Editing CalPERS (section)

===Governor Gray Davis===
In 1999, fund value reached $159.1 billion, requiring $159 million in state tax dollar contributions.<ref name=LAT918/> In 1999, the CalPERS board proposed a benefits expansion that would allow public employees to retire at age 55 and collect more than half their highest salary for life.<ref name=LAT918/> CalPERS predicted the benefits would require no increase in the State's contributions by projecting an average annual return of 8.25% over the next decade.<ref name=LAT918/> When Board member [[Phil Angelides]]’ aide questioned whether the stock market could grow that long, Board Chairman William Crist, a former union president, replied that they "could make all sorts of different assumptions and make predictions, but that’s really more than I think we can expect our staff to do."<ref name=LAT918/> CalPERS' chief actuary, objected, finding that it would be "fairly catastrophic" if the fund only grew at 4.4%.<ref name=LAT918/>

The benefits expansion bill, SB 400, passed with unanimous backing by [[California State Assembly]] Democrats and was signed into law by Governor [[Gray Davis]].<ref name=LAT918/> CalPERS then produced a video promoting the legislation with Chairman Crist promising greater benefits "without imposing any additional cost on the taxpayers" and the [[California State Employees Association]] president praising it as "the biggest thing since sliced bread".<ref name=LAT918/>

The next year the [[dot-com bubble]] burst, and CalPERS did not grow, instead losing value in the [[stock market downturn of 2002]].<ref name=LAT918/> In 2001–2002, CalPERS provided technical assistance for the [[Sarbanes-Oxley Act]] because it had sustained financial losses from the [[Enron]] and [[MCI Inc.|WorldCom]] bankruptcies.<ref name=CalPERSstory/> After the [[Great Recession]], in 2009 CalPERS investments lost 24%, dropping $67 billion in value.<ref name=LAT918/> Chairman Crist retired from the board and it was later revealed he had accepted more than $800,000 from a firm to ensure hundreds of millions of investment from CalPERS.<ref name=LAT918/>

In November 2005, CalPERS expanded its headquarters with the {{convert|560000|sqft|m2|adj=on}} "Lincoln Plaza East & West" buildings which cost $265 million.<ref>CalPERS. [http://www.calpers.ca.gov/index.jsp?bc=/about/hq-expansion/fast-facts/east-west.xml Lincoln Plaza East & West.] {{webarchive|url=https://web.archive.org/web/20081027061306/https://www.calpers.ca.gov/index.jsp?bc=%2Fabout%2Fhq-expansion%2Ffast-facts%2Feast-west.xml |date=2008-10-27 }} June 27, 2008. Retrieved November 3, 2008.</ref><ref name=Vellinga>Vellinga, Mary Lynne. CalPERS' new look - It opens a downtown headquarters that's light, airy and innovative. ''Sacramento Bee'', November 12, 2005.</ref> The architecture of the buildings, which received praise, includes an entry tower {{convert|90|ft|m}} high in a shape reminiscent of a tree which is made of steel covered with glass.<ref name=Vellinga/> The project was awarded a Gold [[Leadership in Energy and Environmental Design]] (LEED) rating.<ref>Boehland, Jessica. [http://www.zinio.com/express2?issue=203611402 Close to home: A headquarters consolidation more than fills its predecessor’s big shoes.] {{Webarchive|url=https://web.archive.org/web/20080603134239/http://www.zinio.com/express2?issue=203611402 |date=2008-06-03 }} ''GreenSource Magazine'', vol. 2, no. 2, April 2007, pages 78-83. Retrieved November 6, 2008.</ref>