The California Public Employees’ Retirement System disclosed Tuesday that it has paid $3.4 billion in performance fees since 1990 to its private equity managers who earned $24.2 billion for retirees from their investments, the Los Angeles Times reports.

According to Calpers officials, the profits generated justify the payments since “private equity has the highest net returns in our portfolio,” Calpers Chief Investment Officer Ted Eliopoulos said.

Taxpayers are the ones who must pay for any investment shortfalls.