Investments

Issues Update

CalPERS Assumed Rate of Return Low Compared to Other States
March 23, 2011

CalPERS 7.75 percent assumed rate of investment return – or discount rate – is low compared to other state pension funds according to the National Association of State Retirement Administrators. In a Wall Street Journal report entitled “Public Pension Fund Squeeze”, CalPERS is among 16 pension funds in the nation who assume a 7.75 percent rate of return, compared to 88 state pension plans that assume and 8 percent or higher. The Journal report also states that over 10 years, a pension fund would earn $32 million more on its initial $100 million from a 7.75 percent return than a 6 percent return according to the Pew Center of the States.

For more information, view the Wall Street Journal.








In order to add a comment you must be logged in and have a screen name. Login Now.
Not a member? Register Now.