California’s pension systems need to continue reducing risk

Preliminary reports indicate the California Public Employees’ Retirement System (CalPERS) and California State Teachers’ Retirement System (CalSTRS)—the state’s two primary pension systems for public workers—underperformed their long-term investment return target in the recently completed fiscal year. While a single year of results itself is not cause for alarm, it does add to the growing signs that California’s public pensions are facing economic headwinds an