CalPERS Saves $1B Through Efficiency, Reducing Waste, Health Benefits

The California Public Employees’ Retirement System saved nearly $1 billion in overall costs in 2010 by increasing efficiency and reducing duplication and waste, according to a staff report. Most of the savings – about $600 million – came from the health benefits program. Another $357 million was saved by the CalPERS investment office through reductions in management fees charged by investment partners and managers. The savings were detailed in a May 18 letter to Gov. Jerry Brown from CalPERS chief executive officer Anne Stausboll describing efforts by the pension fund to respond to the governor’s mandate that state agencies reduce waste and operate more efficiently. The pension fund cut costs by almost $963 million last year and has targeted $287 million worth of cost reductions for 2011, Stausboll said in the letter.

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