President Obama continues to demonstrate Cluelessness on Personal Finance
Pension Envy: Who Has More—Obama or Romney?
Published: Wednesday, 17 Oct 2012 | 2:37 PM ET Text Size
By: Jeff Cox
CNBC.com Senior Writer
Retirement packages sparked one of a series of confrontations during the Tuesday debate between President Obama and Republican challenger Mitt Romney.
The exchange took place during a discussion of China policy, with the president accusing the former Massachusetts governor of hypocrisy when it came to tough talk against the nation that boasts the world’s second-largest economy.
Romney conceded that a blind trust that manages his money does have investments in China, but countered that he wasn’t alone.
“Mr. President, have you looked at your pension? Have you looked at your pension? Mr. President, have you looked at your pension?” Romney challenged.
In one of the debate’s lighter moments, Obama countered, “I don’t look at my pension. It’s not as big as yours so it doesn’t take as long. I don’t check it that often.”
The remarks sparked some audience laughter — and yet another Romney rebuke.
“Let me give you some advice: Look at your pension. You also have investments in Chinese companies, you also have investments outside the United States,” he said.
On that score, Romney is likely correct.
Many public pension funds have a diversified foreign investment portfolio that includes China. For instance, the California Public Employees Retirement System, or CalPERS, recently announced a $530 million investment in two real estate funds that target China.
Most other public pension funds have directed increasing allocations to emerging markets and alternative investment classes to generate returns and bridge exploding funding gaps.
As far as size?
From the standpoint of a public pension, Obama is well-heeled.
As president, he will receive $191,300 annually for life — win or lose in next month’s election — and receives a travel allotment as well as mailing privileges. Should Obama lose, his presidential pension kicks in immediately after leaving office.
