The hits keep coming at the nation's largest pension. The latest news regards two hedge fund consultants who had been working for the fund for several years without a contract. This is a compliance lapse to be sure.

The outside advisors, according to the LA Times, were one called Paamco, apparently a play on PIMCO, and a unit of Swiss banking giant UBS. Kurt Silberstein, who oversees the nearly $6 billion CalPERS hedge fund portfolio, was suspended and made to give up 10 percent of his $222,249 annual salary for six months, the paper reported.

While troubling, this may actually rank fairly low on the list of other woes. The pay-to-play issues are much more troubling, as they involve politically connected middlemen, such as the former Los Angeles deputy mayor. But it reflects well on the pension that it uncovered the contract problem itself and took action. 

For more:
- here's the LA Times article 

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