The Sacramento Bee reports that for the first time in years, CalPERS is stable enough that it no longer expects to run deficits into the middle of the century.
Unfunded liabilities still exist, however the $345 billion pension fund has a better financial outlook because it’s collecting more money from employers and making the most of recent stock market gains.
It’s a milestone in the California Public Employees’ Retirement System’s recovery since it suffered severe losses in the recession that left it badly underfunded.
CalPERS Chief Investment Officer Ted Eliopoulos said the higher payroll rates and recent investment returns put the fund in a better position to handle recent stock market swings that have swayed the value of its portfolio by billions of dollars.
CalPERS now expects to earn more money than it spends over the next 20 years. Previously, its financial outlook projected deficits through 2040.