The red-hot financial markets have cooled in the past year, and California’s pension funds are paying the price.
CalSTRS said Friday it earned 4.8 percent profit on its investment portfolio in the just-ended fiscal year, its lowest gain in three years. The results fell short of the teachers’ pension fund’s target of 7.5 percent, and come as CalSTRS is still working to get back on its feet financially after the 2008 crash. CalSTRS earned 18.7 percent a year earlier.
The CalSTRS investment figures were released four days after CalPERS reported similarly weak results of 2.4 percent. The two pension funds’ difficult year could strengthen political arguments for those seeking a statewide ballot initiative to overhaul the public pension systems.
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