The California Public Employees’ Retirement System is set to report a 23% decline in its assets for this fiscal year, making it the worst return in decades for the pension powerhouse. While members of CalPERS might fret about the $56 billion loss in value they won’t be the only people feeling CalPERS pain—local municipalities, who leaned on CalPERS for affordable loans, also will suffer. Another byproduct of the national recession and California’s budget mess, how will CalPERS weather the storm?

Guests:

Clark McKinley, CalPERS public information officer on investment matters

Alicia Munnell, director of the Center for Retirement Research at Boston College