CalPERS Reassures Members After Plunge

The largest U.S. public pension fund reassured its members that the sharp drop in the U.S. stock market would not have a detrimental impact on its portfolio or on its ability to pay benefits to members. “Our members should not be concerned about the safety of their pensions. We account for periodic changes in the markets,” said Sheryl Pressler, chief investment officer of the California Public Employees’ Retirement System. CalPERS said its members could rest easy that Monday’s stock market sell-off, which saw the Dow slump 554 points, would not have a detrimental effect on its $122-billion portfolio or on its ability to pay benefits to members. The fund holds about $54.5 billion in U.S. stocks. The only impact the sell-off had on CalPERS was that the price of stocks just went down, and with CalPERS putting $8 million a day into the market, today “may well represent a good buying opportunity,” she said.