Bonuses paid but billions lost
Bonuses amounting to millions of dollars have been handed out by the two biggest public employee pension funds. The bonuses have been paid to the investment managers and the top executives. However, the fund has lost millions of dollars due to the current recession.
The biggest bonus amounting to $322,953 was paid to the chief investment officer of the California State Teachers’ Retirement System. Officials say that more such bonus checks will be handed out to the employees despite the losses. According to them, the bonuses will help attract the employees towards the organization and help in the retaining process.
There are bonus plans of both CalPERS and CalSTRS through which the employees are rewarded. The bonus funds are dependant on market investments as well as other portfolios or market conditions. Due to the present economic down slum, both the funds have suffered huge losses.
CalPERS, which is the biggest pension fund in United States has lost around 2.4 percent on its investments. However, the fund agency has spent around $4 million as incentive bonuses to the 58 employees who were working for the investments. On the other hand, CalSTRS lost around 3.7 percent on the investments in the last fiscal year.
Recent surveys have shown that around $1.3 trillion have been lost by various public pension plans all over America.