Officers of the largest US pension fund have recommended that their investment targets drop to 7% because of a cash crunch and changing market conditions, a move that would set a more cautious tone for those who manage retirement assets around the country.

The proposal to abandon a long-held goal of 7.5% over three years came during a board committee meeting of the California Public Employees' Retirement System in Sacramento. The rate would drop to 7.375% in fiscal 2017-18, 7.25% in fiscal 2018-19, and 7% in fiscal 2019-20.