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 eligibility: "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 communities. "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 www.CalPERS.ca.gov.