Abstract

This article focuses on the management of the pension fund of California. This $3 billion of California public pension funds constitutes 16 percent of all State and local government pension assets. Including assets arising from industrial retirement programs, these reserves now exceed $10 billion and are expected to double by 1970. Among the factor's making for this increase are the continued vigorous rate of population growth in California; the youthfulness of Western employee groups which will require many years before payments will equal receipts; demands for broader benefits requiring greater contributions; and, continuing inflation and rising wage scales which will require heavier contributions. The $10 billion of California pension funds is the aggregate of several distinct groups with differing origins and administration. These diverse institutional influences have resulted in differing portfolio policies. For example, State and local investment policies are not the same as those of industrial trusteed or insured plans.