The California Public Employees' Retirement System (CalPERS) is a public pension fund providing retirement and health benefits to 1.5 million state and local public employees and their families. Its new 560,000 SF headquarters expansion covers two full blocks of downtown Sacramento; it is located in Lincoln Plaza, which is bordered by Q and R Street, and 3rd and 5th Street. The development includes two U-shaped office buildings of four stories and six stories. It features a sculptured glass entrance atrium, tiered shading devices on the facade, trellis-covered veranda, and several outdoor terraces. The project contains first-floor retail space as well as an underground pedestrian concourse connecting the existing Lincoln Plaza Building to the new expansion.

In 2006, the CalPERS headquarters expansion achieved a LEED Gold rating under LEED-NC version 2. From the project's initial planning phase, CalPERS demonstrated a commitment to using sustainable design principles. Early in the process, the entire team participated in a green building workshop to identify and prioritize green strategies for the project.

Intelligent siting, envelope design, and building orientation helped capture the benefits of "free" natural cooling and shading. The project's almost 1,000 parking spaces are underground, which reduces the urban heat island effect and minimizes the development footprint.

Among the project's energy-related achievements, it incorporates an 87 kW array of photovoltaic panels, contributing to an energy savings of approximately 38% beyond ASHRAE 90.1-1999 (and Title 24-1998 requirements); waste heat is recovered from the chiller for water heating; and a comprehensive metering system measures, monitors, and verifies the efficiency of the building systems.

The project team implemented most of the LEED Indoor Environmental Quality strategies, including low-emitting materials, views to the outside, construction IAQ management, thermal comfort controls, and increased ventilation effectiveness.

Green finish materials include bamboo flooring, recycled-content carpet, regionally manufactured materials (42% of the building materials were manufactured within 500 miles), and FSC-certified wood doors and worksurfaces. More than 90% of construction waste was diverted from landfill; for those efforts, General Contractor Hensel Phelps Construction Co. received the 2004 Waste Reduction Award from the California Integrated Waste Management Board.

The CalPERS project also received the 2006 Green Honor Award from the AIA's Central Valley chapter, a 2006 Pollution Prevention Award from Sacramento County, and an Environmental Recognition Award from the Sacramento Environmental Commission. In addition, the CalPERS company received a Flex Your Power award, in recognition of the energy efficiency achievements of the headquarters expansion project, CalPERS' commitment to reducing energy use at all of its property holdings, and the company's investments in environmental technologies and environmentally responsible stock portfolios.