August 31, 2015
CalPERS (California Public Employees’ Retirement System), the country’s largest public pension fund and a major commercial real estate owner, is liquidating some of its assets in efforts to generate cash.
CalPERS had a $5 billion shortfall last year, because contributions from taxpayers and current employees were not enough to cover monthly checks sent to retirees.
CalPERS has about $300 billion in total investments, so it is not in danger of running out of cash. However, it does acknowledge facing a significant amount of risk.
CalPERS is expected to put its money into more conservative investments, such as bonds.
There is no indication yet whether or not the organization will sell off any of its nationwide commercial real estate holdings.