The California Public Employees Retirement System's one percent return is nowhere near its projection of 7.5 percent. It's even below the California State Teachers Retirement System, which earned a 1.8 percent 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.