CalPERS, like other public pension funds, have fallen well short of their funding requirements. This has caused them to open up a little, in a way that is at least a start.
The California Public Employees’ Retirement System, known as CalPERS/Calpers, is the largest public pension fund in the United States, with $400 billion in assets. Like other public pension plans, they have a certain level of performance that they need to hit, 7% in their case, in order to sustain the plan and pay out amounts owing to pensioners in the plan.
In spite of the simply fabulous bull market that we have been in since 2009, where the S&P 500 has averaged a total return of 15% per year over this period, Calpers and other pension funds have not only failed to capture the additional gains that these heady times offered, they have actually fallen further behind their 7% goal.
Read more: https://www.marketreview.com/news/calpers-now-looking-to-borrow-to-better-drive-returns/