Story perspectives

CalPERS Faces $330M Loss Amid Pension Funding Crisis

10/29/2025

33 6

Summary

Story summary

The California Public Employees’ Retirement System (CalPERS) lost 71 percent of a $468 million investment in the CalPERS Clean Energy & Technology Fund, exceeding $330 million in losses.
With only 79 percent of pension benefits funded, taxpayers face a $180 billion shortfall.
Public finance expert Marc Joffe criticized CalPERS for risky private equity investments, suggesting public equities could yield similar returns.
CalPERS spokesman Abram Arredondo attributed the loss to prior management and emphasized ongoing efforts to diversify investments and reduce fees.
Despite concerns, CalPERS claims private equity has been its best-performing asset class over the past 20 years.

1 of 1

Story summary

The California Public Employees’ Retirement System (CalPERS) lost 71 percent of a $468 million investment in the CalPERS Clean Energy & Technology Fund, exceeding $330 million in losses.
With only 79 percent of pension benefits funded, taxpayers face a $180 billion shortfall.
Public finance expert Marc Joffe criticized CalPERS for risky private equity investments, suggesting public equities could yield similar returns.
CalPERS spokesman Abram Arredondo attributed the loss to prior management and emphasized ongoing efforts to diversify investments and reduce fees.
Despite concerns, CalPERS claims private equity has been its best-performing asset class over the past 20 years.