The California Public Employees' Retirement System, or CalPERS, board said this week it prefers to switch its investment portfolio over to a less risky, lower yielding option, but said it would like to keep the discount rate used to offset future pension costs at 7.5 percent or higher.

CalPERS, one of the largest pensions in the country, took a $100 billion investment loss during the recession. The organization has spent the last two years trying to find a way to reach full funding of its pension plans in 30 years.

It lowered the discount rate from 7.75 percent to 7.5 percent in March last year, which triggered an employer rate increase. A second rate increase was approved in April.

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