(AP) The board overseeing California's largest public pension fund has voted to lower its investments in risky funds as a cushion against economic downturns.
Wednesday's vote by the board of the California Public Employees' Retirement System will gradually lower the expected rate of return to 6.5 percent, over a 21-year period.
Gov. Jerry Brown blasted the move as "irresponsible." He says state and local governments and workers could be on the hook to make up the difference in returns if the CalPERS fund does not earn enough.
The Democratic governor says the new approach exposes the fund to an unacceptable level of risk.
The nearly $300 billion system far exceeded projections in 2014, posting an overall 18.4 percent return on investments last year.