Investment performance took center stage at the recent Senate Committee on Ways and Means meeting, highlighting the importance of a well-diversified trust fund amid market fluctuations. With over $28 billion in assets, the trust fund relies heavily on CAPERS investments, which account for more than half of its revenue.

In 2024, the fund reported a solid return of 9.3%, surpassing the target assumed rate of 7%. Historical data shows a 20-year return of 7.3%, a 25-year return of 6.9%, and a 30-year return of 8.4%. The trust fund's assets have impressively doubled over the past two decades, growing from $9.8 billion to nearly $24 billion.

Committee members emphasized the need for a strong funded ratio, ideally above 80%, to weather potential market downturns. The discussion underscored the reality that while market fluctuations are inevitable, proactive management and diversification are key to maintaining the fund's health and stability. As the committee looks ahead, ensuring robust funding levels remains a top priority to safeguard against future economic challenges.