US - The California Public Employees' Retirement System had estimated its total fund risk has doubled over the past year.
The document said: "A significant increase in both realized and forecasted market risk has occurred in the recent quarter reflecting the surge in volatility in the financial markets."
Like other pension funds, the US$183.3bn CalPERS has been placing an increased emphasis on risk management.
Staff plan to introduce a revised risk policy to the board in mid-2009 that outlines the various forms of risk measurement staff is employing - including credit risk, leverage and stress testing.
Separately, the pension fund said it returned -13.7% in the quarter ending 31 December.
The pension fund's US$15.2bn cash equitization program lost 23.2%, the worst performer in the quarter. The best performer was the $44.6bn fixed income portfolio which returned 2.3% for the quarter.
CalPERS investments returned -27.1% for the year and -2.5% annualized for the three years ended 31 December.
CalPERS also approved making two test portfolios permanent and increasing the allocation to a fundamental portfolio at the 17 February meeting, according to recently posted minutes.
The board graduated two internally managed active emerging markets test portfolios from the pension funds' developmental portfolio totalling 3% of global equity, or $2.1bn, to each.
The board also increased the cap for a fundamental developed markets international portfolio to 10% of global equity, or about $7bn, from a cap of $1bn now.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.