The US’s largest pension fund fell just short of its investment target in fiscal 2019, underlining the difficulty of earning the kind of returns state and local funds need to pay future benefits.

The California Public Employees’ Retirement System earned 6.7% in the year ending June 30, it said Thursday. Its goal is 7%. The performance leaves the retirement system known as Calpers with 70% of what it needs to afford all future obligations to public workers across the state of California.