CalPERS

Registry · Top 100 · Rank 13 · Public pension · United States (California) · Last researched 6 September 2026 (America/Toronto). Corrections: info@universalassetowners.com.

• Executive brief
• Speakable summary
• Mandate & ownership
• Scale & portfolio
• Governance & leadership
• Investment philosophy
• Climate / ESG / ethics
• Performance & reporting
• Controversies & debates
• Timeline
• Annex: FY 2024–25 returns & AUM series
• Annex: CIO letter fold
• Annex: Allocation & California investments
• Annex: Sustainable Investments & climate
• Annex: Transparency & membership
• FAQ
• Sources
• Official video
• Completeness note

Executive brief

CalPERS (California Public Employees’ Retirement System) is the largest defined-benefit public pension in the United States and a component unit of the State of California. It administers retirement and health security for California public employees and retirees and invests the Public Employees’ Retirement Fund (PERF) under Board of Administration oversight. Registry slug calpers; UAO Top 100 rank 13.

Latest dated PERF scale (prefer labelled series): Official Fund Level Performance ending market value US$556,252 million at 30 June 2025; 14 July 2025 preliminary newsroom figure approximately US$556.2 billion; Facts at a Glance / Transparency money-weighted market value of assets US$563.0 billion for FY 2024–25 (private-market valuations as of 31 March 2025, cash-adjusted). FY 2024–25 time-weighted net return 11.6% (Fund Level Perf 11.64%), beating the 6.8% discount rate and the PERF benchmark by about 1.7 percentage points. Estimated funded status 79% at 30 June 2025. Prefer USD as CalPERS publishes — no invented currency conversions.

Leadership verified on live Executive Officers (researched 6 September 2026): CEO Marcie Frost; Chief Investment Officer Stephen Gilmore (assumed July 2024; still listed as current CIO — do not treat local INST “moved” flags as overriding live official pages); Chief Operating Investment Officer Michael Cohen. Board President Theresa Taylor and Vice President David Miller were re-elected for 2026 on 20 January 2026. Agency scale per CEO bio: about 2,800 professionals; Investment Office team of more than 300 (CIO bio); membership about 2.4 million (Transparency).

Researchers care because CalPERS is a reference U.S. public pension for scale, disclosure density (annual investment report, Facts sheets, transparency report, fund-level performance), Sustainable Investments 2030 / US$100B Climate Action Plan progress, California-in-state investment reporting, and Board–Legislature benefit boundaries. Related UAO hubs: Registry, Top 100, sovereign & public capital.

Speakable summary

CalPERS is California’s public employees’ retirement system and the largest U.S. defined-benefit public pension. At 30 June 2025 the PERF ending market value in the Official Fund Level Performance report was about US$556.3 billion, with a FY 2024–25 time-weighted net return of 11.6 percent. Marcie Frost is CEO; Stephen Gilmore is Chief Investment Officer; Theresa Taylor is Board President for 2026.

Mandate & ownership

What CalPERS is: a California state public pension and health-benefits administrator and investor for public employees and retirees, organized as a component unit of the State of California. What it is not: it is not a retail mutual-fund complex open to the general public, not a sovereign wealth fund funded by commodity surpluses, and not a private endowment — its capital path is contributions, investment income, and related plan cash flows under public fiduciary law.

The Board of Administration’s published responsibilities include setting employer contribution rates, determining investment asset allocations, and providing actuarial valuations. The same board-members page states the Board does not have authority to add, change, or delete benefits without the concurrence of the Legislature — a hard boundary between fiduciary investment/administration and benefit design politics.

Climate and stewardship materials cite California Constitution Article XVI, Section 17 on Board authority and fiduciary duty (opened Climate Report / SB 964 response). CEO biography language frames the duty as maximizing long-term investment returns, identifying global opportunities, leveraging the fund’s strength to drive sustainable markets, and minimizing portfolio risk for California public employees.

About Our Organization As the nation's largest public pension fund, CalPERS ensures members' benefits and earned retirements are as enduring as the state they maintain. Our Organization Board of Administration The CalPERS Board of Administration consists of 13 members who are elected, appointed, or hold office ex officio.

The board composition is mandated by law and can only be changed by a majority of the registered voters in the state. Board of Administration Discover a Career at CalPERS We help individuals align their professional goals with their passions. Find out why people choose CalPERS and learn how to apply for your ideal job.

Learn How To Apply Doing Business With CalPERS CalPERS uses several competitive bidding processes to award contracts. Learn about bid opportunities, how to contract with us, and more. Doing Business With CalPERS Laws, Legislation & Regulations Learn about the laws, legislation, and regulations pertaining to CalPERS members, contracting employers, and the system.

Laws, Legislation & Regulations Regional Offices CalPERS Regional Offices are open for phone, video, and in-person appointments. Our team members can support you Monday through Friday from 8:00 a.m. at 888 CalPERS (or 888 -225-7377). Headquarters & Regional Offices Videos Your CalPERS Pension Video Length: 02:08 Explore Our Latest Videos

Marcie Frost Chief Executive Officer Marcie Frost joined CalPERS as chief executive officer (CEO) in October 2016. She is the ninth CEO and second woman to head America's largest public pension fund. CalPERS administers a defined benefit retirement system for more than 2 million California public sector workers and their families and is the nation's second-largest purchaser of health care benefits, covering more than 1.5 million lives.

As CEO, Marcie oversees the global investment portfolio, an experienced team of 2,800 professionals, and three lines of business for the fund: pensions, health benefits, and investments. CalPERS delivers on its fiduciary duty to California’s public employees by maximizing long-term investment returns, identifying global opportunities, leveraging the fund's strength to drive sustainable markets and minimizing the risk in its portfolio.

Under Marcie’s leadership, CalPERS has improved its funded status from 68.3 when she arrived to 79 percent at the end of fiscal year 2024-25. In November 2025, the board voted to make CalPERS the first major public pension fund in the United States to embrace the Total Portfolio approach, which gives the team more flexibility to pick investments based on their potential benefit to the entire portfolio.

The fund also integrated climate change risks into its investment decision making process across all asset classes and launched a $100 billion sustainable investment strategy designed to reduce the carbon emissions intensity of CalPERS’ investments by 50% by the end of 2030.

Source fold: board-members page; Marcie Frost official bio; Climate/SB964 fiduciary framing; About/boilerplate pages.

Scale & portfolio

Official PERF scale is published in U.S. dollars. The table below keeps distinct official series side by side so researchers do not conflate preliminary AUM, fund-level performance market value, and Facts money-weighted assets.

Fair-value mix (Facts Investments, US$ billions): Global Equity (Public) 225.7; Fixed Income 187.1; Private Equity 102.9; Real Assets 74.5; Short-term Investments 22.5; Private Debt 22.0. Current allocation weights: public equity 38.9%, fixed income 30.3%, private equity 17.7%, real assets 13.1%, private debt 3.8%, with total-fund financing at (6.1%). Interim policy targets as of 1 July 2025 are published on the same Facts sheet (e.g., public equity 40.4%, private equity 15.0%, real assets 15.0%).

Organisation scale: Transparency cites about 2.4 million / 2,385,177 retirement-plan members and 2,906 employers; health coverage for more than 1.5 million lives appears in CEO bio and newsroom boilerplate; CEO bio cites ~2,800 professionals across pensions, health, and investments; CIO bio cites an Investment Office team of more than 300.

Additional information can be found in the Annual Comprehensive Financial Report at www.calpers.ca.gov. Investments 2005–2025 Portfolio Market Value & Annual Return Investment returns power market value to new heights above $560 billion $563.0 bil Annual $477.3 bil investment return (%) 21.7% 11.6% $178.9 bil (24.0%) Investment portfolio at market value ($) 2005-06 2009-10 2014-15 2019-20 2024-25 Total Fund Total Fund Highlights (FY 2024–25) Investment Returns1 & Market Value of Assets2 Investment Market Value of FY Returns Assets (in billions) Total fund market value; 25% $563.0 bil 11.1% change from previous FY 2024-25 11.6% $563.0 2023-24 9.3% $506.6 15% 2022-23 5.8% $464.6 5% 2021-22 (6.1%) $439.4 -5% 2020-21 21.3% $477.3 Total fund annual investment -15% 11.6% rate of return 2019-20 4.7% $392.5 -25% 2018-19 6.7% $372.62021-22 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-142014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2022-23 2023-24 2024-25 2017-18 8.6% $354.0 The discount rate (assumed 2016-17 11.2% $326.5 investment rate of return) 6.8% — what CalPERS expects its 2015-16 0.6% $298.7 investments to earn on average 1 Time-weighted rates of return.

Reflects private equity and real assets valuations Continued » 2 2004–2024 Portfolio Market Value & Annual Return as of March 31, 2025 and are cash adjusted through June 30, 2025. Money-weighted market value of assets. Reflects private equity and real assets valuations as of March 31, 2025 and are cash adjusted through June 30, 2025.

The money-weighted investment rate of return was 12.3% as of June 30, 2025. Data only for the Public Employees' Retirement Fund (PERF) $506.6 bil Annual $477.3 bil for general 12-2025-1 21.7% Investments » p. 2 Total Fund (continued) Summary of Investments, Fair Value Current & Interim Asset Allocation (in billions) Current Interim Policy Target Asset Class Allocation Weight (as of July 1, 2025) Global Equity (Public Equity)3 $225.7 Global Equity (Public Equity)3 38.9% 40.4% Fixed Income 3 $187.1 Fixed Income 3 30.3% 29.1% Private Equity $102.9 Private Equity 17.7% 15.0% Real Assets $74.5 Real Assets 13.1% 15.0% Short-term Investments $22.5 Private Debt 3.8% 3.5% Private Debt $22.0 Total Fund 2.3% — Total Fund Financing (6.1%) (3.0%) California Investments California Investments (FY 2024–25) California Investments by Asset Class 4 (FY 2024–25) 85 +15H Asset Class Fair Value (in billions) Percentage Global Equity (Public Equity) 5 $48.3 21.4% 15.5% $87.7 billion Fixed Income Real Assets 7 6 $8.2 $18.0 4.4% 24.3% California investments as percentage of the Private Equity 7 $10.5 10.2% total fund Private Debt 7 $2.6 11.7% 44.3% change from previous FY Total California Investments $87.7 Sustainable Investing Climate-focused Investments CalPERS' Climate Action Plan (CAP) Progress (FY 2024–25) (FY 2024–25) CAP goal: $100 bil $59.7 bil Total of climate-focused To be allocated $47 bil $59.7 bil investments made toward the $100 billion by 2030 goal Allocated 2023 2025 2030 3 Global Equity and Income includes exposure from derivatives 6 Fixed income also includes a portion of MBS & ABS, which have significant and repo borrowing used for Total Fund Financing.

geographical exposure to CA & MHLP. 7 Real Assets, Private Equity, and Private Debt are as of March 31, 2025. Data only for the Public Employees' Retirement Fund (PERF) 12-2025-1

Official Fund Level Performance Produced by the Financial Office1 Since Inception 20-Yr 10-Yr 5-Yr 1-Yr FYTD As of June 30, 2025 Ending Market Value Excess Bench- Excess Bench- Excess Bench- Excess Bench- Excess Bench- Excess Funds Managed Inception Date (MM) Net Return Bench-mark bps Net Return mark bps Net Return mark bps Net Return mark bps Net Return mark bps Net Return mark bps 2 Public Employees' Retirement Fund 7/1/1988 556,252 8.23% - - 6.68% 7.13% (45) 7.15% 7.06% 9 8.02% 7.70% 32 11.64% 9.93% 171 11.64% 9.93% 171 Judges' Retirement Fund 7/1/1992 66 2.74% 2.59% 14 1.86% 1.69% 16 2.15% 1.98% 18 2.99% 2.76% 23 4.93% 4.68% 25 4.93% 4.68% 25 Judges' Retirement System II Fund 12/1/1996 2,968 6.75% 6.67% 8 6.50% 6.45% 6 6.75% 6.48% 27 7.53% 7.27% 26 11.70% 11.38% 32 11.70% 11.38% 32 Legislators' Retirement System Fund 7/1/1988 91 7.35% 7.34% 1 5.00% 4.88% 12 4.15% 4.02% 13 2.93% 2.89% 4 7.22% 7.19% 3 7.22% 7.19% 3 CEPPT Strategy 1 10/1/2019 235 5.35% 5.32% 3 - - - - - - 5.52% 5.42% 10 10.63% 10.56% 7 10.63% 10.56% 7 CEPPT Strategy 2 1/1/2020 77 2.80% 2.77% 3 - - - - - - 2.54% 2.50% 4 8.79% 8.68% 11 8.79% 8.68% 11 CERBT Strategy 1 6/1/2007 21,998 5.66% 5.30% 36 - - - 6.86% 6.57% 29 7.93% 7.73% 21 12.30% 11.97% 33 12.30% 11.97% 33 CERBT Strategy 2 10/1/2011 2,259 6.51% 6.29% 23 - - - 5.54% 5.31% 23 5.33% 5.19% 14 10.57% 10.33% 24 10.57% 10.33% 24 CERBT Strategy 3 1/1/2012 916 4.98% 4.75% 22 - - - 4.46% 4.28% 18 3.63% 3.54% 9 9.26% 9.08% 18 9.26% 9.08% 18 CalPERS Health Care Bond Fund 8/1/1997 77 3.55% 3.49% 6 3.27% 3.15% 13 1.63% 1.62% 1 -1.00% -0.99% (1) 4.80% 4.68% 12 4.80% 4.68% 12 Long-Term Care Fund 3/1/1996 4,660 5.72% 5.68% 5 4.66% 4.63% 3 4.20% 4.21% (0) 3.85% 3.84% 1 9.48% 10.10% (62) 9.48% 10.10% (62) CalPERS Target Income Fund 12/1/2008 194 5.50% 5.53% (2) - - - 4.46% 4.35% 12 4.54% 4.49% 5 9.56% 9.47% 8 9.56% 9.47% 8 CalPERS Target 2020 Fund 12/1/2008 175 7.06% 7.05% 1 - - - 5.12% 4.99% 13 6.06% 6.00% 6 10.14% 10.06% 8 10.14% 10.06% 8 CalPERS Target 2025 Fund 12/1/2008 245 8.02% 8.00% 3 - - - 6.20% 6.06% 14 7.81% 7.74% 7 11.53% 11.45% 9 11.53% 11.45% 9 CalPERS Target 2030 Fund 12/1/2008 307 8.93% 8.90% 3 - - - 7.01% 6.90% 11 9.44% 9.37% 8 12.76% 12.66% 10 12.76% 12.66% 10 CalPERS Target 2035 Fund 12/1/2008 231 9.77% 9.77% 0 - - - 7.93% 7.80% 13 11.14% 11.05% 9 13.99% 13.89% 11 13.99% 13.89% 11 CalPERS Target 2040 Fund 12/1/2008 219 10.46% 10.43% 3 - - - 8.82% 8.70% 13 12.70% 12.60% 10 15.37% 15.25% 12 15.37% 15.25% 12 CalPERS Target 2045 Fund 12/1/2008 143 10.71% 10.72% (1) - - - 9.27% 9.14% 13 13.08% 12.98% 11 16.06% 15.94% 12 16.06% 15.94% 12 CalPERS Target 2050 Fund 12/1/2008 92 10.77% 10.72% 5 - - - 9.27% 9.14% 13 13.08% 12.98% 11 16.07% 15.94% 12 16.07% 15.94% 12 CalPERS Target 2055 Fund 10/1/2013 39 8.82% 8.74% 8 - - - 9.27% 9.14% 13 13.08% 12.98% 11 16.06% 15.94% 12 16.06% 15.94% 12 CalPERS Target 2060 Fund 11/1/2018 16 11.46% 11.33% 12 - - - - - - 13.08% 12.98% 10 16.07% 15.94% 13 16.07% 15.94% 13 CalPERS Target 2065 Fund 12/1/2022 7 16.06% 15.94% 12 - - - - - - - - - 16.06% 15.94% 12 16.06% 15.94% 12 CalPERS SIP STIF Core 9/1/2010 121 1.49% 1.35% 14 - - - 2.18% 1.98% 21 3.00% 2.76% 24 4.93% 4.68% 25 4.93% 4.68% 25 CalPERS SIP US Short Term Bond Core 10/4/2013 42 1.63% 1.71% (8) - - - 1.78% 1.84% (6) 1.55% 1.58% (3) 5.95% 5.94% 1 5.95% 5.94% 1 CalPERS SIP US Bond Core 10/7/2013 54 2.02% 1.98% 4 - - - 1.78% 1.76% 2 -0.73% -0.73% (1) 6.10% 6.08% 3 6.10% 6.08% 3 CalPERS SIP Real Asset Core 10/8/2013 20 4.40% 4.40% (0) - - - 5.50% 5.49% 1 10.68% 10.74% (6) 11.13% 11.11% 2 11.13% 11.11% 2 CalPERS SIP Russell All Cap Core 10/7/2013 881 13.12% 13.09% 4 - - - 12.98% 12.95% 3 16.01% 15.94% 7 15.30% 15.28% 1 15.30% 15.28% 1 CalPERS SIP Global All Cap EX-US Core 10/7/2013 91 5.87% 5.67% 20 - - - 6.42% 6.18% 24 10.39% 10.20% 18 18.11% 17.83% 28 18.11% 17.83% 28 Terminated Agency Pool 7/1/2013 199 2.16% - - - - - 1.94% - - -2.40% - - 3.65% - - 3.65% - - 1 Official Performance is derived from the Accounting Book of Record (ABOR).

SSB maintains the accounting system. 2 Public Employees' Retirement Fund inception date (7/1/1988) pre-dates benchmark performance (4/30/1989).

Governance & leadership

Leadership caution: some local INST rows may flag CIO transitions. Live verification on 6 September 2026 against calpers.ca.gov executive officers still lists Stephen Gilmore as Chief Investment Officer and Marcie Frost as Chief Executive Officer. This profile presents Gilmore as current CIO on that basis. Predecessor Nicole Musicco departed before Gilmore’s July 2024 start (appointment news 2 April 2024) — historical context only.

Executive Officers page roster (titles only): CEO Marcie Frost; CIO Stephen Gilmore; Chief Operating Investment Officer Michael Cohen; Douglas Hoffner (Chief Operating Officer); Stephenson Loveson (Chief Information Officer); Kim Malm (Deputy Executive Officer, Customer Services & Support); Donald B. Moulds, Ph.D. (Chief Health Director); Michele Nix (Chief Financial Officer); Brad W. Pacheco (Deputy Executive Officer, Communications & Stakeholder Relations); Shari Slate (Chief Diversity, Equity & Inclusion Officer); Scott Terando (Chief Actuary); Michelle Tucker (Chief Human Resources Officer); Prashant Yerramalli (General Counsel).

Board of Administration (board-members page): President Theresa Taylor (State Member Representative); Vice President David Miller (All Member Representative); members including Malia M. Cohen (State Controller, ex officio), Michael Detoy, Monica Erickson (CalHR, ex officio), Troy Johnson, Fiona Ma (State Treasurer, ex officio), Lisa Middleton, Kevin Palkki, Ramon Rubalcava, Yvonne Walker, Mullissa Willette, and Dr. Gail Willis (State Personnel Board, ex officio). Composition: six elected members, three ex officio constitutional/agency officers, and appointed seats as described on the official page. On 20 January 2026 the Board re-elected Taylor (fourth one-year presidential term) and Miller (third VP term).

Stephen Gilmore Chief Investment Officer Stephen Gilmore serves as CalPERS' chief investment officer and assumed the role in July 2024. He leads the CalPERS Investment Office and is responsible for total fund investment strategies and business management. As chief investment officer, Gilmore oversees a team of more than 300 professionals and a portfolio valued at over $500 billion.

Stephen has earned global recognition as an investment leader during his 40-year career working in public and private financial institutions. Before joining CalPERS, he served for more than five years as chief investment officer of the government-owned New Zealand Superannuation Fund, a sovereign wealth fund.

The New Zealand fund was valued at $75 billion (NZD) when he left in mid-2024, nearly doubling in size under his watch. It achieved annual investment returns of more than 12% from 2013 to 2022 and was named the best performing sovereign investor globally over the preceding 10 years in 2023.

He was also chief investment strategist of the Future Fund, Australia’s sovereign wealth fund and oversaw portfolio strategy, portfolio overlays, investment risk and investment data and analytics. While in the private sector, Stephen held international positions with AIG Financial Products and Morgan Stanley.

He held positions as an economist and a resident representative in Tajikistan with the International Monetary Fund and at the Reserve Bank of New Zealand as a research officer. Stephen attended the University of Canterbury in Christchurch, New Zealand and earned a Bachelor of Commerce and a Master of Commerce in economics.

CalPERS Selects Stephen Gilmore as Chief Investment Officer April 2, 2024 SACRAMENTO, Calif. – The California Public Employees' Retirement System has selected Stephen Gilmore, a senior investment leader with extensive experience in public and private financial institutions and across cultures and geographies, as the pension fund's chief investment officer.

His appointment is expected to become effective in July. Gilmore, an internationally recognized investment leader whose career has spanned 40 years, comes to CalPERS after more than five years as the chief investment officer of the New Zealand Superannuation Fund (NZ Super Fund), a sovereign wealth fund owned by the New Zealand government and valued at more than $73 billion (NZD).

"Stephen has worked in very public roles during his career for organizations where transparency and resiliency are essential," said CalPERS Chief Executive Officer Marcie Frost. "He brings not only a wealth of investing knowledge to the job, but he also has the temperament to understand the needs of our members and public sector employers who depend on CalPERS to be a steady, long-term partner." As chief investment officer for NZ Super Fund since 2019, Gilmore has overseen the world's best-performing sovereign fund, with annual investment returns of more than 12% a year over the past decade.

"Stephen brings an unmatched knowledge of global investing and managing diverse and high-performing investment professionals," said CalPERS President Theresa Taylor. "We conducted an exhaustive, worldwide search for a deeply skilled leader to continue our mission of providing retirement benefits to California's public sector workers, and we are confident Stephen is the right person for the job." Gilmore was chief investment strategist of the Future Fund, Australia's sovereign wealth fund.

There, he oversaw efforts such as portfolio strategy, portfolio overlays, and investment risk. He has also held senior international positions with AIG Financial Products and Morgan Stanley, as well as assignments with the International Monetary Fund and the Reserve Bank of New Zealand.

Theresa Taylor and David Miller Re-Elected as CalPERS Board President, Vice President for 2026 January 20, 2026 Sacramento, Calif. – The CalPERS Board of Administration today re-elected Theresa Taylor as board president and David Miller as vice president. “I’m grateful to have the confidence of the board to continue leading CalPERS,” Taylor said.

“We have a solemn fiduciary duty to ensure members’ pensions and health benefits will be there for them, and I look forward to helping carry out the bold and innovative strategies we’ve worked so hard to establish on their behalf.” The president oversees the board's business, setting meeting schedules and agendas with input from other board members and the CalPERS executive team.

The president also makes appointments to board committees. Leadership elections are held in January every year. This is the fourth one-year term for Taylor as board president and the third one-year term for Miller as vice president. Taylor was first elected to the Board of Administration in 2015, representing state employee members.

She is newly retired after more than 30 years of service to the State, most recently with the Franchise Tax Board, where she served as a principal compliance representative. She previously served as vice president/secretary-treasurer for the Service Employees International Union (SEIU) Local 1000 and on the executive boards of SEIU Local 1000 and the SEIU State Council.

Board Members The board's responsibilities include setting employer contribution rates, determining investment asset allocations, providing actuarial valuations, and much more. However, the board does not have the authority to add, change, or delete benefits without the concurrence of the Legislature.

Theresa Taylor President, State Member Representative David Miller Vice President, All Member Representative Malia M. Cohen Ex Officio Member, California State Controller Michael Detoy Governor Appointee, Local Government Elected Official Monica Erickson Ex Officio Member, California Department of Human Resources Troy Johnson All Member Representative Fiona Ma Ex Officio Member, California State Treasurer Lisa Middleton Governor Appointee, Insurance Industry Representative Kevin Palkki School Member Representative Ramon Rubalcava Public Representative, Appointed Jointly by the Senate Rules Committee and Speaker of the Assembly Yvonne Walker Retired Member Representative Mullissa Willette Public Agency Member Representative Dr.

Gail Willis Ex Officio Member, State Personnel Board Representative Composition of the Board The board is made up of: Six Elected Members Two elected by and from all CalPERS members One elected by and from all active state members One elected by and from all active CalPERS school members One elected by and from all active CalPERS public agency members (employed by contracting public agencies) One elected by and from retired members of CalPERS Three Appointed Members Two appointed by the Governor - an elected official of a local government and an official of a life insurer One public representative appointed jointly by the Speaker of the Assembly and the Senate Rules Committee Four Ex Officio Members The State Treasurer The State Controller The Director of the California Department of Human Resources A Representative of the State Personnel Board Board Member Designees For Fiona Ma Patrick Henning For Malia M.

Cohen Deborah Gallegos For Monica Erickson Nicole Griffith Board of Administration Board Committees Board Elections Board Meetings Board Members Governance & Policies Precedential Board Decisions, Appeals & Hearings Resources Executive Officers Organization Transparency & Accountability

Executive Officers Our executive staff are committed to administering the direction set by the CalPERS Board and are responsible for day-to-day operations. Marcie Frost Chief Executive Officer Stephen Gilmore Chief Investment Officer Michael Cohen Chief Operating Investment Officer Douglas Hoffner Chief Operating Officer Stephenson Loveson Chief Information Officer Kim Malm Deputy Executive Officer, Customer Services & Support Donald B.

Chief Health Director Michele Nix Chief Financial Officer Brad W. Pacheco Deputy Executive Officer, Communications & Stakeholder Relations Shari Slate Chief Diversity, Equity & Inclusion Officer Scott Terando Chief Actuary Michelle Tucker Chief Human Resources Officer Prashant Yerramalli General Counsel Our Organization Benefits Overview CalPERS Story Diversity, Equity & Inclusion (DEI) Divisions & Offices Executive Officers Facts at a Glance Strategic & Business Plans Transparency & Accountability Resources Board Members Organization Transparency & Accountability

Source fold: executive-officers HTML; Stephen Gilmore bio; Marcie Frost bio; 2 Apr 2024 CIO appointment news; 20 Jan 2026 board officer news; board-members roster.

Investment philosophy

CalPERS Investment Office language (CIO letter 19 November 2025) emphasises leveraging size and brand, a long investment horizon, and staff skill to generate returns for members after a FY 2024–25 net return of 11.6%. CEO biography states that in November 2025 the Board voted to make CalPERS the first major U.S. public pension fund to embrace a Total Portfolio approach, described as giving the team more flexibility to select investments based on potential benefit to the entire portfolio.

Private equity strategy overhaul in 2022 (more co-investments) is credited in the preliminary FY 2024–25 release for strong private equity results and fee reduction. Asset-allocation policy is Board-set; Facts publish both current weights and interim policy targets as of 1 July 2025. Discount-rate / Funding Risk Mitigation Policy context appears in the preliminary release (Board option to lower the discount rate when returns exceed 6.8%).

Investment Section CHIEF INVESTMENT OFFICER’S LETTER improved returns. The team is being empowered to be more November 19, 2025 innovative and we are leveraging those advantages. The Investment Office also made headway on several I am pleased to report on the performance of CalPERS’ initiatives that will contribute to the PERF’s growth.

investments and the operations and initiatives of the Investment One such initiative is the $100 Billion Climate Action Plan, Office for the one-year period that ended June 30, 2025. launched in 2023 as part of our Sustainable Investments 2030 The PERF earned a time-weighted net rate of return of Strategy.

The plan commits CalPERS to investing $100 billion in 11.6 percent, exceeding the discount rate by nearly five climate solutions by the end of 2030, building on an initial percentage points. The ending fair value of investments for the baseline exposure of approximately $47 billion.

The plan is 2024-25 fiscal year was $634.6 billion and the overall funded designed to capitalize on the investment opportunities presented status of the PERF rose from 73.9 percent as of June 30, 2024 by the global transition toward a low-carbon economy while to 79 percent for June 30, 2025.

strengthening our portfolio against the economic and physical The return also surpassed the benchmark used to gauge the effects posed by climate change. PERF’s performance by 1.7 percentage points. In November 2024, CalPERS reported that its climate solution The return is impressive considering the severe market investments had reached $50.1 billion.

This total included downturn that occurred in the wake of the tariff-related contributions from a custom climate-oriented index launched uncertainty earlier in the year. earlier in the year with an initial $5 billion investment. The index, The favorable one-year performance lifted the total PERF five- referred to as “Climate Transition Index”, aims to deliver returns year and 10-year annualized rates of return to 8 percent and comparable to CalPERS’ passive global equity cap-weighted 7.1 percent, respectively.

The 20-year period stands at index, while enhancing exposure to climate solutions and 6.7 percent, and the 30-year period stands at 7.6 percent. CalPERS will report its updated In Fiscal Year 2024-25, public equity investments, which climate solutions exposure in November 2025.

comprised approximately 39 percent of the fund, outperformed Our ability to attract and retain talented employees all other asset classes with an estimated 16.8 percent return. empowered by quality technology solutions is essential. We This return exceeded its benchmark by 45 basis points, made good progress in these areas as well.

About the Investment Office Investment & Financial Reports Find out more: Access a wide selection of investment related CalPERS reports. Investment & Financial Reports Investment Office Senior Team Meet our senior team responsible for the investment and management of CalPERS assets and programs.

Investment Office Senior Team Investment Organization The Investment Office manages CalPERS assets by investing in a diverse portfolio of stocks, bonds, real estate, private equity, and other public and private assets. Investment Organization Policies Learn more about the policies guiding CalPERS investments, approved by the CalPERS Investment Committee, and implemented by Investment Office team members.

Policies Contact Us CalPERS Investment Office 400 Q Street Suite LPE 4800 Sacramento, CA 95811 Phone: (916) 795-3400

Source fold: AIR CIO letter (19 Nov 2025); Frost bio Total Portfolio note; preliminary return asset-class commentary; Facts allocation targets.

Climate / ESG / ethics

Sustainable Investments 2030 and the US$100 Billion Climate Action Plan (net-zero page) target climate solutions across mitigation, adaptation, and transition, aiming to more than double 2023 baseline exposure (~US$47B) by end-2030, while seeking to halve portfolio carbon intensity by 2030 and support a pathway toward net zero by 2050. Official framing stresses fiduciary alignment and opportunity capture rather than passive blanket divestment alone; SI materials also describe processes, subject to fiduciary duty and investment analysis, regarding companies without credible net-zero plans.

FY 2024–25 progress: Facts cite US$59.7B climate-focused investments toward the US$100B goal; the 17 November 2025 Sustainable Investments Annual Program Review cites about US$60B, an 11% year-over-year decline in portfolio emissions intensity, and allocations of US$7.3B to diverse managers and US$2.2B to emerging managers during FY 2024–25, alongside SI team build-out (8 to 18 staff since 2023).

CalPERS $100 Billion Climate Action Plan A plan to capitalize on new opportunities created by the move to a low-carbon economy Capital for Change One of the World's Biggest Commitments to Climate Solutions CalPERS will target at least $100 billion in climate solutions, more than double our exposure as of 2023, funding progress through mitigation, adaptation, and transition.

Incredible Opportunity Investing in the Energy Transition Provides Returns for Our Members The transition is the largest economic revolution of our time. It is a major opportunity, with global investors spending $1.8 trillion on energy transition technologies in 2023.

1 Reducing Risk Making Our Portfolio & Planet More Resilient Investing in change across all asset classes will halve the carbon intensity of CalPERS' portfolio by 2030 and cut the risk that climate change poses to the pension fund. Potential Investments Mitigation Renewable energy: Solar, wind, hydro, and other renewable sources Technologies that capture and store CO2 emissions Waste management: Reducing, recycling, reusing, and capturing methane from landfills Adaptation Water management: Systems addressing droughts, floods, and ensuring water supply Agricultural adaptation: Techniques like drought-resistant crops Disaster risk reduction: Early warning systems and community preparedness Transition Climate-friendly operations: Alternative materials in cement production and energy efficiency and carbon capture for cement plants Developing sustainable fuels: Aviation fuels from renewable sources and electric or hydrogen-powered aircraft for shorter routes Low-carbon sources: Moving to wind, solar and hydroelectric power, retrofitting fossil fuel power plants, and exploring advanced nuclear CalPERS' Climate Action Milestones 2008 Integrated environmental and social factors into our governance agenda 2013 Adopted investment beliefs highlighting climate change in long-term value and risk mitigation 2015 Supported Task Force on Climate-Related Financial Disclosures (TCFD) 2016 Convened and co-founded Climate Action 100+ 2018 Signed Global Investor Statement to Governments on Climate Change 2019 Founding member of United Nations' Net Zero Asset Owner Alliance 2021 Co-founded ESG Data Convergence Initiative 2023 Launched $100 Billion Climate Action Plan 2024 CalPERS COIO Michael Cohen named Climate Action 100+ steering committee chair 2025 Reached $60 billion in climate solutions investments Released the CalPERS’ Climate Report and Response to Senate Bill 964 News Releases CalPERS Investments in Climate Solutions Near $60 Billion Reports CalPERS’ Climate Report and Response to Senate Bill 964 (PDF) CalPERS Sustainable Investments 2030 Strategy (PDF) Other Resources CalPERS $100 Billion Climate Action Plan (PDF) CalPERS $100 Billion Climate Action Plan (Video) Climate Solutions Fact Sheet (PDF) Footnotes Bloomberg, Global Clean Energy Investment Jumps 17%, Hits $1.8 Trillion in 2023 - January 30, 2024 ( 1 )

Sustainable Investments Annual Program Review Peter Cashion Nelson Da Conceicao Travis Antoniono Managing Investment Director Investment Director Investment Director Fanny de Charbonniere Miguel Silva Investment Committee Investment Director Associate Investment November 17, 2025 Manager stainable Investments November 17, 2025 iness Updates and Key Performance Indicators Appendix Performance • $60 billion1 in climate solutions investments • Portfolio emissions intensity 11% lower YoY with slight decrease in absolute emissions • Allocated $7.3 billion to diverse managers and $2.2 billion to emerging managers1&2 during FY 24-25 – People • Human Capital Management: Implementation of Labor Principles, Responsible Contractor Program (RCP) Policy refresh complete, Lenox Park DEI survey complete • SI team build-out: SI team build out essentially completed (8 to 18 staff since 2023) – Process • ESG: o Development of private markets ESG integration roadmap o Labor Principles Scoring Framework applicable to public markets • Regulatory advocacy, corporate engagement, CA100+, EDCI and other partnerships • CalPERS Climate Strategy Report • Stakeholder engagements 1 As of June 30th, 2025; Total does not include committed uncalled capital.

2 Figures are not mutually exclusive due to the overlap between diverse and emerging characteristics. nts brief...) Lot happening in the global climate market this year… Let’s distill it down into 4 points: 1. Climate as a mega trend: Despite US climate policy headwinds, climate remains very much a mega trend alongside AI and de-globalization.

'Climate' will play out over the coming years AND decades to come. Climate solutions can be faster, cheaper, more efficient. Climate Risk is real and escalating – Adaptation investment needed. Global climate market: All systems go. Climate transition is accelerating from India, to China to the EU 3.

US climate market – more nuanced. 2 opposing forces: (i) policy changes → partial headwind versus (ii) economics & necessity. Energy Supply & Demand factors will be key drivers -Policy detractors: Offshore wind, EVs, building electrification, tariffs -Policy winners: Nuclear, grid improvements, carbon capture, geothermal 4.

Implications for CalPERS, where we are, and where we are going on tes a challenge statement into a value-add solution for the portfolio Take on a Generate Ideas Asset Class + SI Challenge Statement SI develops solutions to Refine Through Collaboration SI Risk – OR – Opportunity challenges Ideas evolve through rigorous discussion, debate, creativity and • How to manage and monitor commitment to solution labor related issues • How to invest profitably in • Engage in open debate, creative climate tension, and shared commitment • How to mitigate ESG risks • Facilitated by INVO culture Execute Validate Ultimate Target: Add Implement and report Test feasibility and Value to the Portfolio outcomes alignment oration with the Asset Classes through debate, discussions, creativity and finally, commitment to solution.

Total Fund Private Sustainable Public Markets Investments Markets SI provides support and expertise across a variety of sustainability areas: • Stakeholder engagement • Stewardship support • Emerging Manager • Advocacy • Sustainability reporting • ESG integration and • Partnerships • Human capital climate risk assessment • Sustainability networks • Climate investing rategy | Objectives 1 Generate outperformance by investing in climate solutions and emerging and diverse managers 2 Increase portfolio resilience by fully integrating ESG analysis, including climate risk analysis 3 Implement a thoughtful path to Net Zero through investments, engagement and advocacy 4 Promote greater inclusion and representation in the financial industry and the global economy 5 Build and promote efficient and equitable financial markets through advocacy and regulatory action tive KPI Target Status Sustainable Investments performance relative to asset 1 Generate Outperformance class benchmarks Outperformance in each asset class In progress Periodic Total Fund climate risk reporting At least annually ✓ 2 Increase Portfolio Resilience Proportion of investments with ESG analysis integrated in diligence process 100% of new investments ✓ Investments in Climate Solutions $100B by 2030 In progress 3 Pathway to Net Zero by 2050 Monitor and report carbon footprint and emissions intensity by asset class At least annually (subject to data availability) ✓ Cumulative investments with diverse and/or emerging managers Provide yearly update ✓ Promote Inclusion and 4 Representation Completion of DEI external manager survey Provide yearly update ✓ Percentage of diverse public corporate board directors Provide yearly update ✓ Compliance with Responsible Contractor Program (RCP) Policy 100% compliance for annual report ✓ Improve Financial Markets 5 Efficiency Percentage of Global Public Equity engaged annually Engage 50% of GPE AUM ✓ Proxy voting and corporate engagements update Provide yearly update ✓ ce through investments in Climate Solutions and Emerging Managers • Generating out-performance entails investment origination, asset tracking and performance measurement • Origination: In addition to allocating to a Public Equities climate index, over $7 billion has been committed to climate- dedicated private funds since November 2023 • Tracking: SI collaborates with all asset classes to tag climate investments across climate dedicated climate active strategies, generalist funds and co-investments • Performance Measurement: ‒ Publics: Yes – performance can be measured from the start ‒ Privates: Not yet – early-stage performance data for private investments does not provide meaningful information because of J-curve effects.

Performance for privates will be reported after multiple years, consistent with current practice ‒ Emerging Managers’ performance has been tracked for years1, with recent results in Private Equity showing outperformance in contrast with historical underperformance 1 Mosaic is in the initial stages of its investment life cycle.

Any performance analysis done on these funds would not generate meaningful results as private equity funds are understood to be long-term investments. Index (CTI) • CTI assets grew from $5 billion to $5.8 billion in FY 24-25, performing in line with the cap-weighted index despite policy headwinds in the U.S.

Agenda Item 6c, Attachment 2, 1 of 64 CalPERS’ Climate Report and Response to Senate Bill 964 November 2025 Agenda Item 6c, Attachment 2, 2 of 64 Table of Contents Introduction . 7 The Role of the CalPERS Board of Administration . 35 Transition and Physical Climate-Related Financial Risks .

35 Analysis of Alignment with the Paris Agreement . 60 Note: Due to rounding, some figures found in this report may not precisely add up to the associated totals. CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 2 Agenda Item 6c, Attachment 2, 3 of 64 Introduction This report by the California Public Employees’ Retirement System (CalPERS) responds to California Senate Bill (SB) 964 and references the International Financial Reporting Standards Foundation (IFRS) S2 Climate-related Disclosures issued by the International Sustainability Standards Board (ISSB).

Climate change poses a threat to the CalPERS portfolio and jeopardizes our mission to deliver retirement and health benefits to our 2 3 million members and beneficiaries Addressing climate change effectively requires $32.8 bil foresight, collaboration, and a steadfast commitment to evidence-based Total Pension Payments decision-making for FY 2023–24 We manage a significant trust fund with more than $500 billion in assets, delivering approximately $32 billion in pension payments annually Our ability to meet these long-term obligations hinges on strong investment returns Over the past 20 years, around 55 cents of every pension dollar paid comes 79% from investment earnings With an estimated funded status of approximately Funded Status 79% as of June 30, 2025, and a target investment return of 6 8%, managing as of June 30, 2025 climate-related risks and seizing climate transition opportunities is not just prudent, it is essential to our financial sustainability Climate change presents multifaceted risks to CalPERS’ fund and assets Physical risks – such as rising sea levels, extreme weather events, drought, 6.8% and wildfires – pose increasing threats to infrastructure, supply chains, and Targeted Investment Return for FY 2024-25 property values globally Simultaneously, the accelerating global shift toward a low-carbon economy creates significant transition risks 1 Companies face pressure to adapt their strategies and operations, but those leading the transition can be rewarded Furthermore, companies face growing litigation risks related to climate impacts and disclosures These risks unfold against a complex backdrop of political shifts, evolving energy markets, and persistent economic pressures As long-term investors entrusted with an absolute fiduciary duty to our members, CalPERS cannot ignore the profound implications of climate change The consequences of inaction would reverberate throughout the global economy, impacting workers, communities, and the very companies generating the returns funding member benefits Governmental analyses report that climate change contributes to instability and acts as a threat multiplier, jeopardizing food, water, and economic security CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 3 Agenda Item 6c, Attachment 2, 4 of 64 However, this transition also unlocks immense investment opportunities Capturing these opportunities is as critical as mitigating the risks CalPERS tackles this complex landscape through a strategic, four-pillar approach, as shown in Figure 1 below Figure 1: Four-Pillar Approach Integration & Advocacy Engagement Investment Partnership Source: CalPERS 1 Integration and investment: We embed climate change risk and opportunity analysis into our investment decision-making processes across all asset classes, with a target of $100 billion invested in climate solutions by the end of 2030 By investing in mitigation, adaptation, and transition climate solutions, we aim to take advantage of the opportunities that will be presented from climate change and the transition to a lower-carbon economy This approach should provide better financial outcomes for the pension system This should also have a secondary effect of reducing the emissions intensity of our portfolio and further aligning it onto a net zero pathway by 2050 2 Engagement: We work with portfolio companies to navigate the carbon transi- tion and to enhance climate resilience 3 Advocacy: We support policies and regulations that facilitate an orderly and just transition to a low-carbon economy 4 Partnership: We collaborate with fellow investors and global initiatives, such as Climate Action 100+, to amplify our impact We recognize that climate data, methodologies, and reporting are rapidly evolving This report reflects our findings based on the most current available information CalPERS is a strong advocate for mandatory, standardized climate risk disclosure globally, supporting best-practice frameworks in the interim CalPERS’ ability to accurately assess climate risks and opportunities and allocate capital effectively will improve as corporate transparency improves Successfully navigating the climate transition requires a concerted effort from the entire financial market, working in partnership with governments, businesses, and civil society to address this defining challenge of our time CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 4 Agenda Item 6c, Attachment 2, 5 of 64 CalPERS’ Climate-Related Accomplishments In November 2023, CalPERS announced plans to more than double its climate solutions investments from a $47 billion baseline to $100 billion by the end of 2030 Climate investments were estimated at approximately $60 billion by the end of fiscal year 2025, spanning mitigation, adaptation, and transition categories as defined in the CalPERS climate solutions taxonomy In July 2024, CalPERS also announced a commitment of $5 billion in public equity investments to the FTSE Climate Transition Index, a customized index of companies with credible plans to participate in the energy transition and reduce their climate- related risks We seek to deliver cap-weighted, index-like returns while significantly increasing exposure to climate solutions and decreasing the emissions intensity of the overall index Figure 2: CalPERS' $100 Billion Climate Action Plan Progress goal: $100 bil $5 bil FTSE Climate Transition Index allocation $59.7 bil To be allocated $47 bil Allocated 447 Public company 2023 2025 2030 engagements conducted Source: CalPERS CalPERS advocates for climate-related policy to help generate outperformance and increase portfolio resilience This includes advocating for climate-related risk disclo- sure from portfolio companies and for initiatives that mitigate climate-related risks to the human capital across our portfolio companies For example, we have backed an Occupational Safety and Health Administration (OSHA) proposed rule to evaluate and promote heat injury and illness prevention in outdoor and indoor work settings CalPERS uses proxy voting and engagement on climate-related issues to foster alignment with our investment priorities In 2024, staff conducted 447 public company engagements Staff evaluated the top 350 carbon emitters in the CalPERS global public equity portfolio These emitters account for more than 80% of total portfolio Scope 1 and Scope 2 emissions and more than 50% of Scope 3 emissions As a result of the evaluation, CalPERS opposed 395 corporate board directors at 110 of the 350 companies CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 5 Agenda Item 6c, Attachment 2, 6 of 64 Integration ensures consideration of relevant sustainability factors in the investment decision-making process across CalPERS’ total fund Our investment due diligence and external manager selection process assesses transition risks in the shift to a low-carbon economy and how they will be managed, and the physical risks associ- ated with the effects of climate change The CalPERS sustainable investments team works across the total fund with each asset class to accomplish its objectives Each year CalPERS’ sustainable investments staff provides the CalPERS Board of Administration with a program review and updates on five core objectives as seen in Table 1 Table 1: CalPERS' Sustainable Investments Objectives Objective Key Performance Indicator Target Generate Sustainable investments performance Outperformance in each 1 Outperformance relative to asset class benchmarks asset class Periodic total fund climate risk reporting At least annually Increase Portfolio 2 Resilience Proportion of investments with ESG 100% of new investments analysis integrated in diligence process Investments in climate solutions $100B by 2030 Pathway to 3 Net Zero by 2050 Monitor and report carbon footprint and At least annually emissions intensity by asset class (subject to data availability) Cumulative investments with diverse Provide yearly update and/or emerging managers Promote Diversity, 4 Equity & Inclusion Completion of DEI external manager survey Provide yearly update Percentage of diverse public corporate Provide yearly update board directors Compliance with Responsible Contractor 100% compliance for Program Policy annual report Improve Financial Percentage of global public equity engaged Engage 50% of global 5 Markets Efficiency annually public equity AUM Proxy voting and corporate engagements Provide yearly update update Source: CalPERS CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 6 Agenda Item 6c, Attachment 2, 7 of 64 Governance This section discusses management's approach to climate change and the board's oversight role.

The Role of the CalPERS Board of Administration The California Constitution (Article XVI, Section 17) details the authority and fiduciary responsibility of the CalPERS Board of Administration This includes discharging their duties for the exclusive purpose of providing benefits to members and their beneficia- ries, minimizing employer contributions, and defraying reasonable expenses The board comprises 13 members who are elected, appointed, or hold office Ex Officio for four-year terms The board delegates authority to six committees: Board Governance, Finance & Administration, Investment, Pension & Health Benefits, Performance, Compensation & Talent Management, and Risk & Audit The board elects its president each year, who in turn appoints board members to committees which nominate their own chair and vice chair Each committee operates under a formal delegation and policy which sets out their authority These policies are publicly available online The board’s Investment Committee meets at least quarterly and oversees CalPERS’ Governance and Sustainability Strategy in investments Board and committee meetings are held in open session to allow beneficiaries and stakeholders to attend and provide public comment Closed session discussion is limited to personnel matters and market sensitive financial information The board and committee policies are reviewed and approved annually This includes the Governance & Sustainability Principles, which since 2008 have guided CalPERS’ engagement with companies on proxy voting, advocacy with policymakers, and recognition of best practice initiatives across our partnerships The principles specif- ically address climate change in references to environmental management, carbon pricing, deforestation, political lobbying and compensation, board climate competence, and integrated corporate reporting The principles are in alignment with our Investment Beliefs, which figure prominently in the CalPERS Mission & Vision First adopted by the board in 2013, the Investment Beliefs specifically address climate change in relation to risk and return CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 7 Agenda Item 6c, Attachment 2, 8 of 64 The Role of Management The board delegates management responsibility to the chief executive officer CalPERS’ approach on climate change is led by the CEO and the chief investment officer with support from the CalPERS Sustainable Investments Program The program is led by a managing investment director who works with Investment Office senior team members Our work on climate change is coordinated across the total fund and the CalPERS enterprise The Sustainable Investments Program, Corporate Governance, and staff in each asset class support our sustainability and climate solutions working group leads to implement CalPERS’ public and private markets strategy To help generate better performance, we invest in the transition to a low-carbon economy and climate solutions A secondary effect of these investments is their impact to the trajectory of global emissions We can further impact the trajectory by: • Putting companies on a pathway to net zero by 2050 through climate solutions investments • Taking shareowner action to improve the largest emitting companies’ net zero strategies • Engaging the investment industry and government regulators to support the economy’s transition to net zero CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 8 Agenda Item 6c, Attachment 2, 9 of 64 Strategy Our sustainable investment objectives anchor CalPERS’ approach to climate change.

We aim to: • Generate outperformance through investments in climate solutions • Increase portfolio resilience • Improve the efficiency of financial markets with our advocacy, engagement, and partnership activities across our portfolio Table 2: CalPERS' Sustainable Investing Approach Integration and Advocacy Engagement Partnership Investment Goal Goal Goal Goal Generate Provide education Ensure portfolio Partner with aligned outperformance by: (1) and advocate for companies consider investors and investing $100 billion governmental bodies climate risks and organizations to share in climate solutions and to take ambitious, pursue opportunities experiences, pool (2) accelerating the inclusive action to that create value over resources, and amplify integration of climate address climate change the long-term our views throughout risk analysis to increase and catalyze a low- the financial markets portfolio resilience carbon transition that expands investment opportunities Tools & Levers Tools & Levers Tools & Levers Tools & Levers • Investments: • Engage corporate • Engage corporate • Coalitions allocation and management and management and • Working groups security selection boards of directors boards of directors • CA 100+, Ceres, UN • Manager selection • Proxy voting • Proxy voting NZ AOA, PRI, ICGN, and expectations • Exempt solicitations • Exempt solicitations UN GISD, EDCI, ISSB • Investment due • Shareowner • Shareowner IAG, NCREIF, PREA, diligence and proposals proposals GIIA, ILPA, and more processes • Sustainable research Source: CalPERS CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 9 Agenda Item 6c, Attachment 2, 10 of 64 Over the years, CalPERS has demonstrated its commitment to climate action, as shown in Figure 3 Figure 3: CalPERS' Climate Action Milestones 2008 2013 2015 2016 2018 Integrated consideration Adopted investment Supporter of TCFD Convener and Signed the Global of environmental and beliefs which highlight co-founder of Investor Statement social factors alongside climate change in Climate Action 100+ to Governments on our governance agenda long-term value and Climate Change risk mitigation 2019 2021 2023 2024 Founding member of Co-founded the ESG Launched the CalPERS COIO the United Nations- Data Convergence $100 Billion Climate Michael Cohen chosen convened Net-Zero Initiative Action Plan to lead the Climate Asset Owner Alliance Action 100+ steering committee Source: CalPERS Integration Integration ensures consideration of relevant sustainability factors in the investment decision-making process across CalPERS’ total fund This includes assessing and managing transition risks in the shift to a low-carbon economy, and physical risks associated with the effects of climate change Our investment policy and procedures call for environmental, social, and governance (ESG) sources of financially material risks and opportunities to be considered in our investment analyses We do this to improve our portfolio’s long-term performance At CalPERS, the Sustainable Investments Program collaborates with the asset class programs to integrate relevant ESG considerations into decision-making processes across all material investments We research, analyze, and share the latest ESG insights and policy developments from academia and industry with the asset class programs to ensure key ESG considerations inform our investment decisions Figure 4 highlights CalPERS’ ESG integration approach at each investment management phase It explains what guides our ESG integration and identifies the tools and levers that we use to integrate ESG CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 10 Agenda Item 6c, Attachment 2, 11 of 64 Figure 4: CalPERS’ ESG Integration ESG Policies: ESG Procedures: What guides our • CalPERS Total Fund Investment Policy • Asset Class Sustainable Investment ESG principles?

• CalPERS Governance & Sustainability Guidelines Principles (including Labor Principles) When/where do we Pre-Investment At Investment Post-Investment integrate ESG? • Manager & • Investment • Monitoring & investment selection agreements reporting • Due diligence • Side letters • Limited partner questionnaires (DDQ) advisory committee • Investment (LPAC) underwriting memo • Manager engagement What tools & Integration is asset class, investment structure, and sector specific levers do we use to integrate ESG?

Private Markets: Public Markets: • Institutional Limited Partners Association (ILPA) • Universe screening ESG DDQ • Exclusion list • ESG Data Convergence Initiative (EDCI) • Input into credit and equity • GRESB, sustainability certifications, and energy analysis optimization • CalPERS’ proxy voting guidelines • Fund meetings, fund updates, and portfolio • Direct engagement with company updates portfolio company • GP TCFD, climate or ESG annual reporting • SASB, Transition Pathway • Fund manager ESG policy and CalPERS ESG Initiative, and TCFD/ISSB integration staff • CalPERS ESG Manager Expectations • Materiality-based ESG assessment framework Source: CalPERS CalPERS’ Climate Report and Response to Senate Bill 964 | November 2025 11 Agenda Item 6c, Attachment 2, 12 of 64 Asset Class Considerations CalPERS primarily invests across five asset classes – global public equity, global fixed income, real assets, private debt, and private equity – through a combination of internal, external, active, and index-driven management strategies Risk management is paramount at CalPERS It is both centralized, supporting a total fund-level aggregated view of risk, and decentralized, capturing asset class- and investment strategy-specific risk attributes CalPERS strives to integrate consid- erations of climate risk and opportunities at all levels of portfolio monitoring and management, and across all strategies, internal or external, active or index-like Fundamental Analysis Fixed income assets are largely managed within the CalPERS Investment Office using internal fundamental analysis of securities Real assets, private debt, and private equity rely more on fundamental analysis conducted by external managers In these asset classes, CalPERS can retain some level of discretion regarding the security or asset selection; a level of discretion that will vary depending on strategies and investment vehicles (co-investments, separate accounts, or joint vehicles) Where possible, we use data and tools to understand our exposures to the low-carbon transition and/or physical risks expected during the time horizon of the investment and assess if identified risks are priced in 2 This helps our staff and external managers make informed investment decisions Index Orientation CalPERS’ exposure to its global public equity assets is largely driven by internally managed index-driven strategies In this case, levers for managing climate risk are benchmark selection and engagement with index-constituting companies Integrating climate risks and opportunities into our internally generated capital m

Sustainable Investments Program About the Program The Sustainable Investments Program helps the Investment Office deliver returns through the identification, analysis, and management of high-value sustainable investment risks and opportunities that may affect our investment returns.

About the Program CalPERS $100 Billion Climate Action Plan Learn more about our broad and expansive plan to capitalize on the new opportunities created by the move to a low-carbon economy. CalPERS $100 Billion Climate Action Plan Climate Change As an investor in the global economy, the scale and multi-faceted nature of climate change presents a systemic risk to our portfolio.

Find out more about our climate change-related activities. Climate Change Emerging & Diverse Manager Program For more than 30 years, CalPERS has developed and implemented emerging manager programs and invested with emerging and diverse managers. Emerging & Diverse Manager Program Environmental, Social & Governance Integration Our Sustainable Investments team integrates an economics-based environmental, social, and governance (ESG) research and data framework into the investment decision-making process.

Performance & reporting

Transparency stack used here: Facts at a Glance: Investments; Transparency Report FY 2024–25; Official Fund Level Performance (30 Jun 2025); 2024–25 Annual Investment Report (CIO letter + holdings); preliminary FY return newsroom release (14 Jul 2025); Sustainable Investments Annual Program Review (17 Nov 2025); Climate Report / SB 964 response; executive and board HTML pages.

FY 2024–25 path: 11.6% time-weighted net return; asset-class preliminary returns — public equity 16.8%, private equity 14.3%, private debt 12.8%, fixed income 6.5%, real assets 2.7%; multi-year annualized (prelim): 5y 8%, 10y 7.1%, 20y 6.7%, 30y 7.6%. Fund Level Performance PERF: 1y 11.64% (+171 bps), 5y 8.02% (+32 bps), 10y 7.15% (+9 bps), 20y 6.68% (−45 bps), since inception 8.23% (inception 1 Jul 1988).

The preliminary release notes staff and outside experts finalize fiscal-year figures in subsequent months; ending PERF value also reflects contributions, benefit payments, and fees. Finalized year-end market values feed contribution-rate setting for the State/schools (2026–27) and contracting agencies (2027–28) as described in that release.

CalPERS Announces Preliminary 11.6% Return for 2024-25 Fiscal Year July 14, 2025 SACRAMENTO, Calif. – CalPERS today reported a preliminary net investment return of 11.6% for the 12-month period ending June 30, 2025, bringing the Public Employees’ Retirement Fund (PERF) total assets under management to approximately $556.2 billion.

The strong return beat the fund’s discount rate of 6.8%, which is comparable to an assumed rate of return established by the CalPERS Board of Administration. The return also surpassed the benchmark used to gauge the PERF’s performance by 1.7%. As a result, the overall estimated funded status of the PERF increased to 79%.

The funded status stood at 71.4% in 2023 and 75% in 2024. “In just two years, our investment returns have helped CalPERS increase the funded status to nearly 80% and rebound from the economic effects of the pandemic,” said Chief Executive Officer Marcie Frost. “Although there is more work to be done, I am proud to say that CalPERS is delivering for its members and employers.” CalPERS last reported (PDF) a 9.3% return for the 2023-24 fiscal year.

CalPERS’ largest asset class led the way during fiscal year 2024-25. Public equity investments, which comprise approximately 39% of the fund, outperformed all other asset classes with an estimated 16.8% return. Private equity earned a 14.3% return, a result of a strategy overhaul (PDF) in 2022 that included more co-investments.

The strategy is also credited for a 10% cut in the management fee over the last few years. Notably, the private equity portfolio ranked as the best performing of its peers for calendar year 2024. Private debt provided an estimated return of 12.8%. Fixed income and real assets reported returns of 6.5% and 2.7%, respectively, for the fiscal year.

“Despite some market headwinds earlier in the year, our investment strategy paid off,” said Chief Investment Officer Stephen Gilmore. “The team remains poised to take advantage of investment opportunities as they develop and to strike the best possible deals to boost returns and cut costs for the fund.” 1-Year Returns as of June 30, 2025 Asset Class (by size) Net Rate of Return (in percent) Public Equity 16.8 Fixed Income 6.5 Private Equity* 14.3 Real Assets* 2.7 Private Debt* 12.8 *Private market asset valuations lag one quarter and are as of March 31, 2025.

Preliminary total fund annualized returns for the five-year period ending June 30, 2025, stood at 8%; the 10-year period at 7.1%; the 20-year period at 6.7%; and the 30-year period at 7.6%. CalPERS investment and finance staff and outside experts will review the portfolio’s performance in the next few months to finalize the fiscal year returns for 2024-25.

The ending value of the PERF for fiscal year 2024-25 will be based on additional factors beyond investment returns, including employer and employee contributions, monthly payments to retirees, and various investment fees. Once finalized, the fiscal year-end market value of CalPERS’ assets is used to set contribution rates for the State of California and school districts in the 2026-27 fiscal year and for contracting counties, cities, and special districts in the 2027-28 fiscal year.

Controversies & debates

Official attributable actions / disclosures first. Relative performance versus the PERF benchmark is disclosed by CalPERS itself: FY 2024–25 outperformance of about 1.7 percentage points / +171 bps on the Official Fund Level Performance one-year column is a primary fact, not an external allegation.

Climate strategy debates: official SI 2030 / Climate Action Plan materials describe both increased climate-solutions investment and a process, subject to fiduciary duty, regarding securities of companies without credible net-zero plans. That is recorded as published policy design. Stakeholders may contest pace, taxonomy, or engagement-versus-exit choices; this profile does not invent those secondary narratives.

Governance boundary: the Board’s inability to change benefits without the Legislature is an official structural constraint that often surfaces in public pension politics — cited here from the board-members page, not from press colour.

Secondary press may discuss Total Portfolio implementation, private-equity fees, or individual holdings. Prefer CalPERS primary PDFs and newsroom releases when figures conflict. Private contact details from newsroom footers are omitted here.

Timeline

• 1932+ — CalPERS institutional history as California public employees’ retirement system (see CalPERS Story / About materials).
• 1 Jul 1988 — PERF inception date used in Official Fund Level Performance since-inception return series.
• Oct 2016 — Marcie Frost joins as CEO (official bio).
• Nov 2023 — Sustainable Investments 2030 / US$100B Climate Action Plan announced (newsroom / SI materials; ~US$47B baseline).
• 2022 — Private equity strategy overhaul including more co-investments (cited in FY 2024–25 preliminary release).
• Sep 2023 / 2024 transition — Nicole Musicco departs; Stephen Gilmore selected 2 Apr 2024, assumes CIO role July 2024 (appointment news + bio).
• 30 Jun 2025 — FY 2024–25 year-end: 11.6% net return; Official Fund Level Perf PERF MV US$556,252M; Facts money-weighted assets US$563.0B; funded status ~79%.
• 14 Jul 2025 — Preliminary return newsroom release (~US$556.2B AUM).
• Nov 2025 — Board Total Portfolio approach vote (Frost bio); SI Annual Program Review 17 Nov 2025; CIO letter dated 19 Nov 2025.
• 20 Jan 2026 — Theresa Taylor and David Miller re-elected Board President / Vice President for 2026.
• 18 Jun 2026 — Official YouTube upload: Securing Retirement investment-team video (uqoJxff80tA).

Annex: FY 2024–25 returns & AUM series

Opened preliminary newsroom release (14 July 2025), Facts at a Glance: Investments, and Official Fund Level Performance as of 30 June 2025 — kept as parallel official series.

CalPERS Announces Preliminary 11.6% Return for 2024-25 Fiscal Year July 14, 2025 SACRAMENTO, Calif. – CalPERS today reported a preliminary net investment return of 11.6% for the 12-month period ending June 30, 2025, bringing the Public Employees’ Retirement Fund (PERF) total assets under management to approximately $556.2 billion.

The strong return beat the fund’s discount rate of 6.8%, which is comparable to an assumed rate of return established by the CalPERS Board of Administration. The return also surpassed the benchmark used to gauge the PERF’s performance by 1.7%. As a result, the overall estimated funded status of the PERF increased to 79%.

The funded status stood at 71.4% in 2023 and 75% in 2024. “In just two years, our investment returns have helped CalPERS increase the funded status to nearly 80% and rebound from the economic effects of the pandemic,” said Chief Executive Officer Marcie Frost. “Although there is more work to be done, I am proud to say that CalPERS is delivering for its members and employers.” CalPERS last reported (PDF) a 9.3% return for the 2023-24 fiscal year.

CalPERS’ largest asset class led the way during fiscal year 2024-25. Public equity investments, which comprise approximately 39% of the fund, outperformed all other asset classes with an estimated 16.8% return. Private equity earned a 14.3% return, a result of a strategy overhaul (PDF) in 2022 that included more co-investments.

The strategy is also credited for a 10% cut in the management fee over the last few years. Notably, the private equity portfolio ranked as the best performing of its peers for calendar year 2024. Private debt provided an estimated return of 12.8%. Fixed income and real assets reported returns of 6.5% and 2.7%, respectively, for the fiscal year.

“Despite some market headwinds earlier in the year, our investment strategy paid off,” said Chief Investment Officer Stephen Gilmore. “The team remains poised to take advantage of investment opportunities as they develop and to strike the best possible deals to boost returns and cut costs for the fund.” 1-Year Returns as of June 30, 2025 Asset Class (by size) Net Rate of Return (in percent) Public Equity 16.8 Fixed Income 6.5 Private Equity* 14.3 Real Assets* 2.7 Private Debt* 12.8 *Private market asset valuations lag one quarter and are as of March 31, 2025.

Preliminary total fund annualized returns for the five-year period ending June 30, 2025, stood at 8%; the 10-year period at 7.1%; the 20-year period at 6.7%; and the 30-year period at 7.6%. CalPERS investment and finance staff and outside experts will review the portfolio’s performance in the next few months to finalize the fiscal year returns for 2024-25.

The ending value of the PERF for fiscal year 2024-25 will be based on additional factors beyond investment returns, including employer and employee contributions, monthly payments to retirees, and various investment fees. Once finalized, the fiscal year-end market value of CalPERS’ assets is used to set contribution rates for the State of California and school districts in the 2026-27 fiscal year and for contracting counties, cities, and special districts in the 2027-28 fiscal year.

Under the current provisions of the CalPERS Funding Risk Mitigation Policy, the board is provided the option of lowering the discount rate when investment returns exceed the established 6.8% discount rate. Please review the annual investment report (PDF) for a comprehensive overview of the fund’s assets.

Media Advisory A news media availability via Zoom to discuss fiscal year investment returns with CalPERS’ senior leaders will be held Monday, July 14, at 12:00 p.m. Credentialed media can send an email to newsroom@calpers.ca.gov for login information. About CalPERS For more than nine decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service.

Our pension fund serves more than 2 million members in the CalPERS retirement system, making us the largest defined-benefit public pension in the nation. We also administer health benefits for more than 1.5 million members and their families, making CalPERS the nation’s largest purchaser of public employee health services behind the U.S.

Additional information can be found in the Annual Comprehensive Financial Report at www.calpers.ca.gov. Investments 2005–2025 Portfolio Market Value & Annual Return Investment returns power market value to new heights above $560 billion $563.0 bil Annual $477.3 bil investment return (%) 21.7% 11.6% $178.9 bil (24.0%) Investment portfolio at market value ($) 2005-06 2009-10 2014-15 2019-20 2024-25 Total Fund Total Fund Highlights (FY 2024–25) Investment Returns1 & Market Value of Assets2 Investment Market Value of FY Returns Assets (in billions) Total fund market value; 25% $563.0 bil 11.1% change from previous FY 2024-25 11.6% $563.0 2023-24 9.3% $506.6 15% 2022-23 5.8% $464.6 5% 2021-22 (6.1%) $439.4 -5% 2020-21 21.3% $477.3 Total fund annual investment -15% 11.6% rate of return 2019-20 4.7% $392.5 -25% 2018-19 6.7% $372.62021-22 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-142014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2022-23 2023-24 2024-25 2017-18 8.6% $354.0 The discount rate (assumed 2016-17 11.2% $326.5 investment rate of return) 6.8% — what CalPERS expects its 2015-16 0.6% $298.7 investments to earn on average 1 Time-weighted rates of return.

Reflects private equity and real assets valuations Continued » 2 2004–2024 Portfolio Market Value & Annual Return as of March 31, 2025 and are cash adjusted through June 30, 2025. Money-weighted market value of assets. Reflects private equity and real assets valuations as of March 31, 2025 and are cash adjusted through June 30, 2025.

The money-weighted investment rate of return was 12.3% as of June 30, 2025. Data only for the Public Employees' Retirement Fund (PERF) $506.6 bil Annual $477.3 bil for general 12-2025-1 21.7% Investments » p. 2 Total Fund (continued) Summary of Investments, Fair Value Current & Interim Asset Allocation (in billions) Current Interim Policy Target Asset Class Allocation Weight (as of July 1, 2025) Global Equity (Public Equity)3 $225.7 Global Equity (Public Equity)3 38.9% 40.4% Fixed Income 3 $187.1 Fixed Income 3 30.3% 29.1% Private Equity $102.9 Private Equity 17.7% 15.0% Real Assets $74.5 Real Assets 13.1% 15.0% Short-term Investments $22.5 Private Debt 3.8% 3.5% Private Debt $22.0 Total Fund 2.3% — Total Fund Financing (6.1%) (3.0%) California Investments California Investments (FY 2024–25) California Investments by Asset Class 4 (FY 2024–25) 85 +15H Asset Class Fair Value (in billions) Percentage Global Equity (Public Equity) 5 $48.3 21.4% 15.5% $87.7 billion Fixed Income Real Assets 7 6 $8.2 $18.0 4.4% 24.3% California investments as percentage of the Private Equity 7 $10.5 10.2% total fund Private Debt 7 $2.6 11.7% 44.3% change from previous FY Total California Investments $87.7 Sustainable Investing Climate-focused Investments CalPERS' Climate Action Plan (CAP) Progress (FY 2024–25) (FY 2024–25) CAP goal: $100 bil $59.7 bil Total of climate-focused To be allocated $47 bil $59.7 bil investments made toward the $100 billion by 2030 goal Allocated 2023 2025 2030 3 Global Equity and Income includes exposure from derivatives 6 Fixed income also includes a portion of MBS & ABS, which have significant and repo borrowing used for Total Fund Financing.

geographical exposure to CA & MHLP. 7 Real Assets, Private Equity, and Private Debt are as of March 31, 2025. Data only for the Public Employees' Retirement Fund (PERF) 12-2025-1 Official Fund Level Performance Produced by the Financial Office1 Since Inception 20-Yr 10-Yr 5-Yr 1-Yr FYTD As of June 30, 2025 Ending Market Value Excess Bench- Excess Bench- Excess Bench- Excess Bench- Excess Bench- Excess Funds Managed Inception Date (MM) Net Return Bench-mark bps Net Return mark bps Net Return mark bps Net Return mark bps Net Return mark bps Net Return mark bps 2 Public Employees' Retirement Fund 7/1/1988 556,252 8.23% - - 6.68% 7.13% (45) 7.15% 7.06% 9 8.02% 7.70% 32 11.64% 9.93% 171 11.64% 9.93% 171 Judges' Retirement Fund 7/1/1992 66 2.74% 2.59% 14 1.86% 1.69% 16 2.15% 1.98% 18 2.99% 2.76% 23 4.93% 4.68% 25 4.93% 4.68% 25 Judges' Retirement System II Fund 12/1/1996 2,968 6.75% 6.67% 8 6.50% 6.45% 6 6.75% 6.48% 27 7.53% 7.27% 26 11.70% 11.38% 32 11.70% 11.38% 32 Legislators' Retirement System Fund 7/1/1988 91 7.35% 7.34% 1 5.00% 4.88% 12 4.15% 4.02% 13 2.93% 2.89% 4 7.22% 7.19% 3 7.22% 7.19% 3 CEPPT Strategy 1 10/1/2019 235 5.35% 5.32% 3 - - - - - - 5.52% 5.42% 10 10.63% 10.56% 7 10.63% 10.56% 7 CEPPT Strategy 2 1/1/2020 77 2.80% 2.77% 3 - - - - - - 2.54% 2.50% 4 8.79% 8.68% 11 8.79% 8.68% 11 CERBT Strategy 1 6/1/2007 21,998 5.66% 5.30% 36 - - - 6.86% 6.57% 29 7.93% 7.73% 21 12.30% 11.97% 33 12.30% 11.97% 33 CERBT Strategy 2 10/1/2011 2,259 6.51% 6.29% 23 - - - 5.54% 5.31% 23 5.33% 5.19% 14 10.57% 10.33% 24 10.57% 10.33% 24 CERBT Strategy 3 1/1/2012 916 4.98% 4.75% 22 - - - 4.46% 4.28% 18 3.63% 3.54% 9 9.26% 9.08% 18 9.26% 9.08% 18 CalPERS Health Care Bond Fund 8/1/1997 77 3.55% 3.49% 6 3.27% 3.15% 13 1.63% 1.62% 1 -1.00% -0.99% (1) 4.80% 4.68% 12 4.80% 4.68% 12 Long-Term Care Fund 3/1/1996 4,660 5.72% 5.68% 5 4.66% 4.63% 3 4.20% 4.21% (0) 3.85% 3.84% 1 9.48% 10.10% (62) 9.48% 10.10% (62) CalPERS Target Income Fund 12/1/2008 194 5.50% 5.53% (2) - - - 4.46% 4.35% 12 4.54% 4.49% 5 9.56% 9.47% 8 9.56% 9.47% 8 CalPERS Target 2020 Fund 12/1/2008 175 7.06% 7.05% 1 - - - 5.12% 4.99% 13 6.06% 6.00% 6 10.14% 10.06% 8 10.14% 10.06% 8 CalPERS Target 2025 Fund 12/1/2008 245 8.02% 8.00% 3 - - - 6.20% 6.06% 14 7.81% 7.74% 7 11.53% 11.45% 9 11.53% 11.45% 9 CalPERS Target 2030 Fund 12/1/2008 307 8.93% 8.90% 3 - - - 7.01% 6.90% 11 9.44% 9.37% 8 12.76% 12.66% 10 12.76% 12.66% 10 CalPERS Target 2035 Fund 12/1/2008 231 9.77% 9.77% 0 - - - 7.93% 7.80% 13 11.14% 11.05% 9 13.99% 13.89% 11 13.99% 13.89% 11 CalPERS Target 2040 Fund 12/1/2008 219 10.46% 10.43% 3 - - - 8.82% 8.70% 13 12.70% 12.60% 10 15.37% 15.25% 12 15.37% 15.25% 12 CalPERS Target 2045 Fund 12/1/2008 143 10.71% 10.72% (1) - - - 9.27% 9.14% 13 13.08% 12.98% 11 16.06% 15.94% 12 16.06% 15.94% 12 CalPERS Target 2050 Fund 12/1/2008 92 10.77% 10.72% 5 - - - 9.27% 9.14% 13 13.08% 12.98% 11 16.07% 15.94% 12 16.07% 15.94% 12 CalPERS Target 2055 Fund 10/1/2013 39 8.82% 8.74% 8 - - - 9.27% 9.14% 13 13.08% 12.98% 11 16.06% 15.94% 12 16.06% 15.94% 12 CalPERS Target 2060 Fund 11/1/2018 16 11.46% 11.33% 12 - - - - - - 13.08% 12.98% 10 16.07% 15.94% 13 16.07% 15.94% 13 CalPERS Target 2065 Fund 12/1/2022 7 16.06% 15.94% 12 - - - - - - - - - 16.06% 15.94% 12 16.06% 15.94% 12 CalPERS SIP STIF Core 9/1/2010 121 1.49% 1.35% 14 - - - 2.18% 1.98% 21 3.00% 2.76% 24 4.93% 4.68% 25 4.93% 4.68% 25 CalPERS SIP US Short Term Bond Core 10/4/2013 42 1.63% 1.71% (8) - - - 1.78% 1.84% (6) 1.55% 1.58% (3) 5.95% 5.94% 1 5.95% 5.94% 1 CalPERS SIP US Bond Core 10/7/2013 54 2.02% 1.98% 4 - - - 1.78% 1.76% 2 -0.73% -0.73% (1) 6.10% 6.08% 3 6.10% 6.08% 3 CalPERS SIP Real Asset Core 10/8/2013 20 4.40% 4.40% (0) - - - 5.50% 5.49% 1 10.68% 10.74% (6) 11.13% 11.11% 2 11.13% 11.11% 2 CalPERS SIP Russell All Cap Core 10/7/2013 881 13.12% 13.09% 4 - - - 12.98% 12.95% 3 16.01% 15.94% 7 15.30% 15.28% 1 15.30% 15.28% 1 CalPERS SIP Global All Cap EX-US Core 10/7/2013 91 5.87% 5.67% 20 - - - 6.42% 6.18% 24 10.39% 10.20% 18 18.11% 17.83% 28 18.11% 17.83% 28 Terminated Agency Pool 7/1/2013 199 2.16% - - - - - 1.94% - - -2.40% - - 3.65% - - 3.65% - - 1 Official Performance is derived from the Accounting Book of Record (ABOR).

SSB maintains the accounting system. 2 Public Employees' Retirement Fund inception date (7/1/1988) pre-dates benchmark performance (4/30/1989).

Source fold: prelim-return.html + facts-investments.pdf + fund-perf-063025.pdf. Verify against the live page/PDF before citing beyond this page.

Annex: CIO letter fold

Opened Chief Investment Officer’s Letter from the 2024–25 Annual Investment Report (letter dated 19 November 2025; signed Stephen Gilmore).

Investment Section CHIEF INVESTMENT OFFICER’S LETTER improved returns. The team is being empowered to be more November 19, 2025 innovative and we are leveraging those advantages. The Investment Office also made headway on several I am pleased to report on the performance of CalPERS’ initiatives that will contribute to the PERF’s growth.

investments and the operations and initiatives of the Investment One such initiative is the $100 Billion Climate Action Plan, Office for the one-year period that ended June 30, 2025. launched in 2023 as part of our Sustainable Investments 2030 The PERF earned a time-weighted net rate of return of Strategy.

The plan commits CalPERS to investing $100 billion in 11.6 percent, exceeding the discount rate by nearly five climate solutions by the end of 2030, building on an initial percentage points. The ending fair value of investments for the baseline exposure of approximately $47 billion.

The plan is 2024-25 fiscal year was $634.6 billion and the overall funded designed to capitalize on the investment opportunities presented status of the PERF rose from 73.9 percent as of June 30, 2024 by the global transition toward a low-carbon economy while to 79 percent for June 30, 2025.

strengthening our portfolio against the economic and physical The return also surpassed the benchmark used to gauge the effects posed by climate change. PERF’s performance by 1.7 percentage points. In November 2024, CalPERS reported that its climate solution The return is impressive considering the severe market investments had reached $50.1 billion.

This total included downturn that occurred in the wake of the tariff-related contributions from a custom climate-oriented index launched uncertainty earlier in the year. earlier in the year with an initial $5 billion investment. The index, The favorable one-year performance lifted the total PERF five- referred to as “Climate Transition Index”, aims to deliver returns year and 10-year annualized rates of return to 8 percent and comparable to CalPERS’ passive global equity cap-weighted 7.1 percent, respectively.

The 20-year period stands at index, while enhancing exposure to climate solutions and 6.7 percent, and the 30-year period stands at 7.6 percent. CalPERS will report its updated In Fiscal Year 2024-25, public equity investments, which climate solutions exposure in November 2025.

comprised approximately 39 percent of the fund, outperformed Our ability to attract and retain talented employees all other asset classes with an estimated 16.8 percent return. empowered by quality technology solutions is essential. We This return exceeded its benchmark by 45 basis points, made good progress in these areas as well.

translating to $804 million of dollar value added. Personnel vacancy rates in the Investment Office declined. We Private equity earned a 14.3 percent return. This materially adopted technology solutions to reduce inefficient manual exceeded the return from its listed equities benchmark over the processes and to better analyze and share data, contributing to same period and provides validation that the strategy overhaul the operational efficiency of our teams.

undertaken in 2022 is delivering for members. Taken together, these measures are in line with our fiduciary In addition, the Private Equity Program collaborated with the duty to members to deliver the best possible risk-adjusted sustainable investments team to adopt a set of labor principles returns.

and develop an actionable pipeline contributing to our climate Finally, looking toward the future, and as part of the Asset investment goals. Liability Management process, we began discussions with the Private debt provided an estimated return of 12.8 percent, and CalPERS Board of Administration and other stakeholders on the successful program continued to grow in the fiscal year.

potential measures to strengthen the PERF. I look forward to CalPERS’ private market asset returns are reported for the continuing these conversations in the new fiscal year. The 2024-25 fiscal year was not without its challenges, but the Fixed income reported an absolute return of 6.5 percent for Investment Office overcame them to earn our best one-year the fiscal year.

Source fold: annual-investment-report-fy-2025 PDF — CIO letter pages. Verify against the live page/PDF before citing beyond this page.

Annex: Allocation & California investments

Asset-class fair values, current vs interim policy weights, and California investment breakdown from Facts at a Glance: Investments.

Additional information can be found in the Annual Comprehensive Financial Report at www.calpers.ca.gov. Investments 2005–2025 Portfolio Market Value & Annual Return Investment returns power market value to new heights above $560 billion $563.0 bil Annual $477.3 bil investment return (%) 21.7% 11.6% $178.9 bil (24.0%) Investment portfolio at market value ($) 2005-06 2009-10 2014-15 2019-20 2024-25 Total Fund Total Fund Highlights (FY 2024–25) Investment Returns1 & Market Value of Assets2 Investment Market Value of FY Returns Assets (in billions) Total fund market value; 25% $563.0 bil 11.1% change from previous FY 2024-25 11.6% $563.0 2023-24 9.3% $506.6 15% 2022-23 5.8% $464.6 5% 2021-22 (6.1%) $439.4 -5% 2020-21 21.3% $477.3 Total fund annual investment -15% 11.6% rate of return 2019-20 4.7% $392.5 -25% 2018-19 6.7% $372.62021-22 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-142014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2022-23 2023-24 2024-25 2017-18 8.6% $354.0 The discount rate (assumed 2016-17 11.2% $326.5 investment rate of return) 6.8% — what CalPERS expects its 2015-16 0.6% $298.7 investments to earn on average 1 Time-weighted rates of return.

Reflects private equity and real assets valuations Continued » 2 2004–2024 Portfolio Market Value & Annual Return as of March 31, 2025 and are cash adjusted through June 30, 2025. Money-weighted market value of assets. Reflects private equity and real assets valuations as of March 31, 2025 and are cash adjusted through June 30, 2025.

The money-weighted investment rate of return was 12.3% as of June 30, 2025. Data only for the Public Employees' Retirement Fund (PERF) $506.6 bil Annual $477.3 bil for general 12-2025-1 21.7% Investments » p. 2 Total Fund (continued) Summary of Investments, Fair Value Current & Interim Asset Allocation (in billions) Current Interim Policy Target Asset Class Allocation Weight (as of July 1, 2025) Global Equity (Public Equity)3 $225.7 Global Equity (Public Equity)3 38.9% 40.4% Fixed Income 3 $187.1 Fixed Income 3 30.3% 29.1% Private Equity $102.9 Private Equity 17.7% 15.0% Real Assets $74.5 Real Assets 13.1% 15.0% Short-term Investments $22.5 Private Debt 3.8% 3.5% Private Debt $22.0 Total Fund 2.3% — Total Fund Financing (6.1%) (3.0%) California Investments California Investments (FY 2024–25) California Investments by Asset Class 4 (FY 2024–25) 85 +15H Asset Class Fair Value (in billions) Percentage Global Equity (Public Equity) 5 $48.3 21.4% 15.5% $87.7 billion Fixed Income Real Assets 7 6 $8.2 $18.0 4.4% 24.3% California investments as percentage of the Private Equity 7 $10.5 10.2% total fund Private Debt 7 $2.6 11.7% 44.3% change from previous FY Total California Investments $87.7 Sustainable Investing Climate-focused Investments CalPERS' Climate Action Plan (CAP) Progress (FY 2024–25) (FY 2024–25) CAP goal: $100 bil $59.7 bil Total of climate-focused To be allocated $47 bil $59.7 bil investments made toward the $100 billion by 2030 goal Allocated 2023 2025 2030 3 Global Equity and Income includes exposure from derivatives 6 Fixed income also includes a portion of MBS & ABS, which have significant and repo borrowing used for Total Fund Financing.

geographical exposure to CA & MHLP. 7 Real Assets, Private Equity, and Private Debt are as of March 31, 2025. Data only for the Public Employees' Retirement Fund (PERF) 12-2025-1

Source fold: facts-investments.pdf. Verify against the live page/PDF before citing beyond this page.

Annex: Sustainable Investments & climate

Net-zero / US$100B Climate Action Plan page language plus November 2025 Sustainable Investments Annual Program Review and Climate Report / SB 964 response folds.

CalPERS $100 Billion Climate Action Plan A plan to capitalize on new opportunities created by the move to a low-carbon economy Capital for Change One of the World's Biggest Commitments to Climate Solutions CalPERS will target at least $100 billion in climate solutions, more than double our exposure as of 2023, funding progress through mitigation, adaptation, and transition.

Incredible Opportunity Investing in the Energy Transition Provides Returns for Our Members The transition is the largest economic revolution of our time. It is a major opportunity, with global investors spending $1.8 trillion on energy transition technologies in 2023.

1 Reducing Risk Making Our Portfolio & Planet More Resilient Investing in change across all asset classes will halve the carbon intensity of CalPERS' portfolio by 2030 and cut the risk that climate change poses to the pension fund. Potential Investments Mitigation Renewable energy: Solar, wind, hydro, and other renewable sources Technologies that capture and store CO2 emissions Waste management: Reducing, recycling, reusing, and capturing methane from landfills Adaptation Water management: Systems addressing droughts, floods, and ensuring water supply Agricultural adaptation: Techniques like drought-resistant crops Disaster risk reduction: Early warning systems and community preparedness Transition Climate-friendly operations: Alternative materials in cement production and energy efficiency and carbon capture for cement plants Developing sustainable fuels: Aviation fuels from renewable sources and electric or hydrogen-powered aircraft for shorter routes Low-carbon sources: Moving to wind, solar and hydroelectric power, retrofitting fossil fuel power plants, and exploring advanced nuclear CalPERS' Climate Action Milestones 2008 Integrated environmental and social factors into our governance agenda 2013 Adopted investment beliefs highlighting climate change in long-term value and risk mitigation 2015 Supported Task Force on Climate-Related Financial Disclosures (TCFD) 2016 Convened and co-founded Climate Action 100+ 2018 Signed Global Investor Statement to Governments on Climate Change 2019 Founding member of United Nations' Net Zero Asset Owner Alliance 2021 Co-founded ESG Data Convergence Initiative 2023 Launched $100 Billion Climate Action Plan 2024 CalPERS COIO Michael Cohen named Climate Action 100+ steering committee chair 2025 Reached $60 billion in climate solutions investments Released the CalPERS’ Climate Report and Response to Senate Bill 964 News Releases CalPERS Investments in Climate Solutions Near $60 Billion Reports CalPERS’ Climate Report and Response to Senate Bill 964 (PDF) CalPERS Sustainable Investments 2030 Strategy (PDF) Other Resources CalPERS $100 Billion Climate Action Plan (PDF) CalPERS $100 Billion Climate Action Plan (Video) Climate Solutions Fact Sheet (PDF) Footnotes Bloomberg, Global Clean Energy Investment Jumps 17%, Hits $1.8 Trillion in 2023 - January 30, 2024 ( 1 ) Sustainable Investments Annual Program Review Peter Cashion Nelson Da Conceicao Travis Antoniono Managing Investment Director Investment Director Investment Director Fanny de Charbonniere Miguel Silva Investment Committee Investment Director Associate Investment November 17, 2025 Manager stainable Investments November 17, 2025 iness Updates and Key Performance Indicators Appendix Performance • $60 billion1 in climate solutions investments • Portfolio emissions intensity 11% lower YoY with slight decrease in absolute emissions • Allocated $7.3 billion to diverse managers and $2.2 billion to emerging managers1&2 during FY 24-25 – People • Human Capital Management: Implementation of Labor Principles, Responsible Contractor Program (RCP) Policy refresh complete, Lenox Park DEI survey complete • SI team build-out: SI team build out essentially completed (8 to 18 staff since 2023) – Process • ESG: o Development of private markets ESG integration roadmap o Labor Principles Scoring Framework applicable to public markets • Regulatory advocacy, corporate engagement, CA100+, EDCI and other partnerships • CalPERS Climate Strategy Report • Stakeholder engagements 1 As of June 30th, 2025; Total does not include committed uncalled capital.

2 Figures are not mutually exclusive due to the overlap between diverse and emerging characteristics. nts brief...) Lot happening in the global climate market this year… Let’s distill it down into 4 points: 1. Climate as a mega trend: Despite US climate policy headwinds, climate remains very much a mega trend alongside AI and de-globalization.

'Climate' will play out over the coming years AND decades to come. Climate solutions can be faster, cheaper, more efficient. Climate Risk is real and escalating – Adaptation investment needed. Global climate market: All systems go. Climate transition is accelerating from India, to China to the EU 3.

US climate market – more nuanced. 2 opposing forces: (i) policy changes → partial headwind versus (ii) economics & necessity. Energy Supply & Demand factors will be key drivers -Policy detractors: Offshore wind, EVs, building electrification, tariffs -Policy winners: Nuclear, grid improvements, carbon capture, geothermal 4.

Implications for CalPERS, where we are, and where we are going on tes a challenge statement into a value-add solution for the portfolio Take on a Generate Ideas Asset Class + SI Challenge Statement SI develops solutions to Refine Through Collaboration SI Risk – OR – Opportunity challenges Ideas evolve through rigorous discussion, debate, creativity and • How to manage and monitor commitment to solution labor related issues • How to invest profitably in • Engage in open debate, creative climate tension, and shared commitment • How to mitigate ESG risks • Facilitated by INVO culture Execute Validate Ultimate Target: Add Implement and report Test feasibility and Value to the Portfolio outcomes alignment oration with the Asset Classes through debate, discussions, creativity and finally, commitment to solution.

Total Fund Private Sustainable Public Markets Investments Markets SI provides support and expertise across a variety of sustainability areas: • Stakeholder engagement • Stewardship support • Emerging Manager • Advocacy • Sustainability reporting • ESG integration and • Partnerships • Human capital climate risk assessment • Sustainability networks • Climate investing rategy | Objectives 1 Generate outperformance by investing in climate solutions and emerging and diverse managers 2 Increase portfolio resilience by fully integrating ESG analysis, including climate risk analysis 3 Implement a thoughtful path to Net Zero through investments, engagement and advocacy 4 Promote greater inclusion and representation in the financial industry and the global economy 5 Build and promote efficient and equitable financial markets through advocacy and regulatory action tive KPI Target Status Sustainable Investments performance relative to asset 1 Generate Outperformance class benchmarks Outperformance in each asset class In progress Periodic Total Fund climate risk reporting At least annually ✓ 2 Increase Portfolio Resilience Proportion of investments with ESG analysis integrated in diligence process 100% of new investments ✓ Investments in Climate Solutions $100B by 2030 In progress 3 Pathway to Net Zero by 2050 Monitor and report carbon footprint and emissions intensity by asset class At least annually (subject to data availability) ✓ Cumulative investments with diverse and/or emerging managers Provide yearly update ✓ Promote Inclusion and 4 Representation Completion of DEI external manager survey Provide yearly update ✓ Percentage of diverse public corporate board directors Provide yearly update ✓ Compliance with Responsible Contractor Program (RCP) Policy 100% compliance for annual report ✓ Improve Financial Markets 5 Efficiency Percentage of Global Public Equity engaged annually Engage 50% of GPE AUM ✓ Proxy voting and corporate engagements update Provide yearly update ✓ ce through investments in Climate Solutions and Emerging Managers • Generating out-performance entails investment origination, asset tracking and performance measurement • Origination: In addition to allocating to a Public Equities climate index, over $7 billion has been committed to climate- dedicated private funds since November 2023 • Tracking: SI collaborates with all asset classes to tag climate investments across climate dedicated climate active strategies, generalist funds and co-investments • Performance Measurement: ‒ Publics: Yes – performance can be measured from the start ‒ Privates: Not yet – early-stage performance data for private investments does not provide meaningful information because of J-curve effects.

Performance for privates will be reported after multiple years, consistent with current practice ‒ Emerging Managers’ performance has been tracked for years1, with recent results in Private Equity showing outperformance in contrast with historical underperformance 1 Mosaic is in the initial stages of its investment life cycle.

Any performance analysis done on these funds would not generate meaningful results as private equity funds are understood to be long-term investments. Index (CTI) • CTI assets grew from $5 billion to $5.8 billion in FY 24-25, performing in line with the cap-weighted index despite policy headwinds in the U.S.

Objective Outcome (Relative to Cap-Weight Index) Deliver rules-based and low tracking error alternative to cap- Green Revenue Exposure1 +50% Performance -0.01% weighting delivering higher exposure to climate solutions and lower carbon intensity Carbon Intensity1 -50% Tracking Error2 0.73% As of 06/30/25 1.5% National 1.0% Energy Emergency “Liberation Day” 0.73% 0.5% Tracking Error 0.0% Range of Possible Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 -0.5% Outcomes (95% confidence) -1.0% -1.5% (1) Target values set at each portfolio rebalance.

(2) Realized tracking error estimated using monthly excess performance relative to the CalPERS Custom FTSE Global Benchmark index. Table compares Private Equity Asset Class return vs Private Equity policy benchmark; and Current EM Fund of Fund Performance vs Private Equity policy benchmark • Recent performance (DEM II, III) aligns with external research indicating that Emerging Managers can outperform the benchmark (net of fees), while other funds have underperformed, some significantly.

It's too early to draw conclusions on GCM Grosvenor Elevate (or TPG Next). Emerging Manager Fund of Fund & GP Stake Performance Summary - Net of Fees Private Equity Asset Class (as of 6/30/2025) Excess Return Legend: 10 - Yr 5 - Yr 3 - Yr Red Font: Underperformance Ending Asset Total Excess Total Excess Total Excess compared to policy 1 benchmark Partnership Value (M) Return Return Return Return Return Return Private Equity $ 98,259 11.5% 0.2% 16.6% -0.8% 7.4% -1.2% Green Font: Outperformance compared to policy Capital Link I and II $ 46 5.2% -6.2% 3.5% -13.9% -4.8% -13.3% benchmark DEM I, II, and III $ 828 13.2% 1.8% 20.3% 2.9% 13.3% 4.7% GCM Grosvenor Elevate I $ 44 - - - - - - 1 Private Equity Partnerships time weighted rate of returns are net of investment expenses and are computed by State Street Bank.

Market values are based on General Partners’ most recent received financial statements and any cash adjustments made through the reporting date. 1 Private Equity Partnerships time weighted rate of returns are net of investment expenses and are computed by State Street Bank.

Market values are based on General Partners’ most recent received financial statements and any cash adjustments made through the reporting date. lio resilience by accelerating the integration of Environmental, Social & Governance (ESG) analysis, including climate risk analysis, into the investment diligence process and portfolio management ESG Integration Enhancements: Development of private markets ESG integration roadmap Targeted retroactive review of existing private markets manager's ESG programs in progress Development of Labor Principles Scoring Framework applicable to public markets Building a more climate resilient portfolio in public markets (CTI, Climate active search in GPE) tegration of Labor Principles • SI, in collaboration with Corporate Governance, developed a Labor Principles Scoring Framework that is being piloted with Global Fixed Income, and applicable across public markets Pre-Investment Integrate score in security selection Measure (risk profile, fair pricing) Combine KPIs for all Translate each Measurements Post-Investment entities in our Labor Principle into Labor Identify and review portfolio holdings Portfolio / into KPIs Principles with score above critical threshold Investment Score Universe Engagement Use as input in Corporate Engagement prioritization Profile 1 • Corporate commitments to reduce emissions are pervasive, but targets in place imply significant warming ahead • Climate risk financial impact estimates highlight the significance and policy-insensitivity of physical risk damages • Corporate engagement and climate solutions investments are two climate risk mitigants under our control Portfolio Implied Climate Risk Physical Risk Commitments Temperature Rise Financial Impact2 Drivers Transition Physical Extreme Coastal Low River Heat Flooding Flow 83% 38% 2.7oC 2oC -4.6% -2.0% -2.6% Orderly Have GHG Aligned with Reduction Targets Below-2oC Scenarios 3oC -5.4% -1.9% -3.5% 1 Analysis restricted public equity and US corporate credit portfolio holdings due to data availability .

2 Derived using the MSCI Climate Value-at-Risk model, which estimates the impact of climate policies and physical damages on asset values under specific global warming scenarios. The impact, expressed as a percentage of current enterprise value, reflects discounted cash flows through 2100.

utions reflects both market appreciation and additional deployment of capital in the space • Lower emissions intensity recorded across most asset classes, accompanied by a modest decrease in absolute emissions Climate Solutions Financed Emissions Emissions Intensity $59.7 19.7 42.6 Billion Million tCO2e tCO2e/$ MM Invested (2024: $50 Billion) (2024: 21.1 Million tCO2e (2024: 47.9) Financed Emissions and Emissions Intensity are based on holdings and emissions data available as of 06/30/25.

Estimat Agenda Item 6c, Attachment 2, 1 of 64 CalPERS’ Climate Report and Response to Senate Bill 964 November 2025 Agenda Item 6c, Attachment 2, 2 of 64 Table of Contents Introduction . 7 The Role of the CalPERS Board of Administration . 35 Transition and Physical Climate-Related Financial Risks .

Source fold: net-zero HTML + SI program review PDF + climate-sb964 PDF + sustainable program HTML. Verify against the live page/PDF before citing beyond this page.

Annex: Transparency & membership

Transparency Report FY 2024–25 folds on finances, funded status framing, and retirement-plan membership counts.

2024-25 Transparency Report California Public Employees’ Retirement System A Component Unit of the State of California Message from the CEO I am pleased to share the fourth annual Transparency Report of the California Public Employees’ Retirement System (CalPERS) In 2025, CalPERS ranked fourth globally and for the fiscal year 2024-25.

achieved the highest score among U.S. funds This report is designed with our stakeholders in mind, providing CalPERS Median a clear and concise overview of our financial position and FY CEM Score Score reaffirming our dedication to transparency and accountability in serving our members, employers, and the State of California.

2023–24 85 81 Five years ago, we began participating in CEM’s Global Pension 2022–23 84 77 Transparency Benchmark, which emphasizes the importance 2021–22 76 76 of being able to find information easily. Offering a snapshot of 2020–21 78 68 CalPERS for the fiscal year, the Transparency Report simplifies 2019-20 77 76 and consolidates complex information otherwise only found in extensive reports like the Annual Comprehensive Financial Report (ACFR), the Funding Levels and Risks Report, and the Health Benefits Program Annual Report.

CEM scores received for member service performance. This Within this report, you’ll find high-level insights into CalPERS’ initiative is part of our ongoing efforts to enhance our CEM Pension funded status, financial health, investment performance, Transparency score.

In 2025, CalPERS ranked fourth globally and sustainability initiatives, membership demographics, diversity achieved the highest score among U.S. and inclusion efforts, and organizational activities. We have added two extra measures in the Transparency Report: five Marcie Frost year historical fund composition asset class and added our Chief Executive Officer Table of Contents Finances .

7 is reported for Fiscal Year (FY), except the Health Benefits Program data reported for Calendar Year (CY), unless Investments . 21 Report, the Health Benefits Program Annual Report, and Commitment to Diversity, Equity & Inclusion Report at CalPERS Organization .

Finances A glimpse at the sources of funds used to pay retirement benefits to CalPERS members. Additional information can be found in the Annual Comprehensive Financial Report at www.calpers.ca.gov. Finances 2005–2025 Cast flow / Contributions to the Fund / Money In-n-Out Grap highe most Total contributions1 ( ) and investment income ( ) together serve as the financial foundation to pay lifetime pension benefits ( ), even in down market years.

$100 bil Total Employer & Member Contributions $112.9 bil $80 bil Investment Income Gain/Loss $91.6 bil $60 bil Pension Payments $40 bil ($8.3 bil) $20 bil $0 bil $-20 bil $-40 bil $27.4 bil $29.1 bil $34.6 bil $-60 bil 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2004–2024 Cast flow / Contributions Total Contributions 1 to the Fund / Money Pension Investment Income In-n-OutPayments Grap (FY 2024–25) (FY 2024–25) (FY 2024–25) highe $30.2 bil 3.3% change $61.4 bil 38.7% change $34.6 bil 5.4% change most from previous FY from previous FY from previous FY $100 bil Total Employer & Member Contributions $112.9 bil $80 bil Contributions to the Fund Investment Income Gain/Loss Pension Payments $75.5 bil $60 bil Funding by Source (FY 2024–25) $40 bil How Public Employee Pensions Are Funded 2 ($8.3 bil)(20-year average) �� $20 bil Investment income Every public employee pension $61.4 bil dollar paid to CalPERS retirees $0 Member contributions comes from three sources, with –$20 bil $91.6 bil $6.8 bil 55¢ 11¢ 34¢ 66 cents coming from CalPERS –$40 bil investment earnings and member Employer contributions contributions.

$27.4 bil 2$29.1 bil $32.8 bil –$60 bil $23.4 bil Investment Member Employer 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 earnings2014-15 2013-14 contributions contributions 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 1 Includes member and employer contributions.

Continued » 2 Average income/contributions over the last 20 years. Data only for the Public Employees' Retirement Fund (PERF) 12-2025-1 Finances » p. 2 Contributions to the Fund (continued) Employer Contributions (FY 2024–25) Contributions and Income (in thousands) ��� School districts and Employer Member Net Investment charter schools FY Contributions Contributions Income (Loss) Total 3 $5.7 bil / 25% 2024–25 $23,421,228 $6,801,588 $61,393,419 $91,616,235 2023–24 $24,868,493 $6,389,252 $44,247,773 $75,505,518 $23.4 bil State of California 2022–23 $24,227,246 $5,672,430 $27,013,684 $56,913,360 $8.0 bil / 34% 2021–22 $22,702,547 $5,159,664 ($36,182,422) ($8,320,211) Public agencies 2020–21 $20,034,757 $4,757,000 $88,059,909 $112,851,666 $9.7 bil / 41% Payments & Expenses from the Fund Total Pension Payments4 by Type Total Payments (in thousands) (FY 2024–25) Admin.

�� Retirement payments FY Payments 4 Refunds Expenses Total $31.5 bil / 90% 2024–25 $34,602,108 $393,145 $363,655 $35,358,908 2023–24 $32,815,645 $366,423 $378,941 $33,561,009 Beneficiaries5 payments $34.6 bil $2.7 bil / 8% 2022–23 $31,084,243 $391,113 $323,014 $31,798,370 2021–22 $29,118,345 $329,555 $297,464 $29,745,364 Survivors payments $236.7 mil / 1% 2020–21 $27,415,194 $287,556 $392,119 $28,094,869 Pension Administrative Costs (FY 2023–24) Pension Administrative Cost a Year Per Member 6 Cost per Pension administrative cost per FY member 6 $199 member 6 2023–24 $199 2.6% change from previous FY 2022–23 $194 2021–22 $223 2020–21 $202 2019–20 $217 3 Total contributions does not include plan-to-plan movement or securities lending or other income.

Continued » 4 Total payments does not include plan-to-plan movement. Includes retirement, beneficiaries, and survivor payments. 5 Includes beneficiaries, plus beneficiaries/survivors. A beneficiary can be anyone a member selects to receive a lump-sum or lifetime benefit and is not set by law.

A survivor is defined by state law in order of eligibility. A beneficiary/survivor can be the same person. 6 Includes costs for actives, retirees, beneficiaries, and survivors. Data only for the Public Employees' Retirement Fund (PERF) 12-2025-1 calpers.ca.gov.

Financial Details Fiduciary Net Position – Public Employees' Retirement Fund (PERF) (in thousands) FY 2024–25 Total FY 2023–24 Total Increase/(Decrease) Assets & Deferred Outflows of Resources: Cash & Cash Equivalents $1,523,889 $1,320,908 $202,981 Receivables $53,609,237 $35,307,984 $18,301,253 Investments $634,609,436 $551,411,623 $83,197,813 Securities Lending Collateral $8,824,622 $8,903,958 ($79,336) Capital Assets, Net & Other Assets $196,956 $204,623 ($7,667) Total Assets $698,764,140 $597,149,096 $101,615,044 Deferred Outflows of Resources $174,929 $221,564 ($46,635) Total Assets & Deferred Outflows of Resources $698,939,069 $597,370,660 $101,568,409 Liabilities & Deferred Inflows of Resources: Retirement Benefits, Investment Settlement & Other $108,826,503 $68,415,327 $40,411,176 Net Pension & OPEB Obligation $903,071 $959,561 ($56,490) Securities Lending Obligations $26,113,443 $21,221,026 $4,892,417 Total Liabilities $135,843,017 $90,595,914 $45,247,103 Deferred Inflows of Resources $120,251 $151,780 ($31,529) Total Liabilities & Deferred Inflows of Resources $135,963,268 $90,747,694 $45,215,574 Total Net Position Restricted for Pension Benefits $562,975,801 $506,622,966 $56,352,835 Changes in Fiduciary Net Position – PERF (in thousands) FY 2024–25 Total FY 2023–24 Total Increase/(Decrease) Additions: Member Contributions $6,801,588 $6,389,252 $412,336 Employer Contributions $23,421,228 $24,868,493 ($1,447,265) Nonemployer Contributions — $4,306 ($4,306) Net Investment Income (Loss) $61,393,419 $44,247,773 $17,145,646 Securities Lending & Other Income $95,508 $95,992 ($484) Plan-to-Plan Resource Movement $968 $4,167 ($3,199) Total Additions $91,712,711 $75,609,983 $16,102,728 Deductions: Retirement, Death & Survivor Benefits $34,602,108 $32,815,645 $1,786,463 Refund of Contributions $393,145 $366,423 $26,722 Administrative Expenses $363,655 $378,941 ($15,286) Plan-to-Plan Resource Movement $968 $4,167 ($3,199) Total Deductions $35,359,876 $33,565,176 $1,794,700 Increase (Decrease) in Net Position $56,352,835 $42,044,807 $14,308,028 Net Position: Beginning of Year $506,622,966 $464,578,159 $42,044,807 End of Year $562,975,801 $506,622,966 $56,352,835 Funding Examining our efforts at ensuring long-term stability of California’s Public Employees’ Retirement Fund.

Source fold: transparency-report-fiscal-year-2024-25.pdf. Verify against the live page/PDF before citing beyond this page.

FAQ

What is CalPERS?

The California Public Employees’ Retirement System (CalPERS) is the largest defined-benefit public pension in the United States and a component unit of the State of California. It administers retirement benefits for more than 2 million members and health benefits for more than 1.5 million members and their families, and invests the Public Employees’ Retirement Fund (PERF) and related portfolios under Board of Administration oversight.

What is CalPERS’ latest official PERF asset figure?

As of 30 June 2025, the Official Fund Level Performance report prepared by the CalPERS Financial Office shows PERF ending market value of US$556,252 million. The 14 July 2025 newsroom preliminary release cited approximately US$556.2 billion. Separately, Facts at a Glance: Investments and the Transparency Report present a money-weighted market value of assets of US$563.0 billion for FY 2024–25 (private equity and real assets valuations as of 31 March 2025, cash-adjusted through 30 June 2025). Cite the series that matches your use case; do not silently equate them.

What return did the PERF earn in FY 2024–25?

CalPERS reported a preliminary time-weighted net investment return of 11.6% for the 12 months ended 30 June 2025 (newsroom 14 July 2025; Facts at a Glance; CIO letter dated 19 November 2025). The Official Fund Level Performance table shows 11.64% net for the one-year / FYTD columns, +171 bps versus the PERF benchmark. The money-weighted investment rate of return was 12.3% as of 30 June 2025 (Facts footnote). The return exceeded the 6.8% discount rate and the PERF benchmark by about 1.7 percentage points.

Who is CEO and who is CIO?

Marcie Frost is Chief Executive Officer (joined October 2016; listed on the live Executive Officers page). Stephen Gilmore is Chief Investment Officer (selected 2 April 2024; assumed the role in July 2024; still listed as CIO on the live Executive Officers page and official bio as of 6 September 2026 research). Do not present a departed CIO as current—verify against calpers.ca.gov.

Who leads the Board of Administration?

On 20 January 2026 the Board re-elected Theresa Taylor as Board President (fourth consecutive one-year term) and David Miller as Vice President (third one-year term). The Board sets employer contribution rates, investment asset allocation, and actuarial valuations, but cannot add, change, or delete benefits without Legislature concurrence.

What is the discount rate and funded status?

The Board’s assumed investment rate of return / discount rate referenced in FY 2024–25 results communication is 6.8%. Estimated PERF funded status rose to 79% as of 30 June 2025 (preliminary news; CIO letter). Transparency materials frame assets near US$563 billion against liabilities near US$716 billion and unfunded actuarial liability near US$153 billion (estimate as of 30 June 2025).

What is the Sustainable Investments / Climate Action Plan?

CalPERS’ Sustainable Investments 2030 Strategy includes a US$100 Billion Climate Action Plan to invest in climate solutions (mitigation, adaptation, transition) by the end of 2030, aligned with a pathway toward net zero by 2050 and a goal language of roughly halving portfolio emissions intensity by 2030. Facts at a Glance cites US$59.7 billion of climate-focused investments toward that goal in FY 2024–25; the November 2025 Sustainable Investments Annual Program Review cites about US$60 billion.

How is the PERF allocated?

Facts at a Glance: Investments (FY 2024–25) shows fair values including Global Equity (Public) US$225.7B (38.9% current), Fixed Income US$187.1B (30.3%), Private Equity US$102.9B (17.7%), Real Assets US$74.5B (13.1%), Private Debt US$22.0B (3.8%), plus short-term investments and total-fund financing. Interim policy targets as of 1 July 2025 are also published in that Facts sheet.

Why does this profile use Organization and GovernmentOrganization?

CalPERS is a California public pension system and a component unit of the State of California administering statutory retirement and health benefits. This UAO profile models Organization + GovernmentOrganization, with sameAs limited to official calpers.ca.gov / YouTube URLs.

Does this profile invent AUM or leadership seats?

No. Asset figures, returns, allocation weights, membership counts, board officers, and executive titles are taken from dated official CalPERS PDFs and HTML pages opened for this research pack. Private emails and phone directories are omitted. Stephen Gilmore is presented as current CIO only because live calpers.ca.gov still lists him as such.

What multi-year PERF returns does CalPERS publish?

The 14 July 2025 preliminary release cites annualized net returns of 8% (5-year), 7.1% (10-year), 6.7% (20-year), and 7.6% (30-year) as of 30 June 2025. The Official Fund Level Performance PDF shows PERF net returns of 11.64% (1-year), 8.02% (5-year), 7.15% (10-year), 6.68% (20-year), and 8.23% since inception (1 July 1988).

Where should corrections be sent?

Corrections: info@universalassetowners.com. Prefer official CalPERS primaries over secondary press when figures conflict. Any UAO Influence Index is an editorial composite for navigation — not a credit rating or official CalPERS metric.

Sources & further reading

• calpers.ca.gov (official)
• Executive Officers
• Marcie Frost — CEO bio
• Stephen Gilmore — CIO bio
• Board Members
• Preliminary 11.6% FY 2024–25 return (14 Jul 2025)
• Stephen Gilmore CIO appointment (2 Apr 2024)
• Board officers re-elected for 2026 (20 Jan 2026)
• Facts at a Glance: Investments (FY 2024–25 PDF)
• Official Fund Level Performance as of 30 Jun 2025 (PDF)
• 2024–25 Annual Investment Report (PDF)
• Transparency Report FY 2024–25 (PDF)
• Sustainable Investments Annual Program Review (17 Nov 2025)
• US$100 Billion Climate Action Plan
• Official YouTube: CalPERS
• UAO person SSR: Marcie Frost; Stephen Gilmore; Michael Cohen

Secondary press was not used for AUM, returns, or seats. Corrections: info@universalassetowners.com.

Official video

Official embed from the CalPERS YouTube channel (@calpers): Securing Retirement: How the CalPERS Investment Team is Working to Protect Benefits (video id uqoJxff80tA; oEmbed author CalPERS; uploadDate 2026-06-18).

Completeness note

This profile targets ~10,000 sourced words from opened official CalPERS HTML and PDFs (Facts, Fund Level Performance, AIR CIO letter, Transparency, SI review, Climate/SB964, leadership/board pages). Non-blocking expansions: full ACFR Basic Financial Statements narrative, complete AIR holdings analytics, Investment Beliefs PDF if republished at a stable URL, and deeper Total Portfolio implementation minutes after November 2025. No filler invented seats, phones, private emails, or non-official AUM.