CalPERS barely earned any money at all during the fiscal year that ended June 30th. The nation’s largest public pension fund announced a one-percent return on investment today.
The California Public Employees Retirement System’s one percent return is nowhere near its projection of seven-and-a-half percent. It’s even below the California State Teachers Retirement System, which earned a one-point-eight percent return.
The dismal returns could impact everyone in California – not just public employees. That’s because when the retirement systems run out of money, it’s up to the state, cities, counties and school districts to make up the shortfall by increasing their contributions.
CalPERS is cautioning against overreacting to the news … and says its ability to achieve long-term investment goals should not be judged by a single year’s performance.