California State Retirees (CSR) is pleased to report to our members that CalPERS has earned a preliminary net return of 11.6% on its investment portfolio for the fiscal year ending June 30. This performance has increased the total portfolio to $556.2 billion at a 79% funded level.
As the largest advocacy organization for retired California state employees, CSR is dedicated to protecting retiree pension and health benefits. CalPERS’ latest investment performance reflects a firm commitment to long-term retirement security—and a proven ability to deliver strong results through sound judgment and strategy.
“We applaud CalPERS for turning a sound investment strategy into positive outcomes,” CSR President Joe Reynoso said. “The mission of CSR is to protect the pension and health benefits of all retired state employees. Today’s news affirms our trust in CalPERS to make decisions that produce retirement security.”
Benefits for CSR Members
The 2024-25 returns provide greater confidence in the long-term sustainability of the fund. While these strong investment returns don’t increase your benefits or Cost of Living Adjustments (COLAs), which are defined by law and subject to CalPERS’ contractual obligations, they do show the current stability of the system for our current members.
The CalPERS investment portfolio is officially known as the Public Employees’ Retirement Fund (PERF). Pension benefits are funded by three sources: CalPERS-contracted employers, active employees, and investment returns generated by the PERF.
Key Players Behind the Performance
Driving the 2024-25 gains over the past year were private equity (+14.3%), public equity (+16.8%), and fixed income (+6.5%) strategies.
The rebound strategy was driven by CalPERS Chief Investment Officer Stephen Gilmore; focusing on “grit and discipline” over short-term volatility. CalPERS CEO Marcie Frost praised the approach, stating "The last two years show that our strategy is working”.
Putting It in Perspective
Here’s how the CalPERS fund has performed over the last five years. The funding level percentage measures the value of the portfolio to the total benefits owed to retirees and beneficiaries.
|
Fiscal Year
|
Portfolio Value
|
Funding Level
|
Investment Return
|
|
2024-25*
|
$556.2 billion
|
79%
|
11.6%
|
|
2023-24
|
$506.6 billion
|
75%
|
9.3%
|
|
2022-23
|
$449.3 billion
|
72.2%
|
5.8%
|
|
2021-22
|
$440.7 billion
|
72.7%
|
-6.1%
|
|
2020-21
|
$473.6 billion
|
80.9%
|
21.3%
|
*Results are preliminary; confirmed totals are to be announced in December.