CalPERS seals a banner year with a 14.8% return in 2025-26

CalPERS posted a 14.8% return for the 2025-26 fiscal year, well above its 6.8% target and pushing assets to about $637.1 billion. The funded status rose to 85% of liabilities, marking a milestone in its recovery from the Great Recession. Returns were driven by stock markets (roughly 24% private-equity gains and 24% stock gains vs. the S&P 500’s ~21% rise), and the fund’s total-portfolio approach aims for a 75/25 split between equities and bonds. The strong performance influences California budget considerations and ongoing debates about private-market transparency and pension reforms, including retirement benefits for police and firefighters.