SACRAMENTO, Calif. (AP) — Two of the nation's two largest public pension funds are reporting investment returns of more than 18 percent for the fiscal year.
The Sacramento Bee reported (http://bit.ly/1sgna4M ) Monday that the California Public Employees Retirement System had earnings of 18.4 percent for the fiscal year that ended June 30. For the California State Teachers Retirement System, the return was nearly 18.7 percent.
The funds pay the retirement and health care benefits of public employees. Both have an annual target investment return of 7.5 percent.
In January, the state Department of Finance estimated almost $218 billion in total pension and retiree health care liabilities for CalPERS, CalSTRS, the University of California system and judges.
That's the amount the funds would need to fully fund all their promised financial commitments to retirees.