The California Public Employees Retirement System performed far short of its investment target for the fiscal year that ended June 30th.

As Capital Public Radio's Ben Adler reports, the nation’s largest public pension fund announced a 1% return on investment Monday.
 

BEN ADLER: The California Public Employees Retirement System’s 1% return is nowhere near its projection of 7.5%. It’s even below the California State Teachers Retirement System, which earned a 1.8% return.

The dismal returns could impact everyone in California - not just public employees. That’s because when the retirement systems run out of money, it’s up to the state, cities, counties and school districts to make up the shortfall by increasing their contributions.

CalPERS is cautioning against overreacting to the news and says its ability to achieve long-term investment goals should not be judged by a single year’s performance.

For KQED News, I’m Ben Adler in Sacramento.