Bloomberg News

California Teacher Pension Handed Out $1.79 Million in Bonuses

November 02, 2011

Oct. 28 (Bloomberg) -- The California State Teachers’ Retirement System, the second-largest U.S. public pension, increased staff bonuses 11 percent to $1.79 million after posting the biggest gain since 1986.

Calstrs, which earned 23 percent on investments in the year that ended in June, spread the rewards among 52 employees, according to a board report. The fund had assets of $146.6 billion on Aug. 31.

The teachers’ pension and its sister, the California Public Employees’ Retirement System, the biggest public pension, saw record returns led by gains in stocks and private equity. Calpers earned 21 percent, the best result in 14 years.

Calstr’s biggest bonuses went to Chief Executive Officer Jack Ehnes, who received $149,940, and Chief Investment Officer Christopher Ailman, who got $139,500, according to the report. Calstrs spokesman Ricardo Duran said the two weren’t available for comment.

The fund gained $29.85 billion in the fiscal year. “Of that amount, $1 billion was attributable to specific investment staff decisions on particular securities and investment managers during the fiscal year,” the report said.

The bonuses were calculated on a three-year average investment return, meaning that the awards trail overall gains in a boom year.

Calpers paid $4.4 million in bonuses during the year ended June 30, a 33 percent increase from a year earlier. Calpers had $222.4 billion in assets on Oct. 26, the system reported on its website.

--Editors: Pete Young, Ted Bunker

To contact the reporter on this story: James Nash in Sacramento, California at jnash24@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net


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