Lawmaker calls for CalPERS audit

California Assemblyman Keith Richman, R-Granada Hills, is calling for an audit of the California Public Employees' Retirement System (CalPERS). Richman says he is alarmed over a $2 billion discrepancy in what a benefit increase is likely to cost state taxpayers.

Richman's bill requires the Bureau of State Audits to examine the practices of the California Public Employees Retirement System in an effort to determine whether the system is following the best policies and to learn what factors led to inaccurate projections.

The audit would also look at whether the system's policies are subject to political influence, whether its employees receive the proper training and whether its practices compare favorably to those of other pension systems.

"This is really to determine whether or not CalPERS is acting at the highest standards or not," Richman said.

Richman, who has been involved in pension reform efforts the past several years, is running for state treasurer. The treasurer has a seat on the CalPERS board.

The L.A. Daily News reports CalPERS officials blame the $2 billion difference on unexpected drops in the stock market.