400 in 1999 by saying that it would "not cost taxpayers a dime…Well that is true, it did not cost a dime, it cost them more than $400 billion."
To read Chuck Reed's interview in its entirety, click here.