65% of all fund managers fail to achieve the historical rate of return which is usually defined as what the US stock market returns.  That historical return is based on stocks never being sold and dividends always being reinvested in those same stocks.  No retirement plan can do that.  Let's hope the PERS mangers don't consistently fall into the 65% group (odds are, they will).  Managers that consistently beat the market are a fraction of a percent of all mangers and those successful managers retire and/or die and can be replaced with those who fall into that 65%.  I will add that most private sector fund mangers can't make mistakes and have the tax payer bail them out.  That statement used to be zero (0) private fund managers until the president Bush and Obama administrations came along.  John Maynard Keynes said it best when it comes to stocks,"... in the long run, we are all dead."