More than 51 of 64 state pension plans were underfinanced last year, compared with about 25 in 2000, according to a recent report by Wilshire Associates.

A 1996 study by Wilshire Associates explains why: Calpers's efforts have worked.

"The market lost perspective," said Dennis Tito, the founder of Wilshire Associates.

Indeed, according to Wilshire Associates, the combined value of all publicly traded stocks in the country is no higher now than in October 1997.

Wilshire Associates manages money for clients from all over the world.

As measured by Wilshire Associates' index of more than 5,000 actively traded stocks, the market lost $20.28 billion, or 0.69 percent, in value.

Wilshire Associates is a consulting firm based in Santa Monica, Calif.

For example, Wilshire Associates tracked 42 companies during five years when Calpers took an active role in their governance.

As measured by Wilshire Associates' index of more than 5,000 actively traded stocks, the overall market's value increased $30.13 billion, or 1.13 percent.

Its investment returns were consistently ranked at the top of pension funds its size by Wilshire Associates, a consulting firm.