Mayor’s incompetence costs retirement system big bucks

Apr 9th, 2014 | By | Category: Budget, Retirement
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BobsNewsflash[1],jpgThe City of San Jose (CA) operates its own pension systems, one of peace officers and fire fighters, one for everybody else.  These systems share the same investment staff.  Due to staff shortages these systems have lost an estimated $94 million over the last three years due to uninvested funds, a situation that the mayor was well aware of.  If you can believe the article linked here from the Public Sector Alliance the mayor has spent much more time touring the state lecturing others on how to fix their pension systems rather than ensuring that his own system was operating properly.

Mayor Chuck Reed was informed in writing in 2011 of the negative impact on the fund due to lack of investment staff.  The funds have about half the staff they need and many of the positions have been unfilled for years, allegedly due to low pay for the jobs.  Among those vacant is the Chief Investment Officer, a position that has been unfilled for 20 months.

 

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2 Comments to “Mayor’s incompetence costs retirement system big bucks”

  1. Alley Cat says:

    CalPERS pays its Chief Investment Officer $612,000/yr. City of San Jose? $126,000/yr. So much for being competitive.

  2. JC says:

    Funny, that.. And his measure didn’t get enough signatures either, but he is still willing to tell people how to “fix” their budget problems on the working cops and firefighters backs.