CalPERS announces estimated 11.6% rate of return for retirement fund

The CalPERS building in Sacramento Photo courtesy of CalPERS The California Constituents Employees Retirement System CalPERS reported a preliminary assets return of for the - fiscal year The system has not yet circulated the financial record for the fiscal year that ended June but it did announce a preliminary net return rate The stake return would bring assets managed by the California Masses Employees Retirement Fund to an estimated value of billion three years after the fund hit its lowest level following the pandemic Almost all CalPERS retirement benefits are paid out of the retirement trust fund The fund provides benefits for the state of California school district and other employees of California residents agencies that are members Roughly two million Californians rely on it Following the pandemic the CalPERS retirement fund experienced its first net loss since The fund fared well amidst early-stage pandemic shutdowns and hardships but felt the aftershocks of the pandemic during the - fiscal year With a negative return rate of the fund sank billion that year It sat at billion for the - fiscal year and dropped to billion by June However and on have brought on a recovery Returns have increased every year and strengthened CalPERS funded status The funded status refers to the number of people the fund can cover if it had to pay out all its benefits at once At present the estimated funded status of the retirement fund sits at In just two years our stake returns have helped CalPERS increase the funded status to nearly and rebound from the economic effects of the pandemic noted Chief Executive Officer Marcie Frost in a press release Although there is more work to be done I am proud to say that CalPERS is delivering for its members and employers The funded status increased roughly eight percentage points in two years going from percent to Return rates also have increased year to year Fiscal year - s return rate was and the following year s return was California state treasurer Fiona Ma a member of CalPERS board expressed pride over the increased return rate but announced she ll also focus on what s next for the retirement system With global markets evolving and growing pressure on society systems we must continue to make smart forward-looking assets decisions I remain committed to working with the board and venture gang to strengthen retirement shield for our members and ensure the long-term sustainability of the fund she declared in a declaration The final numbers for the overview including the amount in the retirement fund and other return rates will be circulated later in the year after review from CalPERS staff and outside experts The description will include further detail on venture returns and return rates for constituents equity fixed income private equity and more