CREATED Jul. 12, 2012
SACRAMENTO, Calif. (AP) — California's teacher pension fund has earned a 1.8 percent return from investments this year, a rate that falls short of expectations and could add to the system's shortfall.
The chief investment officer of the California State Teachers' Retirement System reported the latest return rate during the board's meeting Thursday.
Christopher Ailman says the nation's second-largest public pension system earned 1.8 percent for the fiscal year that ended June 30.
That compares to a 7.5 percent expected return rate, which was lowered earlier this year from 7.75 percent.
Ailman says the low return will likely "generate attacks" from public pension critics. Gov. Jerry Brown and Democratic lawmakers have not been able to strike a deal on pension reform.
Ailman says the $150 billion fund did meet its 20-year target.