SACRAMENTO, Calif. (AP) — The nation's largest public pension fund lowered its forecast Wednesday for investment returns and asked the state of California, school districts and local governments to increase contributions — a move that could siphon more money from basic services.
The California Public Employees' Retirement System voted to lower its projected annual return from 7.75 percent to 7.5 percent. The change will cost the state an extra $303 million a year, with about $167 million coming from the general fund.
It also bumps the overall annual state contribution to CalPERS to $3.8 billion, or about 4 percent of the overall general fund budget for the coming fiscal year.
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