Full Breakdown
CalPERS Investigation Highlights Governance Gaps and Calls for Oversight
5/23/2026, 1:14:56 AM
Findings
A 255-page forensic review commissioned by the Retired Public Employees’ Association of California found governance failures at CalPERS, citing chronic underperformance, opaque private-equity valuations, excessive executive pay and undisclosed fees, and urging an inspector general with subpoena power to audit the $625-$630 billion fund.
Background
CalPERS, the nation’s largest public pension, serves 2.4 million members and holds about $630 billion of the $6 trillion in U.S. public-pension assets. In the last decade it raised private-equity exposure to roughly 17 % of its portfolio, prompting calls for more disclosure.
Key Data
- Returns: bottom 15 % of 230 public pensions for five- and ten-year periods (Siedle).
- “Zombie” private-equity funds: 9 % of assets, generating minimal returns while incurring fees.
- Executive pay: four officers > $1 million, four > $900 k, 26 between $500-$900 k.
- Funded status: 84 % (Frost) vs 79 % (other source); unfunded liabilities $179 billion.
Official Responses
CalPERS CEO Marcie Frost called report “an opinion piece full of baseless assertions… designed to make members fear for the stability of their pensions” and cited top-5 % rankings. RPEA President Margaret Brown said fund “requires Office of Inspector General, independent with subpoena powers, to get records.” Sen. Dave Cortese, SB 1319 sponsor, lamented Appropriations Committee’s decision to kill bill.
Criticisms
Forensic investigator Edward Siedle said public pensions should be most transparent funds and that lack of transparency is fundamentally wrong. Former Iowa pension risk officer Rich Wiggins said it is easy to snow people and called for an external auditor. The report identified a conflict of interest in Wilshire Associates, owned by private-equity firms that CalPERS invests in.
Conflicts
Frost claims top-5 %/top-15 % rankings, while Siedle’s analysis places CalPERS in the bottom 15 % for long-term returns. Funded status is reported as 84 % by CalPERS and 79 % by other sources. Siedle says CalPERS provided a 20,000-page link and a DVD that he could not review.
Verbatim Quotes
- “Public pensions are supposed to be the most transparent funds in the world,” — Edward Siedle, forensic investigator
- “It’s so easy to snow people,” — Rich Wiggins, former Iowa pension risk officer
- “What’s more disappointing is for Appropriations to kill the bill this early in the process,” — Sen. Dave Cortese
- “All they seem to be asking for is more transparency, and I think it’s a fair ask,” — Doug Orchard, documentary director
Outlook
RPEA leaders continue to press for an inspector general, while CalPERS maintains opposition to SB 1319. The documentary “Pension Fight Club” is slated for public screening, and Rich Wiggins’ wrongful-termination lawsuit proceeds, suggesting ongoing scrutiny of CalPERS governance.
