What it is:
CalPERS is the abbreviation for the California Public Employees' Retirement System. It is the nation's largest pension.
How it works (Example):
The state of California is one of the nation's largest economies. More than 1.6 million people there are employees of public institutions such as schools and local governments. Accordingly, these public employees receive a pension as part of their compensation. This pension, CalPERS, is funded by contributions from the employers and employees. To ensure that the money in stocks, bonds, venture capital, real estate and other assets.has enough to make pension payments when employees retire, it invests that
In 2012, CalPERS had about $234 billion invested and another $3 billion in.
Why it Matters:
As the largest pension equities and another 20% was in and other debt securities. Accordingly, it can make some very large trades and has a of influence in the . CalPERS can also be a source of capital for growing companies: It invested $34.2 billion in private in 2012., CalPERS invests billions. It must make these with its liabilities in mind; in other words, it must ensure that it always have the to pay out pension benefits to retirees. In 2012, approximately half of its portfolio was in