The California Public Employees Retirement System (CalPERS) is the largest public pension fund in the country. Public pension plans keep two sets of books. The accounting method reported to the public uses actuarial standards. The other method, not reported ever, uses market values. Any economist worthy of the title will tell you that market valuation is the correct way to value, well, just about anything. The scandal is what happens when a pension plan tries to leave CalPERS’s not-so-tender embrace. Continue Reading →