Editing CalPERS (section)

{{short description|California government agency which manages pensions for government workers}}
{{Use mdy dates|date=February 2025}}
{{Infobox government agency
| agency_name = Board of Administration of the Public Employees' Retirement System
| seal = 
| seal_width = 
| seal_caption = 
| logo = CalPERS logo.svg
| image = CalPERS headquarters.jpg
| image_caption = Headquarters at Lincoln Plaza in Sacramento
| formed = {{Start date and age|1932}}
| jurisdiction = 
| headquarters = [[Sacramento, California]]
| coordinates = {{coord|38.575|-121.505|type:landmark_region:US|display=inline,title}}
| employees = 2,843 (2024)<ref name="FY24-25">{{Cite web |url=https://www.calpers.ca.gov/docs/forms-publications/calpers-annual-budget-proposal-fiscal-year-2024-25.pdf |title=Fiscal Year 2024-25 Annual Budget Proposal |publisher=CalPERS |date=April 16, 2024 |access-date=May 30, 2024}}</ref>
| budget = {{US$|2.44 billion|link=yes}} (2024)<ref name="FY24-25" />
| chief1_name = Marcie Frost
| chief1_position = CEO
| chief2_name = Henry Jones <ref>{{cite web|title=Board Members - CalPERS|url=https://www.calpers.ca.gov/page/about/board/board-members|website=CalPERS Website|publisher=CalPERS|access-date=16 June 2021}}</ref>
| chief2_position = Board President
| chief3_name = Theresa Taylor
| chief3_position = Board Vice President
| chief4_position = 
| chief5_name = 
| chief5_position = 
| chief6_name = 
| chief6_position = 
| chief7_name = 
| chief7_position = 
| chief8_name = 
| chief8_position = 
| chief9_name = 
| chief9_position = 
| parent_department = 
| parent_agency = [[California Government Operations Agency]]
| website = {{URL|https://www.calpers.ca.gov/|calpers.ca.gov}}
| footnotes = 
}}

The '''California Public Employees' Retirement System''' ('''CalPERS''') is an agency in the [[California executive branch]] that "manages [[pension]] and health benefits for more than 1.5 million [[California]] public employees, retirees, and their families".<ref name=facts>{{cite web|title=Facts at a Glance for Fiscal Year 2021–22|url=https://www.calpers.ca.gov/docs/forms-publications/facts-about.pdf|website=CalPERS Website|publisher=CalPERS|access-date=16 April 2022|archive-date=21 April 2022|archive-url=https://web.archive.org/web/20220421065125/https://www.calpers.ca.gov/docs/forms-publications/facts-about.pdf |url-status=live}}</ref><ref name=FactsGeneral>CalPERS. [http://www.calpers.ca.gov/eip-docs/about/facts/general.pdf Facts at a glance: general.] {{webarchive|url=https://web.archive.org/web/20081027015440/https://www.calpers.ca.gov/eip-docs/about/facts/general.pdf |date=2008-10-27 }} January 2009. Retrieved December 24, 2008.</ref> In fiscal year 2020–21, CalPERS paid over $27.4&nbsp;billion in retirement benefits,<ref name=FactsRetire>CalPERS. [https://www.calpers.ca.gov/docs/forms-publications/facts-pension-retirement.pdf Facts at a Glance - Public Employees' Retirement Fund (PERF), 2020-21] CalPERS. 2021. {{webarchive|url=https://web.archive.org/web/20210623141535/https://www.calpers.ca.gov/docs/forms-publications/facts-pension-retirement.pdf |archive-date=June 23, 2021}}  Retrieved October 09, 2021.</ref> and over $9.74&nbsp;billion in health benefits.<ref name="FactsHealth">CalPERS. [https://www.calpers.ca.gov/docs/forms-publications/facts-health-benefits.pdf Facts at a Glance - Health Benefits, 2019-20] CalPERS. 2021. {{webarchive|url=https://web.archive.org/web/20210623141524/https://www.calpers.ca.gov/docs/forms-publications/facts-health-benefits.pdf|archive-date=June 23, 2021}} Retrieved October 09, 2021.</ref>

CalPERS manages the largest public [[pension fund]] in the United States, with more than $469 billion in assets under management as of June 30, 2021.<ref>{{Cite web|title=CalPERS Reports Preliminary 21.3% Investment Returns for Fiscal Year 2020-21; Strong Returns Trigger Reduction in Discount Rate to 6.8%|url=https://www.calpers.ca.gov/page/newsroom/calpers-news/2021/calpers-strong-preliminary-fiscal-year-investment-return-trigger-discount-rate-reduction|access-date=2021-10-09|website=CalPERS|language=en-us}}</ref> CalPERS is known for its [[Activist shareholder|shareholder activism]]; stocks placed on its "Focus List" may perform better than other stocks, which has given rise to the term "CalPERS effect".<ref name=Sidel>Sidel, Robin. "Calpers effect" may give lift to underperforming stocks. ''Wall Street Journal'', April 20, 2004.</ref> Outside the U.S., CalPERS has been called "a recognized global leader in the investment industry",<ref name=PhilippinesPresident>Republic of the Philippines, Office of the Press Secretary. [http://www.news.ops.gov.ph/archives2006/feb03.htm#PGMA%20welcomes PGMA welcomes CalPERS upgrade of RP investment rating.] {{Webarchive|url=https://web.archive.org/web/20081202050327/http://www.news.ops.gov.ph/archives2006/feb03.htm#PGMA%20welcomes |date=2008-12-02 }} February 3, 2006. Retrieved December 26, 2008.</ref> and "one of America's most powerful shareholder bodies".<ref>Griffiths, Katherine. [https://www.independent.co.uk/news/business/news/calpers-calls-for-heads-to-roll-at-citigroup-over-allegations-of-poor-corporate-governance-559933.html Calpers calls for heads to roll at Citigroup over allegations of poor corporate governance.] {{Webarchive|url=https://web.archive.org/web/20160303202516/http://www.independent.co.uk/news/business/news/calpers-calls-for-heads-to-roll-at-citigroup-over-allegations-of-poor-corporate-governance-559933.html |date=2016-03-03 }} April 14, 2004. Retrieved December 26, 2008.</ref>

As of 2018, the agency has $360 billion in assets, and is underfunded by an estimated $150 billion, with current assets below 70% of necessary to provide for liabilities.<ref name=SacBee_Pension_costs_1 >{{ cite news | url=http://www.sacbee.com/news/politics-government/the-state-worker/article198062129.html | title=Pension costs 'unsustainable,' California cities say | last=Ashton | first=Adam | publisher=The Sacramento Bee | date=2018-02-02 | access-date=2018-03-19 | archive-url=https://web.archive.org/web/20180208152430/http://www.sacbee.com/news/politics-government/the-state-worker/article198062129.html | archive-date=2018-02-08 | url-status=live | quote=<blockquote>But the system is underfunded overall. Its assets are worth about 68 percent of what it owes to retirees and public workers.</blockquote> }}</ref><ref name=MercNews_Calpers >{{ cite news | url=https://www.mercurynews.com/2017/12/18/borenstein-calpers-about-to-bury-taxpayers-cities-counties-in-more-debt/ | title=Borenstein: CalPERS about to bury taxpayers, cities, counties in more debt | last=Borenstein | first=Daniel | publisher=The San Jose Mercury Times | date=2017-12-18 | access-date=2018-03-19 | archive-url=https://web.archive.org/web/20180224213719/https://www.mercurynews.com/2017/12/18/borenstein-calpers-about-to-bury-taxpayers-cities-counties-in-more-debt/ | archive-date=2018-02-24 | url-status=live | quote=<blockquote>The California Public Employees’ Retirement System currently has a $153 billion unfunded liability, with only 68 percent of the assets it should have,...</blockquote> }}</ref> In an effort to reduce this shortfall, at the end of 2016 the board lowered their expected annual rate of return on investments from 7.5% to 7.0%, increasing the costs California cities must pay toward their workers' pensions.<ref name=Reuters_Calpers_lowers >{{ cite news | url=https://www.reuters.com/article/us-california-calpers/calpers-votes-to-lower-expected-investment-return-rate-to-7-percent-by-2020-idUSKBN14A2EE | title=CalPERS votes to lower expected investment return rate to 7 percent by 2020 | last=Carroll | first=Rory | publisher=Reuters | date=2016-12-21 | access-date=2018-03-19 | archive-url=https://web.archive.org/web/20180320051837/https://www.reuters.com/article/us-california-calpers/calpers-votes-to-lower-expected-investment-return-rate-to-7-percent-by-2020-idUSKBN14A2EE | archive-date=2018-03-20 | url-status=live | quote=<blockquote>The California Public Employees’ Retirement System board voted on Wednesday to lower the pension plan’s expected rate of return from investment to 7 percent by 2020, a decision that comes after the fund failed to meet its 7.5 percent target the past two years. The move by the country’s largest public pension fund will place a greater financial burden on the state’s cities, counties and other local government agencies across California that rely on CalPERS pensions. The $300 billion fund is currently 68 percent funded and recently became cash negative, meaning that it paid out more in benefits, approximately $19 billion last year, than it collected from workers’ contributions - about $14 billion.</blockquote> }}</ref>