[quote=SK in CV]Exactly the same thing could have happened in a defined contribution plan, though it’s unlikely that any kind of DC plan would ever have the assets that CalPERS has. This wasn’t a function of the type of plan, if true, it was purely criminal activity.[/quote]
Yep. From what I understand, it did happen, and I’m so very glad that somebody is finally being held accountable. These bribes and conflicts of interest at CalPERS (and other pension funds) are one of the main reasons these funds have been dabbling in very risky investments that they have no business being in, IMHO. If not for Wall Street, we would not be in the mess we’re in today WRT public pensions.
I would love for them to go back to the “good old days” when they were almost exclusively in very safe bonds and most/all of their investments were handled in house. Yes, that would mean somewhat lower returns and probably lower benefits, but I think that’s the more responsible way to handle DB pension funds.
