SACRAMENTO, Calif. (AP) — The nation's largest public pension fund voted Wednesday to lower its estimate for annual investment returns, meaning it will need more money from the state, school districts and local governments to maintain its ability to fund promised retirement benefits.
The board of the California Public Employees' Retirement System voted to lower the fund's estimated rate of return from 7.75 percent to 7.5 percent.
Representatives of local agencies said they were concerned the move will further hurt their budgets at a time when many are facing deficits and have had years of cutbacks.
The move by the board will require an extra $303 million a year from the state, of which about $167 million would come from the general fund.
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