(Dow Jones) -- The California Public Employees' Retirement System, whose $259bn (€182bn) in assets makes it the largest public pension fund in the US, today will consider a novel approach to paying its fund managers that could shake up the asset-management industry's fee structure.

Calpers investment staff plans to present to the board a system in which the pension fund's global stock managers would receive a fee only if they outperformed certain benchmark indexes. Managers whose returns failed to beat the index would be paid nothing for that period.