CalPERS board representative tells members pension fund remains intact amid market uncertainty

Yvonne Walker, a member of the California Public Employees' Retirement System board, told participants at a CalPERS virtual town hall that the pension fund remains able to pay retiree benefits despite recent economic uncertainty.

Walker said the fund is “a long term investor” and that CalPERS’ portfolio is diversified. She said the fund is “currently valued at more than $500 billion” and that the system requires “about $32 billion” annually to pay retiree pensions. “There’s ample funds to continue paying our benefits,” she said.

Why it matters: CalPERS is the pension system for many California public workers and retirees; statements from board representatives and staff about funding and liquidity inform members concerned by market volatility.

Walker described steps CalPERS staff have taken to monitor markets, saying the chief investment officer, CalPERS’ chief executive officer Marcy Frost and investment staff have been “on it” and actively watching developments. She acknowledged markets may experience downturns but said she did not expect any event that would “take CalPERS out.”

Walker also addressed members’ worries about political risk to benefits, saying a CalPERS defined‑benefit pension cannot be taken away by the president or governor. “Your CalPERS pension is a defined benefit that you have worked for, that you have earned,” she said.

Ending: Walker closed by reiterating confidence in staff oversight and monitoring and invited members to raise specific concerns during question periods and follow up via stakeholder relations.