As we head into 2026, I know the number one thing CSEA members care about when it comes to CalPERS is simple: Is my retirement secure?

The good news is yes, and it is getting stronger.

Last July at CSEA’s Annual Conference, CalPERS CEO Marcie Frost shared the great news that our investments earned an 11.6 percent return, well above the 6.8 percent target. That marked the second year in a row of strong positive returns. Because of that success, CalPERS now manages just over 600 billion dollars in assets.

What does that mean in plain terms? It means the fund is healthier. When CalPERS’ funded status goes up, it is a strong sign that the investment strategy is working and that the system is better positioned to pay benefits long into the future.

Over the past year, the CalPERS Board also approved two major changes designed to keep the fund strong over the long term. One of the most important is something called the Total Portfolio Approach, or TPA.

Rather than managing investments in separate buckets, this approach looks at the entire fund as one portfolio. It allows investment teams to work together and focus on the best opportunities at any given time, instead of staying locked into individual asset categories. This strategy has been used successfully by large pension funds around the world.

Strong oversight is built into this approach. Clear rules and regular reporting ensure the Board stays fully informed about performance and risk every step of the way. This Total Portfolio Approach will begin rolling out in July 2026.

At its core, CalPERS invests your retirement dollars with the same care you would use yourself. The goal is steady growth, smart risk management, and long-term stability. This new approach is designed to help the fund perform well while staying within a responsible level of risk.

As we look ahead to what 2026 brings, I want you to know that the CalPERS Board and staff remain fully focused on protecting your retirement. Building the healthiest pension fund possible means peace of mind for our members and the freedom to enjoy time with family and live retirement without financial stress.

This column is the first in what will be a regular update from your fellow CSEA members serving on the CalPERS Board. While I am writing this inaugural piece, I am thrilled to be joined moving forward by fellow CSEA member and newly elected CalPERS Board member Troy Johnson. Troy brings a strong member perspective and a deep commitment to protecting the retirement security of school employees. I look forward to working alongside him on the Board and sharing future updates together so you can stay informed about the work being done on your behalf.