Nation’s largest public pension fund plagued by secrecy and underperformance, probe finds
An independent investigation has revealed significant issues within the California Public Employees' Retirement System, the largest public pension fund in the U.S. The report highlights chronic underperformance, secrecy, and conflicts of interest that could jeopardize the financial security of its 2.4 million members. CalPERS executives have disputed the findings, claiming improvements in performance and reduced fees in recent years.
- ▪The California Public Employees' Retirement System has been found to be in the bottom 15% of U.S. public pension funds for five- and ten-year performance periods.
- ▪Nine percent of the fund's assets are tied up in underperforming private equity partnerships, referred to as 'zombie funds'.
- ▪CalPERS executives earn excessive compensation despite the fund's poor performance, with several making over $1 million annually.
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EXCLUSIVEU.S. newsU.S. newsNation’s largest public pension fund plagued by secrecy and underperformance, probe findsThe independent report was commissioned by a nonprofit group that includes retirees who were concerned about the $630 billion California Public Employees’ Retirement System.Listen to this article with a free account00:0000:00The headquarters of the California Public Employees' Retirement System, or CalPERS, in Sacramento.Xavier Mascarenas / TNS via ShutterstockShareAdd NBC News to GoogleMay 22, 2026, 6:00 AM EDTBy Gretchen MorgensonAn independent investigation into the nation’s largest public pension, the California Public Employees’ Retirement System, concluded that its 2.4 million members are imperiled by secrecy, chronic underperformance, understated investment costs and…
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