CTNS SCRIPTS
CAPITOL TELEVISION NEWS SERVICE
SACRAMENTO, CA
(916) 446-7890
THURSDAY, NOVEMBER 20TH, 2008
• TO REQUEST 16 BY 9 FILES OF THE CTNS NEWSFEED ONLINE PLEASE CONTACT ROB GRIFFITH. THE PRELIM, MIDDAY AND SCRIPTS ARE AVAILABLE ON THE WEB AT WWW.CTNSNEWS.COM.•;
1. SCOPING PLAN WORKSHOP VO/SOT
2. PENSION FUND ANGST VO/SOT
3. REGENERATION MEDICINE VO/SOT
4. BIG SIX MEETS VO/SOT
2. PENSION FUND ANGST VO/SOT
LIVE:
A PENSION REFORM ADVOCATE SAYS THE VALUE OF CALIFORNIA'S PUBLIC PENSION FUND HAS DROPPED BECAUSE THE FUND'S MANAGERS MAKE INCREASINGLY RISKY INVESTMENTS. IN THE LAST THREE MONTHS, CALPERS, THE CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM, HAS LOST ABOUT 2O PERCENT OF ITS WEALTH, AND MAY HAVE TO TAKE MORE FROM THE STATE'S GENERAL FUND TO COVER THE LOSSES.
SUPER: TODAY/CALPERS ADMINISTRATION BOARD
VO: (:25)
CALPERS INVESTS MONEY THE STATE AND LOCAL GOVERNMENTS SET ASIDE TO PAY FOR THEIR EMPLOYEES' RETIREMENT PENSIONS AND HEALTH CARE. RETURNS ON THE INVESTMENTS ARE SUPPOSED TO ADD TO THE FUND, BUT THE RECENT COLLAPSE OF THE NATION'S HOUSING AND CREDIT MARKETS HAS LED TO CALPERS LOSING ABOUT A FIFTH OF ITS ASSETS. TO MAKE UP THE LOSS, CALPERS IS ALLOWED BY LAW TO TAKE EXTRA MONEY FROM THE STATE'S GENERAL FUND, EVEN THOUGH THE STATE IS ALREADY BILLIONS OF DOLLARS IN DEBT. MARCIA FRITZ FROM THE GROUP CALIFORNIA FOUNDATION FOR FISCAL RESPONSIBILITY SAYS THE PROBLEM WILL GET WORSE AS MORE STATE EMPLOYEES RETIRE.
SUPER: MARCIA FRITZ/PENSION REFORM ADVOCATE
SOT: (:39)
SAYS: "THEY USED TO INVEST ONLY IN FIXED, IN FAIRLY CONSERVATIVE UM, INVESTMENTS, UH, DECADES AGO, AND THAT CHANGED I BELIEVE IN THE 1980'S AND NOW THEY'RE ABLE TO INVEST IN PRETTY MUCH WHATEVER THEIR BOARD CHOOSES THEIR POLICY TO BE. AND IT'S BEEN RISKY. AND THEY'VE DONE WELL ON THAT RISK, BUT RIGHT NOW IT'S COMING BACK TO BITE THEM BECAUSE THERE, THERE MARKET VALUES HAVE SUNK, AND AT THE SAME TIME WE'VE GOT EMPLOYEES THAT ARE DRAWING DOWN THOSE ASSETS, AND THE TAXPAYERS PUT AWAY BILLIONS TO COVER THESE PENSIONS, THEY DIDN'T ANTICIPATE THE BILLIONS TO COVER THE SHORTFALL."
SUPER: PATRICIA MACHT/CALPERS
SOT: (:27)
SAYS: "IF WE GET SOMETHING LIKE A TEN PERCENT OR A 15 PERCENT UH, RETURN, UH ,LOSS THIS FISCAL YEAR WE'RE LOOKING AT UH, PROBABLY ASKING EMPLOYERS FOR LESS THAN YU KNOW, TWO-TENTHS OF ONE PERCENT INCREASE, ON THIS BASIS. AND ALSO IF WE END UP WITH A OVER 20 PERCENT, IT COULD GO UP TO, YOU KNOW A ONE OR TWO PERCENT SO, IT'S WE HOPE IT DOESN'T GO UP ANY AMOUNT FOR EMPLOYERS. BUT WE WANT TO GIVE THEM AN EARLY WARNING."
VO TAG:
FRITZ SAYS STATE AND LOCAL GOVERNMENTS ARE ALSO LEGALLY OBLIGATED TO PAY FOR EMPLOYEES' LIFETIME HEALTH CARE BENEFITS, BUT IS NOT SETTING ASIDE MONEY TO DO SO. SHE SAYS BEFORE LONG, TAXPAYERS WILL HAVE TO PAY FOR TWO WORKFORCES; CURRENT GOVERNMENT EMPLOYEES, AND THOSE WHO HAVE ALREADY RETIRED.
EDITOR'S NOTE:
THE CALPERS BOARD OF ADMINISTRATION RECEIVED A REPORT TODAY INDICATING ITS HOUSING PORTFOLIO HAS FALLEN IN VALUE, BUT HOUSING INVESTMENTS ARE ONLY ABOUT ONE PERCENT OF CALPERS ASSETS. BECAUSE IT IS NOT SELLING THOSE ASSETS, IT COULD POSSIBLY RECOVER THE LOSSES OVER TIME AS THE HOUSING MARKET REBOUNDS.
EXTRA BITES:
SUPER: MARCIA FRITZ/PENSION REFORM ADVOCATE
SOT: (:38)
SAYS: "WE HAVE NOT PUT A DIME AWAY FOR RETIREE HEALTH CARE. AND THAT'S PROBABLY THE THREE BILLIONS DOLLARS THAT HE'S TALKING ABOUT. SO ALL OF THESE EMPLOYEES THAT ARE RETIRING, WE HAVE TO COVER THEIR HEALTH CARE, PLUS WE HAVE TO COVER THEIR PENSION WITH ASSETS THAT ARE DEFLATED, PLUS WE HAVE TO HIRE THE REPLACEMENT AND OVER THEIR UM, PENSION, WE HAVE TO SET ASIDE THAT, WE HAVE TO COVER THEIR HEALTH CARE, AND PAY THEM A WAGE. WE'VE GOT TWO WORKERS BASICALLY, ONE RETIRED AND ONE NOT, THAT WERE PAYING FOR WITH THE SAME AMOUNT OF REVENUES THAT IN FACT ARE GOING DOWN. SO IT'S A CATASTROPHE."
SUPER: PATRICIA MACHT/CALPERS
SOT: (:19)
SAYS: "OVER THE LAST THREE MONTHS, THE OVERALL FINANCIAL MARKETS ARE DOWN YOU KNOW, BY 25 TO 40 PERCENT IN SOME ASSET CLASSES. AND WE'RE DOWN ABOUT 20 PERCENT TODAY. BUT UM, THAT IS THE VALUATION, AND YOU DON'T LOSE ANY MONEY IF YOU, UNLESS YOU SELL. SO WE'RE IN A GOOD POSITION TO HOLD ALL OF OUR ASSETS."
