MORE ON THOSE UNDERFUNDED / OVERGENEROUS PUBLIC PENSIONS: CalPERS Made A Bet — And Lost. “CalPERS made aggressive investments in real estate at the worst possible time, when inflated property values had peaked and were already beginning to decline. . . . The magnitude of the losses almost ensures that CalPERS will raise employer contribution rates. Pension fund officials have warned state and local governments that they may be hit with fee increases of between 2 percent and 5 percent of payroll beginning as early as 2010. If the recession deepens and sales and property taxes continue to fall, that will be a very difficult burden for governments to bear.”