"Bay State’s pension fund loses nearly $13 billion" by Todd Wallack and Matt Viser, Globe Staff | July 29, 2009
The Massachusetts state employees pension fund had its worst performance in recent history in the fiscal year that ended June 30.... in large part because of steep declines in both US and foreign stock markets last summer. The fund lost 23.6 percent, or nearly $13 billion.
Massachusetts is accustomed to having one of the best public pension funds in the nation. But it fell to the bottom quarter of all major funds, based on one-year results. It was the first time that’s happened in 15 years, said Michael Travaglini, executive director of the Massachusetts Public Reserves Investment Management Board....
And this guy got a BONUS?
"Michael Travaglini, executive director of the state’s Pension Reserves Investment Management Board, earned a $45,000 bonus, boosting his pay to $367,000."
Also see: Mismanaging the Massachusetts Pension Fund
The $37.8 billion fund administers benefits for more than 135,000 government employees and retirees. At the start of 2009, the fund had 71.6 cents for every $1 it owes to current and future retirees, compared to 89.4 cents in January 2008, according to the Massachusetts Public Employee Retirement Administration Commission. The benefits employees and retirees have already earned are guaranteed, so they should not be affected by the investment losses. But the state could be forced to increase contributions to make up the shortfall, adding to the budget squeeze. Most public pension funds lost slightly less than Massachusetts’ fund, Travaglini said....All while looting legislators and state workers are double-dipping and robbing us blind.
In the last fiscal year, the fund stumbled because it had more than half of its money in stocks - foreign as well as US - and less in bonds than most other pension funds had....
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And what do you know, a week later they are MAKING MONEY again!
"Mass. pension fund grows in July; After historic decline last fiscal year, stocks help lift performance" by Todd Wallack, Globe Staff | August 6, 2009
After suffering a record decline last year, the state’s public pension fund is on the mend.
I've heard enough of these lies over the "recovery," folks.
The Pension Reserves Investment Management Board, which handles pension funds for hundreds of thousands of state and local employees, said that pension fund assets grew by $1.7 billion to $39.8 billion last month, a gain of about 4 percent.
“July was the best single month we’ve had in some time,’’ said Michael Travaglini, executive director of the state pension agency. The news comes a week after the state reported that the pension fund declined 23.6 percent for the fiscal year ended June 30 - or $12.8 billion - the biggest decline since the fund was created in 1985....
Smell something, readers?
This ought to calm down those angry pension recipients.
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The move also comes as some hedge funds have had spectacular meltdowns. For instance, Bernard L. Madoff’s multibillion-dollar hedge fund turned out to be a giant Ponzi scheme. The state lost $12 million in the Madoff scandal through one of its investments in another hedge fund, a “fund of funds’’ run by Austin Capital that in turn invested in other investment funds. The state fired Austin Capital Management in February....
Related: Your Madoff Minute
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