Public Pension Leadership in Practice: Lessons from Marcie Frost, CEO of CalPERS

Marcie Frost, CEO of CalPERS, shares insights on disciplined long-term investing, governance reform, transparency, navigating high-profile scrutiny, and building pathways for women in public pension leadership.

In celebration of Women’s History Month, NCPERS kicked off a special Public Pension Profiles series in March highlighting the unique career paths of women shaping the future of the public pension industry.

Over nearly 25 years in the public pension space, Marcie Frost has learned that leadership in this industry requires more than technical expertise. It requires discipline, values, resilience, and the confidence to lead in high‑stakes environments where decisions carry significant long‑term impact. 

As CEO of CalPERS, the nation’s largest public pension fund, Frost has emerged as one of the most influential leaders in public retirement systems. Nearing her 10-year anniversary at the helm, she has guided the organization through market volatility, governance reform, and cultural change — while helping deliver improved long-term funding outcomes for the system’s members. 

Why Retirement Security Matters: A Personal Path into Public Pensions

Frost’s path into public pensions began with a personal understanding of why retirement systems matter. 

She grew up watching her grandparents work hard and save diligently, only to face financial uncertainty later in life. They did not have access to a formal retirement plan, and unexpected expenses eventually outpaced their savings. 

“That left a mark with me,” she says, and it shaped her view of why retirement security matters so much. “And pensions sounded interesting to me,” she recalls. 

She began her career in Washington state focused on workers compensation, gaining experience with employee benefits, labor standards, and family medical leave programs. When a leader she respected encouraged her to apply for a role in the state retirement system, Frost took the leap, joining in 2000 to oversee an imaging system project.  

She steadily took on more responsibility, eventually serving in a cabinet‑level position. This experience would later prepare her to lead CalPERS, one of the largest and most visible public pension systems in the country. 

Leading From Both Sides of the Table: Trustee and CEO Perspective

Few pension CEOs can say they have served as both a trustee and an executive leader. Frost can — and she credits that experience with shaping her leadership style. 

Having sat on an investment board herself in Washington, she understands what fiduciaries need from management, particularly during periods of market stress. Now, as CEO of CalPERS, she prioritizes trust, clarity, and strong communication between the board and executive team. 

“Governance really matters,” Frost says. “It’s important to understand the culture of the organization and the culture of the board. What works in one state may not work in another.” 

Under her leadership, CalPERS has emphasized disciplined, long-term investing and made difficult but necessary decisions, including lowering the system’s assumed rate of return. While controversial at the time, Frost views the move as essential to improving the fund’s long-term sustainability and credibility. 

Transparency has also become a hallmark of her tenure. CalPERS has consistently been recognized as one of the most transparent pension systems in the country — a commitment Frost believes strengthens trust, even when it invites scrutiny. 

“At the end of the day, we are long-term investors. We don’t react too much to short-term market shocks” Frost explains.  

Leading a High‑Profile Public Pension System with Clarity 

Leading a system the size of CalPERS brings constant visibility. Decisions are closely watched, and expectations are high, but Frost approaches that reality with focus and perspective.  

“You have to know what matters,” she says. “One of the things that leaders figure out over time is how to compartmentalize the noise.”  

The key, she adds, is understanding what deserves your attention and what does not, which is why Frost emphasizes consistency and discipline. 

This reflects a broader leadership lesson that applies across the industry. Whether leading a large state system or a smaller local plan, clarity of purpose and confidence in decision-making are essential. 

Creating Pathways for Women in Public Pension Leadership

While Frost’s primary focus has always been on leading CalPERS effectively, her experiences as a woman in senior leadership also inspired her to help create more space for others.  

She recalls often being the only woman in the room during key meetings. “These were important conversations shaping investment strategy and pension decisions. It raised a simple question. Why?” 

That moment led her to take action. “A lot of women’s pathways are different than our male counterparts, but how do we get women to feel equally confident about the pathway that took them to their position?” 

Recognizing the influence of CalPERS and the need for stronger representation, Frost launched the Pathways for Women Conference to support women across the public pension, health care and investment sectors. The goal was to create a space for connection, shared learning, and leadership development. 

While there are a lot more women in the room today, “there’s still work to do,” she adds.  

Strengthening the Future of Public Retirement Systems 

Frost’s leadership reflects a broader shift in the public pension community. Today’s leaders are not only focused on investment performance and funding levels. They are also focused on people, culture, and long-term sustainability. 

Her work highlights an important truth for the industry: Strong pension systems are built by strong leaders who invest in others. 

For public pension professionals across roles and career stages, the message is clear. Leadership is not defined by a single path. It is shaped by experience, perspective, and a commitment to improving outcomes for members. 

By creating pathways for others, today’s leaders are helping build stronger, more resilient public pension systems for the future. 

And the accomplishment she’s most proud during her tenure so far? Watching the CalPERS’ funded ratio rise from 68% when she began, to 83.7% at the end of 2025, a clear indicator of fiscal strength that reflects a disciplined leadership approach that’s paying off.