The California Public Employees’ Retirement System has defended its plans to manage assets for workers outside its scheme. There has been some apprehension that the scheme would pose a threat to other fund managers, which Calpers has vehemently denied.
They have plans to market their savings products to external employers and employees within the next three years. The income generated from fees would then be added to the central defined-benefit retirement fund. They say that this would reduce the need for employers contributions and the covering of administration costs.
In order for the plan to go ahead there would need to be a change in legislation.