California’s public pension plan was on the brink of collapse in early 2017, and a plan manager resigned after pleading guilty to tax fraud charges.
The $1,955 billion Calstrs plan was the biggest financial bailout California had ever seen.
The pension fund was supposed to pay the state $1 billion a month in payments to Caltrans for the privilege of providing buses, lights, water, sewer and power services, among other things.
But Calstrmst failed to deliver those services, and the state paid Caltrans $957 million in cash to cover its costs.
So Calstrst had to take a $1bn bailout, according to the Los Angeles Times.
On Wednesday, a jury found the former manager of Calstr’s pension fund guilty of making false statements to federal regulators, and sentencing will be announced.
Calstr and his attorney did not immediately respond to a request for comment.
After Calstr resigned, the California Public Employees’ Retirement System, the state’s pension system, paid Calstr a $10 million bonus, the Times reported.
Calstra has been in court since April with the state and other creditors, but his attorney told the paper that Calstr would not be making any payments, and that he has a “very strong legal position.”