The $259-billion California Public Employees' Retirement System
, the nation's largest public pension fund, is set to look into a proposal today on a new payment scheme for its fund managers, according to The Wall Street Journal's Craig Karmin
and Shefali Anand
Fund Track column
. Under the proposal, which will be presented by Calpers' investment staff to the board, Calpers' global stock managers would get a fee only if they beat certain benchmark indexes. Managers who don't outperform the index would not be paid anything for that period. Should Calpers adopt the new structure, many of the country's other large pension funds could also follow suit. A spokesperson for Calpers told The Journal that the board isn't expected to take any action today and details of the proposal have yet to be worked out.
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