The California Public Employees Retirement System (Calpers) is considering altering its fee structure to reward external investment managers only if they outperform certain indexes, the Wall Street Journal reported on Monday.
Calpers, the nation's largest pension plan with some $259 billion under management, currently pays external fund managers a fee whether or not they outperform relevant indexes. It pays additional fees if they outperform, the paper said.
The paper said the proposal will be presented to the board on Monday. It said many other pension plans may follow Calpers if it adopts the new proposal.