California City Looks To Quit Calpers, Fears It Can’t Afford ToAugust 27, 2014 – In The News
Michael A. Sweet was quoted in the Reuters article, “California City Looks To Quit Calpers, Fears It Can’t Afford To.” Full text can be found in the August 27, 2014, issue, but a synopsis is below.
The small California city of Villa Park is considering quitting the state’s giant public pension fund, Calpers, saying the monthly costs are crippling the municipal budget.
Villa Park fears that pulling out of its contract with Calpers could be too expensive, however, due to a termination fee that could exceed the city’s budget.
Michael Sweet called the termination fee “the Calpers handcuffs.” According to Sweet, for Villa Park and other cities, “the hit that they will take…will be extraordinary.”