(The following is a reformatted version of a statement
issued by the California Public Employees’ Retirement System and
received via e-mail. The release was confirmed by the sender.) 
“As a successful long term investor with an average annual
return rate of 9% over the past 30 years, the California Public
Employees’ Retirement System is committed to working with the
City of Stockton and other public agencies during these
turbulent economic times.  Throughout the bankruptcy process,
CalPERS has provided information and other forms of assistance
to the City to assist its leaders in making difficult financial
choices.  CalPERS remains committed to protecting City’s pension
plan with the system and the pension benefits that are
constitutionally-protected rights of the City’s employees and
retirees, many of whom have spent their entire careers in public
service.  It is unfortunate that Assured Guaranty has publicly
criticized the bankruptcy process and forecast exclusion of the
City from the capital markets.  The obligations owed to the
public workers of the City have priority over those of general
unsecured creditors including bondholders.  Unlike insurance
companies, policemen, firefighters, and other public employees
are not in a position to evaluate credit risk of their
employers.  Assured Guaranty is in the business of evaluating
these risks.  CalPERS is committed to working within the legal
system to reach resolution of these difficult issues.” 
-          Peter Mixon, CalPERS General Counsel 
(sgp) NY 
Press spacebar to pause and continue. Press esc to stop.