California Public Employees' Retirement System chief executive officer Anne Stausboll will retire.

PHOENIX - California Public Employees' Retirement System chief executive officer Anne Stausboll announced Thursday that she will retire as the head of the nation's largest public pension fund.

She will depart on June 30 after seven years at CalPERS' helm.

Stausboll was appointed to the post in January 2009, and oversaw the adoption of a risk mitigation policy that CalPERS said will slowly and responsibly reduce its assumed rates of return, but which Gov. Jerry Brown has criticized and which some analysts have said could leave local governments on the hook for bigger pension liabilities.

"It has been an honor and privilege to serve CalPERS, our Board and staff, and the public employees who serve California," said Stausboll in a statement. "Together we have made CalPERS a stronger organization, one that is well positioned to provide retirement and health security for future generations. I'm proud of our progress and ready to explore the next chapter of my life."

The CalPERS Board will conduct an immediate search for her replacement. Board President Rob Feckner praised Stausboll in a statement.

"CalPERS is a better organization because of Anne," said Feckner "She led us through a difficult period, and we have emerged as a more accountable, transparent, and smarter institution. We will miss her and we wish her the very best in her future endeavors."

Stausboll had previously worked as CalPERS chief investment operating officer and as interim chief investment officer. She also worked in the pension fund's legal office for six years as a staff attorney and as deputy general counsel.

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