January 3, 2017

Your editorial published on December 31, "Another shameful betrayal by CalPERS," is ridiculously off the mark. Lowering the discount rate did so much more than "tinker on the margins" of a complex issue. It squarely confronted the reality of the low-return environment that all investors, large and small, now face.

Three years ago, the CalPERS Board adopted a policy phasing in contribution rate increases over five years for school districts and public agencies. The move greatly shortened the timetable for these agencies to pay the full amount. At the same time, it wisely acknowledged the budget realities many deal with, and gave them a clear roadmap with which to plan. It was a prudent, smart decision.

We pay the benefits public agencies and school districts promise their employees - the custodians who clean the classrooms and the cops who patrol the streets. The new discount rate properly helps ensure the money will be there for generations.

(This For the Record was sent as a Letter to the Editor to the San Diego Union-Tribune in response to its editorial, "Another shameful betrayal by CalPERS.")