The $230.1 billion California Public Employees’ Retirement System (CalPERS) is planning to reduce its investment target, The Associated Press reports. CalPERS staff has proposed that the board lower its estimate about the amount of money the fund will make in the future, cutting its discount rate assumption from 7.75% to 7.5%.

The move may force the state and other employers with workers covered by CalPERS to increase the amount they pay into the pension fund, probably by $200 million or more. As of February 2011, the pension fund had a shortfall of about $75 billion between its accrued liabilities and the market value of its assets.

Click here for the story from The Associated Press.

Click here for additional coverage from Cal Coast News.