SACRAMENTO, July 21 (UPI) -- California's two government pension funds reported nearly $100 billion in losses Tuesday, amounting to about a quarter of their portfolio values.
The California Public Employees' Retirement System, the largest in the nation, posted a preliminary drop of $56.2 billion for the fiscal year that ended June 30.
No. 2 California State Teachers' Retirement System said its preliminary loss was $43.4 billion.
The two losses combined amount to $99.6 billion.
The tremendous drop in value is expected to have a direct effect on how much money the state and some 2,000 local governments and school districts will have to contribute to pay for pensions and healthcare for 1.6 million government workers, retirees and their families, the Los Angeles Times reported.
As pension-investment income falls, governments have to make up the difference to meet the state's pension obligations, the Times said.
CalSTRS provides retirement, disability and survivor benefits for California's 833,000 prekindergarten through community college educators and their families.