"Calpers may be paying a price for its decision to help financially strapped local California governments.
Moody's Investors Service slashed the triple-A rating of Calpers, formally known as the California Public Employees' Retirement System, by three notches to Aa3.
The downgrade, made Thursday, in part reflected Calpers' recent spike in unfunded liabilities, following the fund's negative 24% return for the year ended in June. Calpers, the nation's largest public fund with about $200 billion in assets, last month delayed its efforts to offset those liabilities by agreeing to defer an increase in local-government contributions to the fund from 2011 until 2012."
Moody's Investors Service slashed the triple-A rating of Calpers, formally known as the California Public Employees' Retirement System, by three notches to Aa3.
The downgrade, made Thursday, in part reflected Calpers' recent spike in unfunded liabilities, following the fund's negative 24% return for the year ended in June. Calpers, the nation's largest public fund with about $200 billion in assets, last month delayed its efforts to offset those liabilities by agreeing to defer an increase in local-government contributions to the fund from 2011 until 2012."