# CalPERS Funded Status Rises from 79% to 85%

> Research page on CalPERS by OctumAI. Researched and written by GAR, Octum's research engine, from the public sources below; every figure is checked against its source automatically; this version was reviewed by Octum. First published 2026-09-24, updated 2026-10-05. Canonical: https://octum.ai/research/investors/calpers.html

## The question

What is CalPERS's investment thesis: its size, returns and funded status, what it says it wants, what it has invested in and realized, who decides, and how the fund and the press describe it?

## GAR's answer

CalPERS funded status increased from 79% at the end of fiscal year 2024-25 to 85% as of June 30, 2026.

## What we found

### The numbers

CalPERS reported a return of 14.8% as of 2026. The funding status was recorded on 26 March 2026. Various funded status figures have been reported, including 100%, 75%, 80%, and 79%. As of 2024, the funded status was 79% and 73.9%. By June 30, 2026, the funded status reached 85%. At the end of fiscal year 2024-25, the funded status was 79%. The change in funded status from the end of fiscal year 2024-25 to June 30, 2026, was +6.0. Assets under management have been reported at $563 billion, $506.6 billion, and $637.1 billion as of 2024. Another report lists assets under management at $506.6. Investment returns have been cited at 11.6% and 6.8%. US-listed equity positions reported in its Form 13F-HR amounted to $177.4 billion USD as of 2026-06-30. [1] [2] [14] [15] [16] [19]

### What it realized

CalPERS reported returns of 14.8% as of July 13, 2026, according to www.calpers.ca.gov. Another source, www.influencewatch.org, lists the returns at 15%. [6] [17]

### The people

The CalPERS Investment Office employs a team of 300 people. Stephen Gilmore serves as the Chief Investment Officer as of 2024. Before joining CalPERS, Gilmore held the position of Chief Investment Officer for the government-owned New Zealand Superannuation Fund. Nicole Musicco also served as Chief Investment Officer as of 2023. Ronald Lagnado previously worked as a Senior Investment Director at CalPERS. Under Stephen Gilmore’s leadership, the organization has more than 300 team members. The size of the private equity team has varied over time. In 2009, the private equity team represented 12% of the total. By 2022, this figure was reported as 13% in one source and 24.1% in another. [3] [4] [5] [18]

### What the fund says

CalPERS serves 2.4 million members and beneficiaries. The fund reports an average monthly pension of $3,800. According to the fund’s own website, total assets stand at $500 billion. The funded status is reported as 79% as of June 30, 2025. Other sources cite different figures for total assets, including $315 billion, $625 billion, $300 billion, $260 billion, $160 billion, and $3.1 billion. Funding levels vary across reports, with figures of 84%, 71%, 101%, 61%, and 70% also appearing in the data. In terms of investment allocation, private equity accounts for 54% of the portfolio, while real assets represent 13%. The fund reports a private equity return of 14.3%. A separate metric indicates a CalPERS Pension Buck of 15%. [6] [8] [9] [10] [11] [12] [13]

| Metric (2026) | Value |
|---|---|
| total_assets | $625 billion [10] |
| total assets | $3.1 billion [6] |
| members_and_beneficiaries | 2.4 million [6] |

### What the press says

Press coverage of CalPERS highlights a mix of financial performance and operational scale. As of 2026, the fund reported a preliminary investment return of 14.8% and a health premium increase of 4.97%. The organization covers 2.4 million workers and serves 1.5 million health benefits members. However, reports indicate that CalPERS underperformance has placed the fund in the bottom 15 percent of all 230 U.S. public pension funds for five- and 10-year periods. Criticism also focuses on executive compensation and specific investment choices. Data shows executives making more than $1 million, with others earning between $500,000 and $900,000. The fund has invested $3.1 billion in around 300 Chinese companies. Historical context notes investment income of $17 billion in 1999 and $5 billion in 2003. Additionally, CalPERS engages in ESG activism by using proxy voting to influence shareholder decisions. [1] [6] [7]

| Metric (2026) | Value |
|---|---|
| health premium increase | 4.97% [1] |
| preliminary investment return | 14.8% [1] |
| covered workers | 2.4 million [6] |
| health benefits members | 1.5 million [6] |

## Where the sources disagree

- The reported total assets under management vary significantly depending on the source, with figures ranging from $160 billion to $500 billion, meaning you cannot rely on a single public number to gauge the scale of this investor's capital base. [12] [13]

## Analysis

CalPERS’s funded status is projected to improve from 79% to 85% by June 30, 2026, indicating a stronger financial position that may support continued or increased capital commitments to your fund. This positive trend in funding levels suggests the investor has greater capacity to absorb new allocations or maintain existing ones without immediate liquidity pressure. [16]

## Pros and cons for a GP raising capital from this investor

**Pros**

- Change in funded status from end of fiscal year 2024-25 to June 30, 2026: +6.0 percentage points (79% to 85%). [16]
- CalPERS delivered a 14.8% investment return in 2026, signaling strong performance that supports continued capital deployment and confidence in the fund's management. [1] [17]
- The fund’s funded status improved by 6.0 percentage points to 85% by June 30, 2026, indicating a strengthening financial position that may enhance its capacity to commit new capital. [16]
- With total assets of $500 billion, CalPERS is a major institutional investor whose scale offers GPs access to significant capital and long-term partnership opportunities. [12]
- CalPERS maintains a 54% allocation to private equity, reflecting a strategic commitment to alternative assets that creates substantial demand for new GP offerings. [9]
- The fund’s private equity team has grown to 24.1% of its investment staff by 2022, demonstrating an expanded internal capacity to evaluate and manage complex alternative investments. [18]

**Cons**

- CalPERS has underperformed its peers, placing in the bottom 15 percent of 230 U.S. public pension funds for both five- and 10-year periods, which signals a potential lack of alpha generation that a GP must overcome to secure allocation. [6]
- The fund’s funded status has fluctuated significantly, with figures ranging from 61% to 101% across different reporting periods, indicating volatility in its ability to meet long-term liabilities that may constrain new capital commitments. [12] [13] [14] [15] [16]
- CalPERS holds a concentrated position in Chinese companies, with investments totaling $3.1 billion across around 300 entities, exposing the fund to geopolitical and regulatory risks that may influence its risk appetite for similar emerging market exposures. [6]
- The fund’s investment income has declined sharply over time, dropping from $17 billion in 1999 to $5 billion in 2003, reflecting a historical trend of reduced yield that may impact its long-term funding stability and capital deployment capacity. [7]
- CalPERS has a high private equity allocation of 54%, which creates a concentration risk in illiquid assets that may limit its flexibility to respond to market downturns or liquidity needs. [9]

## Sources

1. California Public Employees' Retirement System — https://www.calpers.ca.gov/
2. https://www.calpers.ca.gov/documents/202605-full-agenda-item6a-00-a/download?inline — https://www.calpers.ca.gov/documents/202605-full-agenda-item6a-00-a/download?inline
3. Stephen Gilmore | CalPERS — https://www.calpers.ca.gov/about/organization/executive-officers/stephen-gilmore
4. CalPERS Chief Investment Officer Nicole Musicco to Exit Sept.29 | Markets Group — https://www.marketsgroup.org/news/musicco-quits-calpers
5. The Crucifixion of Ben Meng | Institutional Investor — https://www.institutionalinvestor.com/article/2bswzui4ynfc0xmc6ky68/corner-office/the-crucifixion-of-ben-meng
6. California Public Employees' Retirement System (CalPERS) - Influence Watch — https://www.influencewatch.org/government-agency/california-public-employees-retirement-system-calpers/
7. CalPERS - Wikipedia — https://en.wikipedia.org/wiki/CalPERS
8. A New Year’s Message from CalPERS CEO Marcie Frost - CalPERS PERSpective — https://news.calpers.ca.gov/a-new-years-message-from-calpers-ceo-marcie-frost/
9. CalPERS to Vote on Plan to Combine Portfolio Segments | Institutional Investor — https://www.institutionalinvestor.com/article/2bsvy6c1wdy0wjaaqf9j4/portfolio/calpers-to-vote-on-plan-to-combine-portfolio-segments
10. The End of the Silo: What CalPERS Going Live With TPA Means — https://www.alternativesoft.com/tpa-end-of-silo-2026.html
11. Following Engagement With New York City Pension Funds, CALPERS And CALSTRS, Bank Of Americ — https://comptroller.nyc.gov/newsroom/following-engagement-with-new-york-city-pension-funds-calpers-and-calstrs-bank-of-america-adopts-proxy-access/
12. https://www.calpers.ca.gov/documents/climate-related-financial-disclosure-2025/download?in — https://www.calpers.ca.gov/documents/climate-related-financial-disclosure-2025/download?inline
13. Calpensions | CalPERS, CalSTRS and other government pensions — https://calpensions.com/
14. What Is CalPERS’ Funded Status? A Look at Our Financial Health - CalPERS PERSpective — https://news.calpers.ca.gov/what-is-calpers-funded-status-a-look-at-our-financial-health
15. 7 Things to Know About Our Financial Report - CalPERS PERSpective — https://news.calpers.ca.gov/7-things-to-know-about-our-financial-report
16. CalPERS Posts 14.8% Preliminary Investment Return for Fiscal Year 2025-26 | CalPERS — https://www.calpers.ca.gov/newsroom/calpers-news/2026/calpers-posts-preliminary-investment-return-for-fiscal-year-2025-26
17. CalPERS News | CalPERS — https://www.calpers.ca.gov/newsroom/calpers-news
18. CalPERS’ Head of Private Equity Departs | Markets Group — https://www.marketsgroup.org/news/calpers-private-equity
19. 13f:tableValueTotal:13F-HR:2026-08-14 via sec-13f — https://www.sec.gov/Archives/edgar/data/919079/000091907926000011/primary_doc.xml