Press Alert from CalPERS

Press Alert from CalPERS
As we all pay close attention to the happenings in the City of Detroit and the state of Illinois,
here is a press release from CalPERS regarding the ruling affecting the City of Detroit.
Ray Snodgrass
State Retiree Director
December 3, 2013
Press Alert
CalPERS Calls Detroit Bankruptcy Ruling "Short-Sighted"
SACRAMENTO, CA – The California Public Employees' Retirement System (CalPERS) today
issued the following statement in response to a ruling in the City of Detroit bankruptcy
"The Detroit court failed to recognize the difference between a two party contract and the unique
nature of a state public employee retirement system, which creates a three-way relationship
among a public agency, its employees and the retirement system. In California, our members'
vested rights to their pensions are protected by the California constitution, statutes and case law.
"Unlike Detroit, CalPERS is not a city pension plan. CalPERS is an arm of the state and was
formed to carry out the state’s policy regarding public employees. The Bankruptcy Code is clear
that a federal bankruptcy court may not interfere in the relationship between a state and its
municipalities. The ruling in Detroit is not applicable to state public employee pension systems
like CalPERS.
"The ruling is short-sighted and does not take into account the promises made in exchange for
the financial and physical investments that public employees and retirees make in our
"CalPERS will continue to protect and champion the public employees and retirees who serve
California every day."
CalPERS is the largest public pension fund in the U.S., with more than $278 billion in assets. We
administer health and retirement benefits on behalf of 3,064 public school, local agency and state
employers. Our members number more than 1.6 million in our retirement system and more than
1.3 million in our health plans. For more information about CalPERS visit